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 Posted: Mon Jul 03, 2006 11:58 am Subject: Kentucky Pay Day Laws |
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I just found this about Kentucky's payday lending laws: Payday Lending is legal in Kentucky. If you choose to apply for a payday loan in the state of Kentucky, there are a few things that you should know about Kentucky's lending laws. Your loan period can range from seven to thirty days, and the loan amount can be as much as $500. The interest you pay can be as much as $15 per $100 borrrowed. Therefore, if you got a $500 loan, you would pay an extra $75 in interest for that loan.
I still cannot find out if my lenders are licensed or not. I know I've been over charged by pretty much all of them. The only one that didn't over charge me was Ten Dollar Pay Day loan, and that didn't last long. After 1st pay period I owed the loan, the "interest" rate shot up to $20.00 per $100.
What do I do about this?
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Gallopy
Joined: 20 Jun 2006
Posts: 41
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| Posted: Mon Jul 03, 2006 12:13 pm Subject: |
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The Dept of Finance in your state will be able to give information about the companies licensed in your state.
You can try this link http://www.accounting.eku.edu/ and see if it helps. If you are sure of paying more than the permissible rates as per your state laws, dispute with them in writing. You can also give a legal touch if the company fails to respond you. Be aware that no company can take more than the fixed rates as per the state laws. Dispute the charges with the company and claim for a refund. Do everything in writing for proof of records.
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PassionHunting
Joined: 30 Jun 2006
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polly
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| Posted: Mon Jul 03, 2006 12:17 pm Subject: |
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Gallopy, this link shows every consumer finance company who is licensed to lend in KY:
*edit http://fi.ky.gov/scr/ifs/default.asp?div=cs
I keep messing up that link!
edit* that did not work. go to the licensing link and put a * in the search text, then scroll down to consume finance, and then click 'currently licensed' and click submit, that will give you a full list.
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polly
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| Posted: Mon Jul 03, 2006 12:46 pm Subject: letters |
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Pollyandsay,
I have sent out three letters. I'm waiting on replys. I do not see where Sonic is licensed in Kentucky, so I might just close out my checking account to deal with them. I have gotten a debit stop from everyone else so far. I'm still working on them.
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Gallopy
Joined: 20 Jun 2006
Posts: 41
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| Posted: Mon Jul 03, 2006 12:49 pm Subject: |
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Gallopy, from what I have heard of Sonic, they are real jerks, so you may as well go with that route. From what I have heard Sonic is not licensed anywhere! Please share all positive results you have with the forum!
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polly
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| Posted: Mon Jul 03, 2006 12:53 pm Subject: Sonic |
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Sonic says that I'm bound to the contract by Idaho laws, even though I reside in Kentucky.
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Gallopy
Joined: 20 Jun 2006
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| Posted: Mon Jul 03, 2006 12:57 pm Subject: Sonic |
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The loan agreement you electronically signed is bound through Idaho State Law.
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Gallopy
Joined: 20 Jun 2006
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| Posted: Mon Jul 03, 2006 12:58 pm Subject: |
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Gallopy, they would be quite wrong. I'd do as Polly suggested and close your account, open a new one. If you do so with the same bank make sure that incoming debits won't cross accounts, and also let them know that this company may try to get to your money any way they can...and that they are no longer authorized to do so.
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phonguy
Joined: 01 Jun 2006
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| Posted: Mon Jul 03, 2006 1:00 pm Subject: |
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the agreement is bound by idaho state law, however jurisdiction of the loan applies to the state in which the loan occured. Since you are in Ky, it's Ky law that applies no matter how hard they try to convince you otherwise.
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phonguy
Joined: 01 Jun 2006
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| Posted: Mon Jul 03, 2006 1:01 pm Subject: |
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Gallopy, on the letter on my blog there is some federal case law which squashes the notion of governing law. You should be thankful that Sonic is trying to bind you to Idaho law rather than Scottish law as they used too! I will look up Idaho law for you and post a link in a minute...I betcha they aren't following that either:)
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polly
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| Posted: Mon Jul 03, 2006 1:14 pm Subject: Sonic's reply in whole to me.... |
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Brittany,
The contract that you signed disclosed that we are an Idaho state based company and we give loans from the state of Idaho. Please refer to the next insert from your loan agreement that you signed:
Governing Law: Notice: This transaction shall be deemed to be made in the State of Idaho and Idaho Law shall govern all aspects thereof. The licensing agency that regulates this transaction is the: Idaho Department of Finance, 700 West State Street, Boise, Idaho 83720, (208) 332-8000. You acknowledge that your loan application was sent by you to our office in Idaho and that we approved your loan and disbursed the proceeds to you from the state of Idaho. You agree that this loan agreement was made in the State of Idaho and the terms of this Agreement shall be interpreted and enforced in accordance with the laws of the state of Idaho without regard to principles of conflicts of laws. You further hereby agree that we may file suit against you in the State of Idaho to collect the balance due on the Loan and for that purpose you hereby consent to personal jurisdiction of the courts of the State of Idaho & agree that the laws of the State of Idaho will apply to the dispute. In lieu of filing suit we may elect to arbitration set forth below.
No matter what state you live in you have a debt with our company that must be paid back. If the debt is not paid back we can and will turn your account over to our legal department. They could possibly garnish your wages and report negative credit activity to all three major credit bureaus. All we need are suitable arrangements. If that $40 cleared you need to pay the remaining $220. Please respond with arrangements.
Regards,
Kristen
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Gallopy
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polly
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| Posted: Mon Jul 03, 2006 1:20 pm Subject: |
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Seriously, lil Ms. Kristin knows darn well they are supposed to licensed in every state that they intend to loan in. She is blowing hot air. Stay strong and don't let her push you around! Check you pm too!
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polly
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| Posted: Thu Jul 06, 2006 6:05 am Subject: sonic |
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Sonic has made a settlement with me to get it taken care of. No more interest and paying off rest owed. I can deal with this.
I faxed my letters for paid in full to Pay Day Ok and haven't heard from them. I've paid almost a $1,000.00 on a $500.00 loan since October of 05. Enough is enough. I have not heard back from Zip Cash, but I've had that loan as long as I've had Pay Day Ok's, so it is almost the same. Mr. Cash is letting me do a payment arrangement to pay off the balance, and I still have not heard from One Step Cash.
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Gallopy
Joined: 20 Jun 2006
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| Posted: Thu Jul 06, 2006 10:52 am Subject: |
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it's funny how all of these online PDL's keep settling when state licensing and governing law is brought up.
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phonguy
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