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Posted: Tue Apr 22, 2008 1:31 pm Subject: I have a pdl question

I have two loans that i have not been able to make arrangements with. I live in Louisiana and want to know my state laws regarding this. I owe 350 to one and only about 150.0 principal to the other. The companies are ameriloan and Geneva Roth.. I had to close my account because i was over 500.00 overdrawn due to these outrageous debits...Any help would be appreciated I can pay off now but have no information on the companies and what would be the best way to go about doing this?

Thanks

Posted: Tue Apr 22, 2008 1:32 pm Subject:

Posted: Tue Apr 22, 2008 2:21 pm Subject: thanks

Thanks for the info...

Posted: Tue Apr 22, 2008 2:28 pm Subject:

Here is some other info to help you understand those laws posted above and how they will relate to your situation:

Email from the DFI and Whitenan:

I emailed John Braud, Deputy Chief Examiner of LA Office of Financial Institutions and asked him, if internet payday lenders(not residing in Louisiana) who lend money to residents of Louisiana, have to be license in Louisiana or do they just have to have a license in any state.

Response:

You probably had difficulty finding information on this issue because activity commonly referred to as "payday lending" is subject to the Louisiana Deferred Presentment and Small Loan Act, LSA R.S. 9:3578.1 et seq. These loans are consumer loans subject to the Louisiana Consumer Credit Law, LSA-R.S 9:3510 et seq.

C. Except, as otherwise provided herein, that following agreements by a consumer are invalid with respect to consumer credit transaction, or modifications thereof, to which this chapter applies;
1. by which the consumer consents to the jurisdiciton of another state.
2. the fix venue

Therefore, the above provisions require that all consumer loans made to Louisiana residents should comply with Louisina laws, but lending licenses are issued to persons with business locations in LA.

John Braud
Cheif Examinor
Office of Financial Institution

Other emails from me to DFI:

Hello,

Do internet based payday loan companies need to be licensed by Louisiana to lend legally in Louisiana? Or can they be licensed in their home state as long as they don't have a physical location in Louisiana?
I have several payday loans and they are all licensed in other states.
They say they don't need a Louisiana license, and looking through the list of licensees I don't see any that are not located in Louisiana. Is that correct?

Thanks!

Response:

Ms. :

Lenders who do not have a physical locations in LA do not qualify for licensure. Those who have licenses are listed on our web site at ofi.louisiana.gov if you would like to do business with one of them.

John J. Braud
Deputy Chief Examiner
LA Office of Financial Institutions
(225) 925-7762
(225) 925-4524 FAX

What does this mean?

Internet companies must comply with LA law.

Internet based lenders with no physical location can't have a license from LA. They are all illegal unless they also have a physical location in LA.

Specific amounts may be charged.

No rollovers are allowed, however, they can allow you to pay 25% of your principle, and the fee, and then do a new loan.

Some of the emails courtesy of Whitenan. Thanks!

Posted: Tue Apr 22, 2008 2:32 pm Subject:

so just to be clear and understand.. I checked list of licensees and neither of those are on that list so that makes them illegal....so does that mean the debt is valid if they were illegal to begin with?

Posted: Tue Apr 22, 2008 2:41 pm Subject:

Yes, it means the contract you signed was invalid, and cannot be enforced.

Posted: Tue Apr 22, 2008 2:44 pm Subject:

Thank you so much for your help!!! You just made my day!!

Posted: Tue Apr 22, 2008 3:01 pm Subject:

Morally speaking, you should pay back what you borrowed - So you would take the amount borrowed, minus any fees you've paid so far, and if you still owe, pay only that amount, and on your terms, not theirs. It's the right thing to do.

Posted: Tue Apr 22, 2008 4:49 pm Subject:

you go, Goudah! Smile

Guest · Posted: Wed Apr 23, 2008 6:49 am Subject:

Right, that was my plan so would the best thing be to send a money order with my info on it to their address? I saw on some earlier posts the address for Geneva Roth but what about ameriloan?

Thanks so much for your help