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 Posted: Wed Sep 26, 2007 8:06 am Subject: Payday loan hell in ky
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I currently have 10 payday loans, all internet, and I just found out that these are illegal in the state of KY. Can someone help me with what I need to do next?
Thanks
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guest
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Posted: Wed Sep 26, 2007 8:09 am Subject:
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| Quote: | Kentucky State Information
Legal Status: Legal (Applies to check cashers only)
Citation:
Kentucky Rev. Stat. Ann. ยง 368.010 et seq.
Loan Terms:
Maximum Loan Amount: $500
Loan Term: 14-60 days
Maximum Finance Rate and Fees: $15 per $100
Finance Charge for 14-day $100 loan: $17.65
APR for 14-day $100 loan: 459%
Debt Limits:
Maximum Number of Outstanding Loans at One Time: Two ($500 aggregate loans outstanding to all licensees)
Rollovers Permitted: None (cannot renew, rollover, or consolidate)
Cooling-off Period: None
Repayment Plan:
Collection Limits:
Collection Fees: One NSF fee (if disclosed)
Criminal Action: Prohibited
Where to Complain, Get Information:
Regulator: Kentucky Office of Financial Institutions
Address: 1025 Capital Center Drive, Suite 200 Frankfort KY 40601
Phone: (800) 223-2579
Fax: (502) 573-8787
Regulatory Contact: Gary Davis,, Branch Manager
Regulator Website
http://www.kfi.ky.gov/ |
I have for your reference listed the laws for KY
Please list for us who you have loans with, the amount borrowed, and the amount paid to each(fees and principle as one total for each)
You did tell us they were all internet.Once we get the info we will be able to help you
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kashzan
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Joined: 11 Jul 2007
Posts: 5463
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Posted: Wed Sep 26, 2007 8:39 am Subject:
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Here's a bit more information to explain what the laws mean:
| Quote: | Emails to and from the banking dept:
To Whom It May Concern:
I have a question regarding internet payday lenders. I have visited the Department of Financial Institutions site and found some information. However, I am still a little confused.
I understand that storefront payday lenders are legal in the state of Kentucky and have printed out the laws applying to them. However, there is nothing regarding internet payday lenders.
I did a search on the site to see if some internet payday lenders were licensed in Kentucky. No results came up for any of them. If the case is that an internet payday lender is not licensed in the state of Kentucky, what then?
Internet payday lenders are claiming they do not have to comply with Kentucky state law. They claim they comply with the law in which they are located.
If they are not licensed in the state of Kentucky to fund loans, are they not in violation of some sort of law?
Any help in this matter would be greatly appreciated. At the very least, it might clear up my confusion.
Thank you so much for your attention in this.
Response:
Internet payday lending is illegal in Kentucky.
Chris Thompson
Compliance Branch Manager
Reply:
I have emailed before regarding internet payday lending and received the reply that internet payday lending is illegal in Kentucky. Thank you for that information.
I now have another question. If an agency is attempting to collect on an internet loan - which was illegally funded - does the collection agency need to be licensed in the state of Kentucky? Is this even a legal debt to collect on?
Thank you for any information you can give.
Response:
I am not sure who if anyone licenses collection agencies. This Office does not consider it a legal debt as the entity was not licensed to do business in Kentucky.
Chris Thompson
Compliance Branch Manager
Reply:
I have viewed our state pay day law and understand that a store front pay day loan company can collect one NSF fee if your check is returned by your financial institution.
However, I have a question. How many times can a pay day loan company run the check through to your financial institution?
I have a pay day loan company that I am working on setting up a repayment plan; however, they keep running the check through my financial institution every week.
I was under the assumption that pay day loan companies may run the check through only once; however, I could be misunderstanding.
Could you please clairfy for me how many times a store front pay day loan company can run your check through your financial institution? I would like to be sure this company is following the law.
Thank you in advance for any answers/advice.
Response:
There is nothing in the check casher statute that prohibits the number of times a pay day loan company can run the check through; however, it is my understanding that banking law on allows a bank to do it only twice.
Chris Thompson
Compliance Branch Manager
What does this mean?
Internet based companies are illegal. They cannot collect on the debt through any means. Kentucky does not license them, and does not allow companies not licensed in KY to lend legally.
Storefronts can charge you 15% of the face value of the check.
Rollovers are not allowed.
A big Thank You! to Cannr for providing this information!  |
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goudah2424
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Posted: Wed Sep 26, 2007 8:44 am Subject: reply
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Please list out each pld by name, the amount borrowed (principle amount only), and the amount paid back so far (total - do not break it down - just the total paid back so far). Once we have this information, we're good to go. You have come to the right place for help!
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cannr
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Posted: Wed Sep 26, 2007 8:56 am Subject:
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Ok Cannr, You are on my coat tails today. I love being followed by you . I actually was waiting for the loan info, and then I was going to Pm you about a KY neighbor.
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kashzan
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Posted: Wed Sep 26, 2007 9:07 am Subject: reply
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Thanks, kash! I saw KY and it jumped off the page at me. LOL!
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cannr
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Posted: Wed Sep 26, 2007 9:16 am Subject:
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Thanks everyone, here is my list of loans with the princple and amount paid. There are a few that I have not paid on yet but I know that I am already in over my head.
Principle Paid
E-Payday Loan 350 0
Cashtransfercenter 400 0
Ameriloan 300 270
National Money Store 350 814.97
Payday Services 350 175
Payday Loan Yes 300 0
GFS 225 350
Payday Max 360 110.12
Cash Today 200 680.00
Worldwide Cash 200 0
Thanks
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guest
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Posted: Wed Sep 26, 2007 9:23 am Subject:
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Sorry my numbers got jumbled on the previous post.
Principle Paid
E-Payday Loan 350 0
Cashtransfercenter 400 0
Ameriloan 300 270
National Money Store 350 814.97
Payday Services 350 175
Payday Loan Yes 300 0
GFS 225 350
Payday Max 360 110.12
Cash Today 200 680.00
Worldwide Cash 200 0
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Posted: Wed Sep 26, 2007 9:41 am Subject:
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Guest welcome. I am going to jump in here since you responded so quickly. You need to close your bank account. If they will not close it, you need to demand they atleast put a hard debit block on your account to keep any debits from posting. You will still be able to get deposits but you want to do whatever you can to keep the pdls from taking anymore mondy from your account. But, please read this about closing your account. It has some really useful information.
www.debtconsolidationcare.com/paydayloan/close-account.html
The poeple here are really helpful and know what they are talking about. If you have any questions, please post them. I know sometimes it can be overwhelming and confusing so I will let you read over this for now.
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RoxyNY
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Posted: Wed Sep 26, 2007 11:46 am Subject: reply
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guest, before you do anything else, take one more step, read anything else, do this!!! You have three overseas/illegal pdl's. Three. The overseas/illegal pdl's are notorious for sending out wage assignments to employers to get money from your paycheck. You need to NOW write a letter revoking any wage assignment you may have signed with them. Short and sweet. Put their name and address, then simply state: I (your name) do hereby revoke any and all wage assignments I may have signed with your company, your partners, or any affiliates. Then type your name. You do this NOW. They have to get it ASAP. Email it/fax it/mail it certified. Keep a copy, give a copy to your payroll person. The three you need to do this with are:
CASH TRANSFER CENTERS
GFS
CASH TODAY LIMITED
Do this right now to cover your ass. They will not hesitate to send a wage assignment to your employer. Especially Cash Transfer Centers.
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cannr
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Posted: Wed Sep 26, 2007 1:46 pm Subject:
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Thanks, I just sent the revoke wage assignment letters. Also, I have registered with Langhorne debt solutions but I was wondering if anyone knew how long it takes them to contact the creditors. I just do not want these pdl companies contacting my family.
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paulcarney01
Joined: 26 Sep 2007
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Posted: Thu Sep 27, 2007 8:09 am Subject: Langhorne
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Paul - Once Langhorne receives your first payment they will send the preliminary letters to your PDL companies. All calls stop at that point. They also include revoking wage assignments.
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motomom716
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Posted: Thu Sep 27, 2007 7:53 pm Subject: reply
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Thanks, motomom! Great information! 
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cannr
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