Payday loans illegal in PA?

kimbum06, Payday loans in PA are prohibted from charging triple interest. The cap is 24 percent per year. Figure out if you have paid more than that. Also file a complaint with your state Attorney General. Hope this helps. KYSIDE38

i got the loan in june and i've paid 650.00 dollars so far. i borrowed 750.00 but not they are saying my balance is 1300. do i have a leg to stand on?? i've offered more than once to set up payment arrangements but they are insisting i pay in full. i know they can send me to collection agency, but they are also saying they can take me to court can they?? and if so what will happen??? thanks

what state are you in?

i'm in pa go steelers!!!!!!

Pdls are illegal in PA, so if this is a storefront it is illegal. But I have learned that in PA if you have taken out an internet pdl and they are licensed in their state then they can lend to you. You might want to get clarification on the law by contacting your AGs office. How much have you paid on this loan? They still have to follow legal interest rate charges.

You should also file a complaint with your AG's office.

You guys may want to check out PA laws a little more closely. The state of PA does not allow lenders to be licensed in the state, however, if a PA resident takes a loan over the internet, as long as the lender is licensed in their home state, their states lending laws must be followed. Same goes for storefront. If a PA resident goes to Ohio and takes a loan from a storefront there, then they are bound by the lending laws of the state of Ohio.

Rach I sure understand what you are saying. Thats been the big fight here. Internet lenders say you fall under their jurusidiction. In WV the loan originates here. That is state law. Also I am being told that is federal law also. -These people are so crazy they will tell you anything. KYSIDE38

kyside

I am very familiar with payday lending laws so I am aware that is the case in WV. However, in PA that is not the case since no loans can legally originate within that state. I would hate to see someone follow general advice and end up in trouble with a licensed PDA (credit trouble, not legal trouble...) I agree with your point that a lot of internet lenders are not licensed (even in their home state), but I would hate to see someone take slightly incorrect advice and end up in a jam because they did it with one of the few licensed lenders out there (that is an exaggeration, there are more than just a few)

Rach Thanks and now I understand. My case is so different. In my state it is prohibited. I did not mean to give bad advice. Thanks KYSIDE38

kyside

not bad advice at all, in most cases very true. PDA laws are tricky and vary so much state to state that unless you deal with them all the time, they can be overwhelming.

Rach, The only thing I dont get on the Penn. site it says that payday loans are prohibited in PA. The interest cap can not be over 24 percent per year. How can the internet companies get away with this there? It seems like its just like my state? KYSIDE38

SO 24 PERCENT GAP?? i don't really understand, sorry. i borrowed 750 they are saying i owe almost 1400 isn't that over 24 percent and it's only been since june??? sorry i'm not very up to date on these things.

I have spoken personally with the PA AG's office regarding this so I am confident that this is correct info. PDA's are prohibited from originating in the state of PA, but the consumer can leave the state to obtain a PDA legally. The PA resident can go to a neighboring state, take out a loan at a storefront and be bound by that states laws/usury limits. Same thing goes for the internet (I am referring to licensed lenders; not PD6/XpressCash/WEstbury/whatever the heck else they go by). Companies like CashnetUSA and Dollar Financial (I think they do web loans now but am not 100% sure of that).

kimbum

Are you sure your loan is with Cashnet USA or is it with Cashnet500? The 2 companies are very, very different...

Kim the way I figure it you should not be charged more than 180.00 for interest at the most for a year. KYSIDE38

$1400 does seem high, even with added collection fees and possible return check fees...

yes i'm positive it's with cashnetusa, i've cut ends i can't not pay 200 out of each paycheck. how can someone refuse money that's owed?? no matter how much it is??? these companies need to be stopped, they are taking advantage of entirely too many people.

like it or not, the demand is there so they are here to stay. Like I said earlier, you could try just sending a payment, I would say at least $100 and that may buy you some time with them; showing intent to pay a debt goes a long way.