I am in the Army and have some queries about payday loans
Date: Sun, 08/27/2006 - 11:28
As I mentioned before I am in the Army and
I have read that if you let a payday loan default,
they can separate you.
I current have these internet lenders:
PAYDAY OK
PAYDAY SELECT
DISCOUNT ADVANCES
UNITED CASH
APPLE FAST CASH
NATIONWIDE
CASH DIRECT EXPRESS
TEN DOLLAR PAY DAY LOAN
Does anyone know anything about these companies and are they licensed to lend? I am in Florida.
Hey there susan...it sounds like most of them are from the inter
Hey there susan...it sounds like most of them are from the internet. If they are, they are absolutely NOT licensed to lend in Florida.
I'm going to pm you some information. I live in Florida and have a name of someone that may be able to help you.
Also, I just picked this up on the Center for Responsible Lending website regarding pdl's for military personnel. It's dated Aug. 22, 2006...you may have some wiggle room here to negotiate if this bill passes:
Quote:
Earlier this year, the Senate passed a defense appropriations bill with an amendment that caps the interest rate charged by payday lenders at 36 percent instead of the 300 percent-plus they often charge. That amendment, sponsored by Sens. Bill Nelson, D-Fla., and Jim Talent, R-Mo., now awaits passage by the House. |
Susan.. You'll have to register here so I can pm you. Also ther
Susan..
You'll have to register here so I can pm you. Also there's free debt counseling available for you. A counselor will call you and can try and help you with this.
A few thoughts on the new law regarding servicemen and women.
A few thoughts on the new law regarding servicemen and women.
1) It won't apply retroactively, so be careful how you play it in dealing with the lenders. Not saying it won't help you in negotiations. I'm simply cautioning you to avoid the mistake of assuming the debt goes away once the president signs it into law.
2) This law probably means you won't be able to get another payday loan, at least not from a lender that has a license to protect. 36% a year may sound high, but in raw dollars the $3 a month a lender can earn on a $100 loan doesn't come close to covering the cost of making, servicing and collecting the loan. (The electronic transfer costs and the cost of running a DP Bureau or Teletrack report add up to more than $3. When acquisition costs (advertising costs divided by loans made) are added in it costs nearly $100 to make a loan. (So even the $15 a month on a $500 loan won't cut it.) This is why repeat business and refinancing are so critical to the pdl business model because those acquisition costs aren't present.
3) At least one federal court has held that military personnel stationed in a state are not residents of that state for purposes of state lending laws. Back in 1993, the 8th Circuit held in Pioneer Military Lending, Inc. v. Manning, 2 F.3d 280 (8th Cir. 1993) that Missouri's efforts to regulate a Nebraska lender that made loans to military personnel in Missouri violated the Commerce Clause of the Constitution.
4) Pioneer is still in business. It's expensive but still a heck of a lot cheaper than the interest on eight payday loans. I also understand that the Army and Navy credit unions make personal loans. Is there a chance of you getting an affordable loan that pays these guys off once and for all, especially if you negotiate the debt down first?
PDL's
I already have a loan through Pioneer and am not sure I can get another one. I noticed the interest rates on my PDL's are between 650-780% and these companies are not licensed in Florida. Florida's allowable interest rate on PDL's is 10%. Aren't their rates illegal?