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Posted: Sun Jun 15, 2008 8:29 am Subject: Interest Rate for PDL's in Ohio

Could anyone help me with a few questions about store front pdl's in Ohio. A friend of mine has been caught up in a bad situation and I'm trying to help her out, but I don't want to give her the wrong information.

Anyway, she has a loan with a store front pdl, she's defaulted already. I was looking at her loan papers and noticed they have the percentage rate as 497.73% which also states, this is the cost of your credit as a yearly rate. I was looking over the Ohio pdl laws and this is what I found:

Posted: Sun Jun 15, 2008 8:47 am Subject:

Shazzers, I'm so glad you asked this question cause this has happened to me to and I don't understand it, hopefully someone will let us know:) Rreny

Guest · Posted: Sun Jun 15, 2008 3:00 pm Subject:

Shazzers,

What store front is your friend dealing with?

Posted: Sun Jun 15, 2008 4:06 pm Subject:

Ah boy, can't think can't think, and she isn't available to ask! Confused

Posted: Sun Jun 15, 2008 7:32 pm Subject:

One thing I can think of is some payday places require you come in on your payday or the day after. So if your friend took one out on Monday and the payday is that next Friday, you are not getting a full two weeks. That could maybe change the APR% then. I had a few stores when I had pdl's out made me come in the day of my payday or next day. They didn't give me a full two weeks to repay.

Posted: Mon Jun 16, 2008 7:01 am Subject:

Ryan is right - It depends on the time length of the loan. The example in the summary of law posted above assumes a 14 day loan term.

Notice also, it doesn't say Max APR = 390%

It is just calculating out the APR for the example. It's not saying that the max APR is 390%.

Posted: Mon Jun 16, 2008 8:33 am Subject:

Thanks for replying Goudah, just checking to make sure ! And what about the C&D Letter?

Posted: Mon Jun 16, 2008 8:37 am Subject:

C&D's only apply to 3rd party creditors . . . . Legally speaking the original creditor has every right to contact you by phone, they just can't call you at work if you request that they don't.

Posted: Mon Jun 16, 2008 9:23 am Subject:

So basically there is no legal ground to stand on when sending a C&D letter, it would be a matter of courtesy on the creditors part? I kind of knew that, but was just checking. Confused