| Message |
Author |
 Posted: Mon Jul 14, 2008 1:31 pm Subject: WISCONSIN PDL LICENSE CLARIFICATION |
|
|
I was just a little confused on the license issue with payday loans in Wisconsin so I decided to email the Wisconsin Dept. of Financial Institutions. I asked how do the laws apply to internet loans and this is the response I got. I apologize if this is listed out here already.
| Quote: | | The type of license payday lenders obtain from this Department is called a loan company license. The loan company license is actually required of anyone who assesses or collects interest on a Wisconsin consumer loan with an annual percentage rate in excess of 18%. The phrase "Wisconsin consumer loan" refers to a loan that is considered made in Wisconsin and subject to a group of state statutes called the Wisconsin Consumer Act. Not all loans done over the Internet would be considered made in Wisconsin and require a loan company license. If the lender is not physically located in Wisconsin and did not directly solicit a Wisconsin resident for a loan, the loan would not be considered made in Wisconsin or subject to the Wisconsin Consumer Act Thus, a Wisconsin loan company license would not be required. A loan company license would be required if an Internet lender is physically located in Wisconsin or if it induces a Wisconsin resident into a loan by face-to-face solicitation or by a direct mail or telephone solicitation. A solicitation via mail includes facsimile and electronic mail. If the lender, or a marketing company on behalf of a lender, sends a Wisconsin resident an unsolicited e-mail offering credit, any resulting loan would be considered made in Wisconsin and the lender should have a Wisconsin loan company license. It is often difficult to determine if an e-mail sent to a Wisconsin resident is unsolicited. If the Wisconsin resident sought out credit on the Internet and applied for a loan on a website, the application information may be sold to various lenders as a "lead." There are numerous lead generating companies that have websites offering credit. The lead generating company or marketing company do not make loans. The actual lenders will use the information gathered in the application and offer the applicant a loan. In a case where the consumer seeks out credit on the Internet and applies for a loan, the resulting loan is not considered made in Wisconsin and the lender is not required to be licensed as a loan company. Whether an Internet lender must be licensed in the state it is physically located in would depend on the laws of that state. The laws vary from state to state and some states have no laws governing payday loans. Please contact me if you have any additional questions. |
_________________
ILLINOIS LICENSE SEARCH / CONSUMER CREDIT / GUIDE TO PAYDAY LOANS
http://www.idfpr.com/dfi/ccd/ccd_licensees.asp
ILLINOIS PAYDAY LOAN LAWS
http://www.paydayloaninfo.org/state_detail.cfm?id=IL
WISCONSIN PAYDAY LOAN LAWS
http://www.paydayloaninfo.org/state_detail.cfm?id=WI
WISCONSIN LICENSE SEARCH
http://www.wdfi.org/fi/lfs/licensee%5Flists/
|
|
PinkLady
Moderator
Joined: 15 Jun 2006
Posts: 1412
Debtcc Points: 19993
|
|
|
| Posted: Mon Jul 14, 2008 1:33 pm Subject: |
|
|
Yeah, that's correct - Puddlejumper is from WI and found the same info too. 
_________________
How I make some extra cash
I earn at least $20 extra every month doing offers. And you don't have to pay a cent.
|
|
goudah2424
Moderator
Joined: 31 Oct 2006
Posts: 7974
Debtcc Points: 111343
|
|
|
|
PinkLady
Moderator
Joined: 15 Jun 2006
Posts: 1412
Debtcc Points: 19993
|
|
|
| Posted: Mon Jul 14, 2008 1:39 pm Subject: |
|
|
Except - They are not licensed ANYWHERE. That still gives you room to fight, because even though they don't have to be licensed in your state, they do need to be licensed in A state to lend legally in the US.
_________________
How I make some extra cash
I earn at least $20 extra every month doing offers. And you don't have to pay a cent.
|
|
goudah2424
Moderator
Joined: 31 Oct 2006
Posts: 7974
Debtcc Points: 111343
|
|
|
|
PinkLady
Moderator
Joined: 15 Jun 2006
Posts: 1412
Debtcc Points: 19993
|
|
|
| Posted: Mon Jul 14, 2008 2:05 pm Subject: |
|
|
No, the prior loans wouldn't be solicitation, since you were already a customer of theirs. It would be the initial contact that would matter.
The initial contact would be what would matter. If you searched the internet for payday loan, and applied on a site, and that's how you got the loan, they would only need to be licensed in any US state.
If they sent you an email without you ever having any contact with them, then they would need to be licensed in WI.
But - That would be very hard to prove. I think it would be easier to fight them as not licensed in the US, then try to fight them on the solicitation or non solicitation clause. Since a WI license still allows them to charge the moon, it's better for you to fight as unlicensed in the US.
_________________
How I make some extra cash
I earn at least $20 extra every month doing offers. And you don't have to pay a cent.
|
|
goudah2424
Moderator
Joined: 31 Oct 2006
Posts: 7974
Debtcc Points: 111343
|
|
|
