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 Posted: Wed Aug 06, 2008 7:48 pm Subject: pdls |
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I live in kentucky and like everyone else turned to pdls. Embarrased to say i have six loans. Got behind on bills family and friends are strapped. One loan lead to another and now it seems to be a never ending cycle. oneclickcash 300 paid 90.00 plus fee unitedcash 250 paid 75 no fee yet loanshop 300 paid 75 plus fee of 50.00 loanstore 200.00 pay 60.00 netcashusa 500.00 paid 150.00 ssmgroup200.00 paid 60.00 Please help get me out of this
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cbanks6242
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Shazzers
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| Posted: Wed Aug 06, 2008 8:45 pm Subject: |
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| Quote: | Kentucky State Information
Legal Status: Legal (Applies to check cashers only)
Citation:
Kentucky Rev. Stat. Ann. § 286.9.010 et seq.
Loan Terms:
Maximum Loan Amount: $500
Loan Term: 14-60 days
Maximum Finance Rate and Fees: $15 per $100
Finance Charge for 14-day $100 loan: $17.65
apr for 14-day $100 loan: 459%
Debt Limits:
Maximum Number of Outstanding Loans at One Time: Two ($500 aggregate loans outstanding to all licensees)
Rollovers Permitted: None (cannot renew, rollover, or consolidate)
Cooling-off Period: None
Repayment Plan:
Collection Limits:
Collection Fees: One NSF fee (if disclosed)
Criminal Action: Prohibited
Where to Complain, Get Information:
Regulator: Kentucky Office of Financial Institutions
Address: 1025 Capital Center Drive, Suite 200 Frankfort KY 40601
Phone: (800) 223-2579
Fax: (502) 573-8787
Regulatory Contact: Gary Davis,, Branch Manager
Regulator Website |
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Shazzers
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PinkLady
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PinkLady
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Shazzers
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| Posted: Thu Aug 07, 2008 3:32 am Subject: pdls |
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They are internet pdls which while reading a previous post are illegal in the state of Kentucky. Do i close my account at the bank what should I do next. Thank you
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cheri
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Shazzers
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| Posted: Thu Aug 07, 2008 6:46 am Subject: |
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The info is not incorrect - Internet lenders do have to be licensed. There just are no licensed internet lenders in KY. But there is some strange loophole that i've been trying to figure out, as there are some legally operating companies that lend there without a license. So there is something else going on . . . .
KY does not have any sort of law making internet lending illegal.
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Last edited by goudah2424 on Fri Aug 08, 2008 6:49 am |
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goudah2424
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| Posted: Thu Aug 07, 2008 7:07 am Subject: |
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In the link pl mentioned above it says that there is new legislation that make internet loans illegal, but that is not the case. The new legislation only does the following:
| Quote: | The Kentucky House passed HR 500 - a bill to increase restrictions on the state's payday loan industry - by a vote of 56-35.
HR 500 creates new sections of Subtitle 9 of KRS Chapter 286 to require the Executive Director of the Office of Financial Institutions to develop a database of deferred deposit transactions and to promulgate regulations specifying the information required of licensees. The bill also requires the office to file an annual report regarding deferred deposit transaction licensees' activities with the Legislative Research Commission.
The bill also makes the following changes:
- Reduces the service fee for a transaction charged by a licensee from $15 to $12 for a period of 30 days, rather than 14 days.
- Provides that a licensee shall access the database, required by this Act, to ascertain if a customer has outstanding deferred deposit transactions with other licensees that would result in a debt in excess of $500.
- Prohibits refinancing of a deferred deposit transaction and prohibits pay off of a deferred deposit transaction and immediate entry into a new transaction within 72 hours.
- Provides that failure of any deferred deposit transaction to comply with KRS 286.9-100 shall void the transaction from its inception.
Payday lenders would pay $1 per loan to fund creation of the database and would access it through a Web site. |
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How I make some extra cash
I earn at least $20 extra every month doing offers. And you don't have to pay a cent.
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goudah2424
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Shazzers
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| Posted: Thu Aug 07, 2008 9:15 am Subject: |
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Goudah I see that new law if from 7/1/08, would that affect the case I got at all? my thread is here
https://www.debtconsolidationcare.com/paydayloan/cashexpress-kentucky. html
What caught my eye is this,
"Prohibits refinancing of a deferred deposit transaction and prohibits pay off of a deferred deposit transaction and immediate entry into a new transaction within 72 hours."
That's exactly what this PDL company had my girlfriend doing. She would go in, pay it completely off, then take the same amount back out the same day. It went on like that for a period of months. She paid off and re did her last PDL on 6/3/08 if that helps.
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xandorf69
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| Posted: Thu Aug 07, 2008 9:34 am Subject: |
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The provisions of this law wouldn't go into effect until 7/1/2008. Since she did her last pdl on 6/3/2008, the new provisions of the law would not apply to those transactions.
_________________
How I make some extra cash
I earn at least $20 extra every month doing offers. And you don't have to pay a cent.
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goudah2424
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| Posted: Fri Aug 08, 2008 6:51 am Subject: |
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I looked into this a bit more . . . . Here is what I've found.
Internet lending is not specifically outlawed by KY law. But KY's law says the following:
| Quote: | 808 KAR 9:040. Limitation on electronic fund transfers from customer accounts.
RELATES TO: KRS 286.9-010, 286.9-100
STATUTORY AUTHORITY: KRS 286.9-090
NECESSITY, FUNCTION, AND CONFORMITY:
KRS 286.9-090 authorizes the Office of Financial Institutions to promulgate administrative regulations for the enforcement of KRS 286.9-010 to 286.9-120. This administrative regulation establishes requirements for deferred deposit transactions.
Section 1. In connection with a deferred deposit transaction, a licensee shall deposit or present for payment a customer’s actual check to the customer’s bank or other financial institution unless that check is redeemed or bought back by the customer.
Section 2. If there is nonpayment by the customer’s bank or other financial institution of the customer’s actual check, a licensee may use electronic debits of customer accounts in its collection efforts. (30 Ky.R. 525; Am. 868; eff. 10-31-2003; TAm eff. 5-2-2007.) |
So, since internet lenders use EFT, they are not legal. They must hold a check for the loan to be legal.
_________________
How I make some extra cash
I earn at least $20 extra every month doing offers. And you don't have to pay a cent.
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goudah2424
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Yes, get your account closed asap! Make sure it can NOT be forced back opened. After your account is closed, send letters via email to these companies and inform them you have discovered that ipdl's are illegal in your state, you can click on the link below for a sample of a letter you can send to them.
