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Posted: Tue Jun 03, 2008 7:34 am Subject: legality of payday loan company

Please be careful when posting on the legality of a payday loan company. Be sure that you have thourghly researched it, and are posting good information.

There are lots of loopholes and legal tricks that companies use. Just because you don't see them in a quick search of licenses doesn't mean they aren't licensed. Sometimes they are under a corporate name. Sometimes they are registered as a CSO instead of a PDL. All these things can be legal. You have to really check all the bases before you can really make a determination. Most of the known companies have been checked out, but I still see posts saying they are legal when they aren't, or illegal when they are legal. So just be careful and check first.

If someone says a company is illegal, and they aren't, and that person fights the company like they are illegal, that could get the person into a much worse situation then they are already in. No one wants that to happen to a user here because of information they recieved.

I know everyone is here to help, and it's wonderful! Very Happy

But please, just be sure to check out your information before you post it. It's not helping at all when you tell someone that desperatly needs help something wrong.

***This is not directed to any person - It's just a general reminder. Everyone is awesome here! Very Happy

***

Guest · Posted: Tue Jun 03, 2008 7:48 am Subject:

Hello Goudah,

So I have a list for you to reference for me.

ameriloan
CTC and Sonic Cash
365fastcash.net
Little Loan Shoppe
PayDayMax d/b/a Credit Protection Depot
MTE Financial
AIP
World Wide Cash

I have reserached and found most of these are ILLEGAL. By your research is this true? Thanks. Rolling Eyes

[/b]

Posted: Tue Jun 03, 2008 7:56 am Subject:

MTE and it's dba's are not licensed anywhere.

ameriloan is not licensed anywhere.

365fastcash is not licensed anywhere.

There are a couple different Sonics. There is a Sonic Cash that is legal and licensed in Idaho.

Little Loan Shoppe is licensed in Utah.

AIP is not licensed anywhere last I checked.

World Wide Cash and Payday Max I haven't looked into, so I can't say for sure on those two.

Posted: Tue Jun 03, 2008 7:57 am Subject: Be Careful!

Is there a way to do a sticky that list all the illegal companies that do not have license in the US?

Posted: Tue Jun 03, 2008 8:03 am Subject:

Problem with that is it changes, and can be different for every state.

I wouldn't want to make a list that could confuse someone into thinking a company was illegal when it wasn't for them but was for other people in other states.

Guest · Posted: Tue Jun 03, 2008 8:07 am Subject:

Thank Goudah. Correct me if I am wrong, but doesn't the consumers state laws supersede in payday lending. For example, is company A lends to Mr X, doesnt Company A have to follow Mr X's stats laws??

Posted: Tue Jun 03, 2008 8:10 am Subject:

It depends on the state. I'd say that is correct for 85% of the US States.

Most state's have long arm statutes that give them jurisdiction over any business done in their state. But not all state's have these kind of laws.

Posted: Tue Jun 03, 2008 8:10 am Subject:

It varies from state to state. Some states allow the laws of the geographic location prevail. Goudah has a list of those!

Posted: Tue Jun 03, 2008 8:11 am Subject:

I have a list of the one's I know of . . . But I haven't checked out every state yet, so the list is not complete.

Posted: Tue Jun 03, 2008 8:11 am Subject:

Well I thought she did!

Guest · Posted: Tue Jun 03, 2008 8:17 am Subject:

OK. What about the state of Virginia? Here are the laws if you let me post them.
Virginia State Information

Legal Status: Legal

Citation:
Va. Code Ann. § 6.1-444 et seq.

Loan Terms:
Maximum Loan Amount: $500
Loan Term: Min: 7 days
Maximum Finance Rate and Fees: 15%
Finance Charge for 14-day $100 loan: $15
apr for 14-day $100 loan: 390%

Debt Limits:
Maximum Number of Outstanding Loans at One Time: Not Specified
Rollovers Permitted: None (cannot refinance, renew, or extend)
Cooling-off Period:
Repayment Plan:

Collection Limits:
Collection Fees: $25 NSF fee; Court Costs; Reasonable Attorney's Fees (not to exceed $250)
Criminal Action: Prohibited

lujano · Posted: Tue Jun 03, 2008 8:24 am Subject:

Thanks for the clarification. I know this subject came up yesterday when I inquired about ameriloan and Route 66 Lending (which is now B.I.G.). How can I find out if Ameriloan and B.I.G. are CSO's in Texas?

Posted: Tue Jun 03, 2008 8:31 am Subject: Be Careful!

Goudah, I thought that there were some pdl's that are totally illegal in every state...is there not? Just curious....

I know I had to depend on the community to help me determine which ones were legal and illegal...but I guess that's what the forum is here for...just thought it would be easy for all to have a place to go to see exactly the ones that were not even legal in the US..

It was a thought, and would be nice...as always though; thanks so much for what you and the others do in this community, I know that for me I wouldn't be where I am now if it wasn't for you and the others...

A huge thanks.

Posted: Tue Jun 03, 2008 8:32 am Subject:

I have not checked out Virginia, so I can't comment on that one.

I won't post about the laws of a state until I've got the interpretations in writing from the state regulators. 5 people could read the laws you posted above, and come up with 5 different interpretations. You need to know how the state reads those laws.

lujano - Neither of them are CSO's in Texas. In the future, you can check CSO registrations in Texas on the Secretary of State's website.

lujano · Posted: Tue Jun 03, 2008 8:42 am Subject:

Your help is very much appreciated!! I will keep you posted on my outcome.

Guest · Posted: Tue Jun 03, 2008 8:48 am Subject:

Ok. So if I have overpaid many of these illegal loan companies listed above by hundreds, and filed complaints due to my state laws. Am I wrong for doing that. Now I am a lil confused. I know va laws state no rollovers and PAR rates of 390%. Many of these companies apr rates were through the rough of 438% and higher after doing my research. Is this wrong?

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