Payday Loan Trouble In Kentucky.

Hello, I am need of help with payday loans. I am confused on what I should do. I would rather not file bk if possible. I have read posts here that say internet payday lending in Kentucky is illegal. I joined Oak View Law Group in May but I got scared when I found out the payday loan companies might contact my employer. I re-joined last week and Oak View is taking out a payment this Friday to resume the plan. If online payday lending is illegal in Kentucky what kind of rights do I have?
Oak View does not seem to care if they are legal or not they just negotiate with them on a payment plan. In the mean time while I am waiting to build up enough funds to pay these companies off does this mean they will continue to contact me and my employer? Here is what I have. These payoffs are with the fees included.

Ameriloan Owe 520.00
United Cash Loans Owe 640.00
Zip 19 Owe 840.00
The Cash Spot Owe 625.00
City View Cash Owe 260.00
Instant Loans Now Owe 520.00
PDL Ventures Owe 340.00
ACE Cash Services Owe 325.00
Kenwood Services Owe 390.00


With the exception of Instant Loans Now, ACE and Kenwood. I have paid far more than the princable balance. As I have rolled many of these over or re-loaned because I didn't have the money to pay back. Any help or direction would be greatly appreciated as I am burried and lost. If these loans did not exsist i would be fine with my normal bills, I am ashamed that this has happened I don't know what to do. My credit stinnks already and has done nothing but get worse since I got into this mess.

You really do not need oak view. If the loans are illegal in KY all you really need to repay is the principle amount of the loan. If you have overpaid all but three, then you just need to pay the 3 that you still legally owe on.
Please see the sticky regarding dealing with illegal loans and follow those instructions

Guest, you sound like a member that forgot to sign in! If not why not join?

How do I know that they are illegal? Kentucky law talks about store front check cashers but I cannot find out anything on internet based loans.

Kentucky requires internet based pdl's to be licensed by your state, at first glance I can see that many of yours are not. Click the link below to check the licensee data base in Kentucky.
http://fi.ky.gov/scr/ifs/default.asp?div=cs
Click the link below to read your payday lender laws.
http://www.paydayloaninfo.org/state_detail.cfm?id=KY
CLICK HERE to find out how to deal with illegal lenders.

See the contents of Kentucky HB - 444 .

It states that all online payday loans are illegal and they may not collect any moneys including the principle. now if you choose to pay back the principle, that is your choice but not required by the state.

The language about when HB - 444 goes into effect is unclear. it says july 1, 2009 in some places and january 1, 2010 in others. but it has long been the policy of kentucky to not license online lenders.

The first thing I would do is to close your bank account so they cannot take more money. Then I would fight them on grounds of being illegal in the state of kentucky.

i have to ask how you became so far in debt with fast cash type loans. these are not safe and should only be used for short term use, only if needed. Why dont you try getting a loan from your bank and paying these debts off that you have made from that loan. then talk to your bank about your habits of using fast cash and see if your bank has ideas on how to break the habit of runnung to fast cash loans.

Most people getting pdls are doing so because thier credit is not good enough to walk in the bank and get a loan in the first place. If they could just walk in the bank and get a loan I'm sure they would've instead of getting involved with pdls.

Hi Aduvall...
I am in the same position as you so I went straight to the DFI for a little information on this. I was put into contact with the person who heads up the licensing on Payday Loan Lenders. In her exact words, ALL internet lending is ILLEGAL and since they are they cannot prosecute you or garnish your wages. They cannot even come after you in a civil lawsuit. Morally, you are obligated to pay back the principle but legally you are not responsible for the fees. She advised me to close my account and change my phone number. This is straight from the DFI- I am not adding words. Hope this helps you out, I know it did me!
Kooky

I used the link provided by Shazzers above and attempted to locate Think Cash and Payday One as licensed lenders in kY and was unable to find anything. Am I using the link incorrectly?

I provided a link for the licensee data base, I never said Payday One or Think Cash was definitely licensed to lend in the state of Kentucky, instead I gave a link so the OP could check it their self. Think Cash is NOT a payday lender, they are an installment type of lender which means they do NOT follow the payday lender laws. Payday One is usually licensed to lend in most every state but I am not possitive they are licensed in KY.

Pay Day One may have listed your loan as an installment loan rather than a payday loan. That's what happened to me. The DFI said because of this I was legally bound to pay them (I'm also in Kentucky). But they worked out a payment plan with me for the principal only so give them a chance, they really were easy to deal with.

Payday One refused to work something out on principle only. They'll work something out but on the total amount (includes interest) only.

ALL internet lending is ILLEGAL and since they are they cannot prosecute you or garnish your wages. They cannot even come after you in a civil lawsuit. Morally, you are obligated to pay back the principle but legally you are not responsible for the fees. She advised me to close my account and change my phone number. This is straight from the DFI- I am not adding words. Hope this helps you out, I know it did me!

I guess I'm trying to figure out what is defined as internet lending? Installment loans...are they also internet lending? Is there somewhere that I can look to determine if Think Cash and Payday One are licensed to lend in KY under any pretences?

See below please

Installment loans do not fall under the same guidelines as payday loans. If my memory serves me right, PaydayOne is somehow connected with Think Cash, so I believe that Payday One is lending as an installment lender in KY, the OP needs to check the contract.