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mschevious1 · Posted: Wed Jun 18, 2008 12:42 pm Subject: Michigan Laws Regarding PDL's

Can someone explain the law to me in English? I don't consider myself stupid but I'm not understanding them.

Posted: Wed Jun 18, 2008 1:00 pm Subject:

I'm posting your state law for you to see. Do you have questions regarding legal storefront pdls? Or internet pdls? We can help you figure it out with just a little more information! Very Happy

Posted: Wed Jun 18, 2008 1:01 pm Subject:

Posted: Wed Jun 18, 2008 2:04 pm Subject:

This info may help you decifer the laws posted above:

Emails to and from the Banking Dept:

From:
Sent: Wednesday, January 30, 2008 10:13 AM
To: Weigold, Mark W (DLEG)
Subject: Payday loan question

Hello,

Do internet based payday loan lenders with no physical location in Michigan need to be licensed by Michigan to lend legally to Michigan consumers? I am trying to help a friend with a huge mess. She has several internet payday loans, and they are saying that they only have to be licensed in their state, and that they can follow the laws of their state, not Michigan's laws. What is correct?

Thanks!

Response:

From: Weigold, Mark W (DLEG)
Sent: Wednesday, January 30, 2008 8:19 AM
To:
Subject: RE: Payday loan question

In response to your inquiry:

Being internet-based is not an exemption of Michigan statute. The location of the entity providing the payday loan (deferred presentment transaction in Michigan) does not create an exemption either. Based on your representation, a license is required to provide deferred presentment transactions in Michigan. Severe penalties may be incurred if an entity operates in Michigan without the requisite license.

Sincerely,

Mark W. Weigold, Manager
Consumer Finance Section
Office of Financial and Insurance Services
611 W. Ottawa Street
3rd Floor
Lansing, MI 48933
Business: 517/335-2073
Fax: 517/335-1501

What does this mean?

Internet lenders must be licensed by Michigan

Specific rates can be charged

No rollovers are allowed

Thank you to pirho451 for supplying me with this info. I then sent an email to the same place and got the exact same answer, word for word!

I have a few online payday loans and I am in michigan and they are higher than those rates.
What can i do about this,
thank you,
wendy

Posted: Mon Aug 25, 2008 4:17 pm Subject:

Wendy if you will provide us with more info, for example, the names of the pdl's, amount borrowed, amount paid back, and whether they are Internet or Store front loans I am sure someone will be most happy to assist you. Smile

Posted: Mon Aug 25, 2008 4:38 pm Subject:

Thank you, these are my payday loans...
thinkcash 500 12 total payment of 89 -pd 2payments
ameriloan 200 (260) pd 2 payments of 60
littleloanshop 300 (390) pd 2 payments of 60
centrunion 300 (390) pd 2 payments of 90
impactcash 200 (260) pd 2 payments of 60
checkngo 600 - have 3 payments set up which will pay all
mte financial 300 (390) pd 1 payment of 90

thank you and i wish i never got these loans, but we needed the money at the time, didnt realize how much it would catch up to us!! I feel these will never go away and i will never beable to get anywhere. I do not want to close our acct, but as you can see we are being charged more than the example of $15 for $100, we are paying an average of $30/$100, is this not right for michigan, if not, please let me know what i can do to get out of this.
thank you so much, so glad i found this site.
wendy

Posted: Mon Aug 25, 2008 4:59 pm Subject:

I understand, it's a vicious circle that you can't seem to get out of and that's exactly what these pdl companies want you to do! Shocked

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