| Author |
Message |
|
|
 Posted: Fri May 02, 2008 7:41 am
|
|
|
I have been going back and forth with them after sending them a letter last week not to revoke my account, cease and desist calling me and revoking them from garnishing any wages. I proposed I would pay them the money owed less the fees etc.. I took out a loan of $500 and paid $270 toward it. They want $540. I am not budging.
Here is the latest email from them:
___________________________________________________
Jon,
According to Pennsylvania statute 6203.A: Since the Company will not have any offices of any kind in Pennsylvania or people physically present in Pennsylvania acting as principal, employee, agent or broker as those terms are contemplated in Section 3 of the CDCA, the Company is not "in this Commonwealth" as that term is used in Section 3 of the CDCA. Therefore, it is the position of the Department that the Company is not required to obtain a license under the CDCA in order to originate unsecured consumer loans via the internet to Pennsylvania residents. This position is conditioned upon the Company being licensed or otherwise authorized under the Company's home state law to engage in this type of lending activity.
In our email response to you last week we advised you that we do not have any store fronts in your state. We are strictly internet based. You are bound by Idaho State Law. As per your loan agreement that you electronically signed you MUST pay the balance in full. That balance is $560. We recommend that you set up arrangements on that amount. If you fail to do so we will secure funds as per your loan agreement to pay this loan off in full as we see fit. Please respond with an arrangement.
____________________________________________________
How should I proceed? Do I have any chance of not paying what they want? Please advise experts....thanks!
|
|
jt_91972
Joined: 21 Apr 2008
Posts: 110
Debtcc Points: 1234
|
|
|
 |
|
Posted: Fri May 02, 2008 8:47 am
|
|
|
I was under the impression that if the payday loan company is not licensed in your state then they are illegal and you are only responsible for the principal. I would contact your state's office of financial and insurance regulation to see what they have to say about it.
|
|
minsmi
Joined: 17 Apr 2008
Posts: 44
Debtcc Points: 492
|
|
|
|
Posted: Fri May 02, 2008 10:26 am
|
|
|
Jt, The way I am reading this, you are in PA and the pdl is in Idaho. If this is correct, 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. If this lender is licensed in Idaho, you will need to follow the laws of Idaho. If they are actually licensed in Idaho, you will need to work out something with them.
| Quote: | Idaho State Information
Legal Status: Legal
Citation:
Idaho Code Ann. ยง 28-46-401 et seq.
Loan Terms:
Maximum Loan Amount: $1000
Loan Term: Not Specified
Maximum Finance Rate and Fees: Not Specified
Finance Charge for 14-day $100 loan:
APR for 14-day $100 loan: No Limit
Debt Limits:
Maximum Number of Outstanding Loans at One Time: Not Specified ($1000 aggregate loans outstanding to all licensees)
Rollovers Permitted: Three (renewals)
Cooling-off Period:
Repayment Plan:
Collection Limits:
Collection Fees: $20 NSF fee + 12% interest per annum on unpaid amount (if disclosed )
Criminal Action: Prohibited
Where to Complain, Get Information:
Regulator: Idaho Department of Finance
Address: Consumer Credit Section, 700 West State Street, 2nd Floor Boise ID 83702
Phone: (208) 332-8000
Fax: (208) 332-8099
Regulatory Contact: Mike Larsen,, Consumer Finance Bureau Chief
|
From the licensee database in Idaho
| Quote: | Company Name: SONIC CASH LLC
DBA: SONIC CASH LLC
Contact Person: JASON BRIZENDINE
Address: 1843 N WILDWOOD ST
BOISE , ID 83713
Phone: 208-322-5010
License: RPD-318
Issued Date:
Effective Until: 9/12/2003
5/31/2008
|
_________________
In life it doesn't matter
how hard you hit, it matters
how hard you get hit
and keep moving forward.
|
|
RoxyNY
Moderator
Joined: 03 Aug 2007
Posts: 3903
Debtcc Points: 11752
|
|
|
|
Posted: Fri May 02, 2008 10:30 am
|
|
|
Roxy is correct - As long as there are no physical locations in PA, and the company is licensed in it's home state, the loan is legal.
_________________
How I make some extra cash
I earn at least $20 extra every month doing offers.
|
|
goudah2424
Moderator
Joined: 31 Oct 2006
Posts: 7303
Debtcc Points: 108708
|
|
|
|
Posted: Fri May 02, 2008 10:30 am
|
|
|
minsmi, You would be correct for several of the states. Some states as long as the pdl is licensed somewhere, the the borrower would need to follow the laws of that state, and in other state, internet pdls are prohibited. It took me awhile to figure all this out and learn which follows which laws.. 
_________________
In life it doesn't matter
how hard you hit, it matters
how hard you get hit
and keep moving forward.
|
|
RoxyNY
Moderator
Joined: 03 Aug 2007
Posts: 3903
Debtcc Points: 11752
|
|
|
|
Posted: Fri May 02, 2008 12:27 pm
|
|
|
Roxy, is Michigan like Pennsylvania? I really hope not... I have some Utah PDLs that I am fighting because I think they're illegal... 
|
|
minsmi
Joined: 17 Apr 2008
Posts: 44
Debtcc Points: 492
|
|
|
|
Posted: Fri May 02, 2008 12:35 pm
|
|
|
No, Michigan is not like Pennsylvania. They must be licensed in Michigan to lend to Michigan residents.
_________________
How I make some extra cash
I earn at least $20 extra every month doing offers.
|
|
goudah2424
Moderator
Joined: 31 Oct 2006
Posts: 7303
Debtcc Points: 108708
|
|
|
|
