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 Posted: Thu Mar 22, 2007 10:19 am Subject: Here is a response e-mail sent By Payday 2 |
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Here is a response e-mail sent By Payday 2 go. I sent them a letter stating the laws of PA after they refused to make payment arangements with me and continued to harrass me.
| Quote: | Ms. Gibson,
I will address only a few of your allegations as I need to hold back some in the event we go to litigation over this. First we disagree 100% with all of your allegations in reference to where we are allowed to operate, where we operate, under what structure we operate, and what governing authority we are obligated under. So we are clear Payday2go is only a processing/verification operation we do not make credit decisions.
Now in response to your threats to file a civil suit for damages you are allegedly entitled to under PA law. I think it is unconscionable that you would take this advance out knowing what you were doing with the intention of making this claim after you have received valuable goods from Payday2go and its affiliates. In a nut shell I think you planned this entire event in order to save yourself a few dollars on the terms you knew you would be bound too and by threatening a lawsuit it would some how help your cause. I have to say, if left to me I would have our Law firm say we will see you in court, but seeing how we are discussing $400.00 it is not a sound business decision because even if we counter sue and we would win and get a judgment I am not sure we would be able to collect in the end. As you can tell I get offended when people make threats, but I am also a reasonable person. So taking the advice of counsel and against my judgment we will accept your offer of settlement to repay the $400.00 in full but not in $50.00 monthly installments, they will have to be every other week to coincide with your paydays. Now if that is not acceptable to you then please let me know and we will wait to hear from your attorney and proceed with all collections remedies we have at our disposable and permitted under the law. I want to assure you that we are not operating illegally under any of your allegations and you should be very careful before making a threat that could constitute a slander and defamation of character suit.
I hope that this has been helpful and that we can reach an amicably conclusion to this matter as I always like to keep our current and past customers satisfied even in the rare event that they feel differently at first.
Randy Wright
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keshiag80
Joined: 22 Dec 2006
Posts: 15
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| Posted: Thu Mar 22, 2007 10:52 am Subject: |
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Do you know that the laws of PA allow a company licensed in another state to lend to PA consumers? And that they are bound by the laws of the state they are licensed in?
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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!
Reply
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 |
I know I'll probably take a lot of crap for saying this, but the company is right. They don't have to follow PA laws. PA has a loophole that allows out of state lenders to lend to PA consumers under another states laws.
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goudah2424
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| Posted: Thu Mar 22, 2007 11:05 am Subject: |
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Well Payday 2 go operates out of Maryland, and here is Maryland Law.
Maryland Information:
Legal Status: Prohibited
Citation:
Check cashers/payday lenders are specifically prohibited from making payday loans under
Consumer loan act applies. Md. Code Ann. Com. Law II § 12-301 et seq.
Small Loan Rate Cap
2.75% per month; 33% per year.
I want to pay them back, but I will only do so legally, the extra fees they are attempting to charge me are wrong.
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keshiag80
Joined: 22 Dec 2006
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| Posted: Thu Mar 22, 2007 11:55 am Subject: |
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It isn't necessarily what state they are located in. If they are licensed in any other state, then they can go by the laws of the state they are licensed in.
For instance take cashnetusa. They are physically located in Illinios, but can legally lend to PA consumers under their license in Nevada. So you'd have to find out what state this company is licensed under to find out the legal amount you owe.
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goudah2424
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| Posted: Thu Mar 22, 2007 12:02 pm Subject: |
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But if Maryland prohibits payday lending..How can they operate from there..Without a liscense?..I don't understand
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nasdam007
Joined: 04 Mar 2007
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| Posted: Thu Mar 22, 2007 12:04 pm Subject: |
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As long as they aren't lending to MD customers, they can be physically located there and be fine. Since they are doing business over the internet, they don't have a storefront.
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goudah2424
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| Posted: Thu Mar 22, 2007 12:05 pm Subject: |
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But who gives them a liscense? Maryland..
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nasdam007
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| Posted: Thu Mar 22, 2007 12:08 pm Subject: |
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They could get a license in any other state too. As long as they have a license in a state they can lend to PA consumers.
If pdl's are prohibited in MD then I doubt they have licensing there.
They don't necessarily have to have a license in the state they are located in. As long as they aren't "doing business" in that state then they are within the laws to be located there.
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goudah2424
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| Posted: Thu Mar 22, 2007 12:14 pm Subject: |
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Lets look at cashnetusa as the example, since they operate legally.
They are physically located in Illinois. They are licensed in almost every state they lend in, but for Pennsylvania they use their Nevada license because Nevada law is more "friendly" then Illinois law.
Even though they are physically located in IL, they can use whatever license they want to govern their loans to PA. It's a crappy loophole in the laws for PA, and it totally sucks.
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goudah2424
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| Posted: Thu Mar 22, 2007 12:32 pm Subject: |
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Uunbelievable?
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nasdam007
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| Posted: Thu Mar 22, 2007 12:39 pm Subject: |
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I wouldn't have beleived it either, until I saw it in writing from the Pennsylvania Dept of Banking. The guy that responded to my email is even the guy that it lists on the paydayloaninfo.org site.
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goudah2424
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| Posted: Tue Aug 28, 2007 5:17 pm Subject: help with Utah and Nevada Legal loan fees and Kansas |
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hello!
anyone have info on state of utah and what they can legally charge for fees for me ( state of PA)- i know from this site that it's not my state of 6% but their state - this is for a 450 loan with USFASTCASH.
also any info on the lic state for NETCASHUSA? site say new mexico but i think it's nevada..
finally, LOAN POINT USA in kansas city kansas - loan say UTah - moneygram needs to go to kansas city kansas - so i guess i need lic info for Utah for them as well?
semms utah and nevada are the 2 winners
need help finding out this info as i am sending moneygrams and don't want to send more than i owe - the loan amounts for utah are 300, (geneva roth) 450 USFASTCASH 135 fee on that one, netcashusa 400 loan 120 fee - not sure where they are think nevada and cashnetusa is legit really like thme a lot - have great standign with them 750 loan but with my discount fee is 112.50=867.50 they are in Bluff, ILLinois but loan note doc out of bank of nevada - more friendly - nevada again!!
thanks to anyone who can help - i do the monegrams - 2 on sept 20th and 2 on oct 18 and 31st and possibly one next week ( usfastcash) - they are pusyhing me to pay it all in full 390 - just put on disababiltiy bad car accident but i need to break it up into 2-3 payments - my account is now on no debit as bank got tired of all the ACH"s - can i do a moneygram to them for half 195 or whatever half plus the correct half of the legal fee for their state - utah they say ???
thanks Loan shop usa dropped my loan when i began asking about licenseing and states and all of that - but i only owed 120 and they took out 180 when they shouldn't have so a wash i guess!!!! thanks guys!!!!
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julespooh
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