Text of H.R. 1214: Payday Loan Reform Act of 2009

The new bill to amend the truth and lending act regarding payday loans.

A lot of repayment stuff in it.

Thanks nohiogal! Glad you're keeping on top of this.

I agree. Excellent find, NoOhio Gal. Reading through it, it looks like the disclosure parts are pretty much what's happening at most storefronts now. We all had to sign disclosure forms with the high interest rates spelled out--but we were all so desperate at the time that noone read them, right?
What I do like about this bill is that it spells out that defaulting is not criminal, which will eliminate much confusion across the country and mandates an EPP which people can live with.
There will be none of this garbage that we are hearing on the boards right now, where people are going to their storefronts that are in the CFSA and asking for an EPP and being told that they can't do it. If it's federal law, they've got no choice--and they HAVE to do it, which is nice.
We will have to follow the bill's progress through Congress.

That's all well and good....

Illlinois passed laws VERY similar (almost word for word) back in 2005. It didn't work. Why? Read the definition of a payday loan as spelled out in the act.

A lender can give a loan out for 92 days, called it an "installment loan", and because it doesn't meet the definition of a payday loan they don't have to follow those new laws.

Fair point. I think the bill's still in Committee in the House, so plenty of time to tweak it to cover all bases.

While I like some of the changes, it's still not going to stop the illegal companies.

Good post!

I have entered a complaint against this company with the attorney general of Indiana and also with the Better Business Bureau. I also have stopped payment on any more debits from this company. What else do I need to do? Please let me know! It's nearly cost me what little sanity I have left!
COMPLAINT ACTIVITY REPORT Case # 99238097 BBB Serving Greater Kansas City

Consumer Info: Pierce, Robin Business Info: Geneva Roth Cap Loans
8950 N CR 500 West 6950 W. 56th St
Middletown, IN 47356 Mission, KS 66202
765 354-6688 765 354-6688 913 825-1200


Location Involved: (Same as above)

Consumer's Original Complaint :
Subject: geneva roth



On or before October 23, 2008, I applied for a payday loan on the internet.On October 24, I received an email, (which I can produce), stating that I had been approved for a $500 loan with a fee of $150; with the first due date of November 7. Also, on that day, I was contacted by Charles McNeely, stating the same points. I was NEVER told that it would be $150 would be taken out of my account bi-weekly to "extend" the loan, nor was I told the interest rate. I thought that the entire loan would cost $650, and after that amount was taken out of my checking account the loan would be paid off. I would NEVER have agreed to paying $300 each month in order to receive a $500 loan! I have tried many times to contact them, but each time I am put on hold for a LONG time!
Since November 7, my checking account has been debited $150 every two weeks. So, as of now, April 14, I have paid nearly $1800 for a $500 loan!
I have no idea what to do now. They will just continue to take money out of my account when they should have been paid off long ago!
I am going to close my bank account.
I only hope that you can help me with this loan shark company.



Consumer's Desired Resolution:
I have paid over $1800 in fees for a $500 loan. I feel that this should definitely have paid the loan many times over! Especially when the terms that I agreed to weren't the same as what the "contract" says. I was quoted $150 for the whole loan of $500.This is like a bait and switch scheme. I would like to have the overage from $650; which would be $1150, refunded to me. This has nearly ruined my checking account with nsf fees, and I am going to have to close my account.

BBB Processing

04/22/2009 web BBB Complaint Received by BBB
04/22/2009 web BBB Complaint Validated by BBB Operator
04/22/2009 Otto EMAIL Send acknowledgement to Consumer - OTTO
04/22/2009 Otto EMAIL Inform Business of the Complaint
04/24/2009 BBB MORE INFO RECEIVED FROM THE CONSUMER : I forgot to add...I think that by not disclosing all the terms (interest, payoff and extension charges) that Geneva Roth violates Indiana's payday loan laws. Could you also check into this?

I am not sure why you put this under news but Geneva Roth is not licensed in IN.

I not sure it propses a national interest rate cap which I think is important to kill off these predatory lenders. We need something like the military service members got 36% cap.

Yeah...and @ 36% cap, legal lenders no longer lend to military folk...maybe that is the path to putting them out of business.

As far as the new bill goes I just hope it puts everybody in the position to prosper. There has been alot of people who have been taking advantage of that needs help

i like some of the changes and overall its a good attemp..but still its not safe enough i would say...

Thank you, this was quite helpful in the "repayment" area. Great job!

How do people get away with doing these things to people? I guess we are all desperate at times...And, desperate times call for desperate measures. Ugh, makes me mad.