HI
New to this site. I have 7 internet payday loans. I see alot of people saying they should be paid off because in certain state's how would I know where to find that out and also what is a cease and asst letter?

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In PA pdl's only have to be licensed in another state to lend legally. So you would have to find out if any of the companies you loaned from are licensed in another state to see if they are legal or not.

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How would I find that information out?

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If you want to post the names of the companies you are dealing with, we may be able to help you find them. Otherwise, I'd look in the state that they are located in first, or call them up and ask them where they are licensed. Sometimes they will tell you, other times they will lie, so it's hit or miss.

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Oneclick cash
zip cash
united cash loans
discountadvances
cash2day4u
tendollerpaydayloan
paydayselcet
Thanks so much
Cindy

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You can start weeding down by asking them
for their State ID # or EIN # to prove
that they are a legimate company and
contact the FDIC to validate them.
Especially if they won't let your Bank
do a wire transfer to their Bank.

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Huh? The FDIC has nothing to do with state licensing of payday loan companies . . . . And you wouldn't want them to do a wire transfer. I don't know if the above response was to another post, but i'm confused . . . .

I know that cash2day4u is not licensed anywhere, and tendollar is MTE (right?) so they aren't going to be licensed anywhere either. I'm checking on the rest, but odds are pretty good most if not all aren't licensed anywhere, although i think payday select is licensed in DE.

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Wow 7 of them?
Start weeding them down by asking them for their State ID or EI Number that proves they are registered
as a Payday Lender, your bank should be able
to wire transfer payments to their bank.
They will ask you why you need that information
but there are a lot of "payday" websites
that are not legit. GET EVERYTHING IN WRITING
including why they won't give their State ID
or EI #.

Check your state usury laws and pay day lending
laws. Review the Rico Act. For around 75.00
look in your local phone for a Consultation
with a Consumer Law Lawyer.

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Um, DO NOT do a wire transfer from your bank to theirs! You should only pay them with money orders or some other way that will NOT give them any account information.

Also, their EIN number will only show you that they have a license to do business. That is different then a license to do payday lending. That is a completly different situation. The state ID number or EIN will not help you.

Also, again, in PA they have a "loophole" that allows companies not physically located in PA to lend to PA consumers over the internet without a PA license, as long as they are following the laws of the state in which they are licensed. This information can be found on the PA dept of banking website, under laws and regulations, interpretive letters, commerical code.

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Ok I'm confused. It they are not licensed what can I do? Should I out a hold on my bank. My account is negative so I can not close it. Also what do I write in the letter. And is this Loophole bad for me?
Thanks
Cindy

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If they are not licensed then you only would owe them the principle amount borrowed. So if you've paid them more then you borrowed in fees then you need to request a paid in full letter (more on that later).

Please read this thread about closing your account:

http://www.debtconsolidationcare.com...e-account.html

See what your bank can do to stop these debits.

You need to also write them letters revoking any authorization to debit your accounts and any wage assignments.

This loophole isn't the greatest thing, but it isn't really that bad because most of the companies you are dealing with aren't going to be licensed anywhere. The ones that are licensed you will need to make some sort of payment arrangements with.

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In the letter you pretty much need to have the following points:

1. You revoke any and all authorization you gave to debit in any way any account you may have.

2. You revoke any and all wage assignments you may have signed.

3. Since this company isnt' licensed, and you have paid more then the principle, you request that your account be marked paid in full, that no further collection activities are initiated against you, and that your account status is updated as paid as agreed with any reporting agency.

4. If you haven't paid back the principle, or the company is operating legally, offer up payment arrangements you can afford. Send only money orders or other source of payment that doesn't have any account info on it.

5. Send this letter certified mail. Keep a copy.

This is just an outline of the things you need to include, and i'm typing fast so I may have left something out - If you browse the forum here you will read other's experiences and such and will be able to glean from the posts what sort of information you need to include.

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goudah,

You are correct, there is no way that a PDL company should ever get bank information once the initial account is closed / frozen / blocked et al. However, with respect, I don't know if you are entirely correct regarding the "loophole" in PA law if the letter I am reading is the one you referenced. You responded to a thread that I had started a while ago with the same information, and while you may be correct on one level, I think it isn't set in stone. Is this the letter that you are referring to?

banking.state.pa.us/banking/lib/banking/laws_and_regulations/062405.pdf

If I am reading that correctly, in this letter it is explicitly stated that interest shall be no more than 7% apr and the minimum loan term shall be 1 year. If I am interpreting this letter in the correct way, that would immediately dispense of iPDL companies as far as being protected with this law.

Maybe I'm wrong, I'm just presenting what I have come up with.

Either way, to the original poster, goudah is right for sure about the bank account. NEVER, EVER, give any new account information to PDL companies. They will debit debit debit until the cows come home.

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That is what the company that the letter was addressed to was planning on doing - Lend for a term of 12 months at 5 - 7% interest. That isn't the law, just what this companies "plan" was.

I emailed back and forth with James Keizer, the guy in charge of regulating pdl's in PA. This was the emails:

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I do agree that it isn't "set in stone" though. It is just the PA Banking Depts interpretation of the law. But it is what they tell any company lending over the internet. So I would think that if something ever went to court the ipdl would have a good defense, seeing how the state itself told them it was okay. Most payday loan laws are very gray . . . . That's why I always prefer to speak with the people that regulate and interprete the laws. That way I can back up what I'm saying.

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I didn't realize you had a direct response from the PA Dept of Banking.

Wow, that's a harsh reality for me right now...I was still thinking that I was protected since I live in Pennsylvania. Ouch.

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