I did reopen my new account at the same bank but I explained to them that I didn't want it connected to that old account at all, but I will call and make sure that it's understood. Please let me know whether to let Zipcash know about the new account because they are due to debit on the 4th. thanks again.
I would write to them. You want to be able to have a record of everything said in case you ever need it. _________________ Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y
Here's what I'm showing as the pdls, correct me if I am wrong:
BIG - unlicensed/illegal
TJF/BJM - unlicensed/illegal
Ameriloan - unlicensed/illegal
Power Funding - I searched this site and from what I've read, it doesn't seem as though they are legit.
Zip Cash - licensed in New Mexico - legal
Loan Point USA/Xpress Cash - has an address in Delaware; however, doesn't show as licensed
Arrowhead - has an address in Missouri; however, doesn't show as licensed
Geneva Roth - I think licensed in Utah. If so, they would be a legal one.
Like I said, if I am incorrect, please come along behind me and correct me!
I've already closed out my account so what happens when the legal companies aren't able to get the money on the 4th of April? What should I do? _________________ Register today to encash debtcc points.
I have a question about the two legal ones. Geneva Roth and Zip Cash. Ladydphilly says that she has been paying $90 biweekly on a $300 loan since Nov 07 so good guestimation since we don't have an exact date would be $810 paid out on a $300 loan. Wouldn't the payout be $390? And Zipcash is a $500 loan with a guestimation of payment at least $700 wouldn't it be $650. Is that still legal or does it depend on what was signed in the paperwork and the extensions? Please help me to understand. I am a friend of hers and directed her to this site.
Since PA allows companies licensed in other state's to lend as long as they don't have a physical location in PA, and that they follow the laws of the state they are licensed in. Here's some info from the PA Dept of Banking about that:
Quote:
Pennsylvania State Information
Legal Status: Prohibited
Citation:
Check cashers are specifically prohibited from making payday loans under Check Cashing Licensing Act of 1998, § 505(a). Otherwise, consumer discount company act applies. 7 Pa. Cons. Stat. Ann. § 6201 et seq.
Small Loan Rate Cap
$9.50 per $100 per year discount or 24% per year
Where to Complain, Get Information:
Regulator: Pennsylvania Department of Banking
Address: Market Square Plaza, 17 N. Second Street Harrisburg, PA 17101
Phone: (717) 214-8343
Fax: (717) 787-8773
Regulatory Contact: Jim Keiser, Administrator of Non-Depository Institutions
http://www.banking.state.pa.us/banking/site/default.asp
Emails to and from PA Banking Dept
Hello,
I have a question about payday loans in Pennsylvania. Does the small loan rate cap of $9.50 per $100 per year discount or 24% per year apply to these loans? I took out a few on the internet and am trying to figure out how much I legally need to pay. For instance on a $200 loan would I be legally responsible for paying back only $248?
Thanks!
Response:
Dear Ms.:
The 9.5 discount and the 24 % simple interest refer to calculations that can be used by companies that are operating in Pennsylvania and are licensed under Pennsylvania’s Consumer Discount Company Act. With a number of exceptions, a lender that is located inside of Pennsylvania and who does not have any special lending authority (i.e., a special license or charter) who is making smaller loans not secured by real estate can only charge interest at a rate of 6% simple.
A lender that does not have a physical presence in Pennsylvania but who has lending authority from some other state can generally charge the interest rate and finance charges allowed by that other state.
The Department may or may not be reviewing this policy and I would not count on this e-mail as an interpretive opinion before starting any lending or business operations.
James Keiser | Administrator Non-Depository Institutions
17 North Second Street, 13th Floor | Hbg PA 17101
Phone: 717.783.8242 | Fax: 717.787.8773
jkeiser(at)state.pa.us | www.banking.state.pa.us
What does this mean?
There are no storefronts in PA. They are illegal.
Internet lenders can lend legally to PA residents as long as they are licensed in another state. They would need to follow the laws of the state in which they are licensed.
So Utah and New Mexico laws would apply to those 2 trasactions. _________________ Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y
Utah has no cap on what can be charged for payday loans. The payback can be whatever the contract says. So unfortunatly Geneva Roth is charging correctly.
New Mexico law is better - It says only $16 per $100 can be charged, and that no rollovers are allowed. It also says there must be 10 days between loans. So if ladyphilly has been rolling over her loan with Zip Cash then she absolutly has been overpaying. She should have paid back $560 on her next payday, then have to wait 10 days before she could take out another loan with Zip Cash. _________________ Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y
Could I get into legal trouble for closing out my account? Should I call them and try to make an arrangement or should I wait until their transaction come back "account closed"? _________________ Register today to encash debtcc points.
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