Here is a response e-mail sent By Payday 2

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?


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.

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.

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.

But if Maryland prohibits payday lending..How can they operate from there..Without a liscense?..I don't understand

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.

But who gives them a liscense? Maryland..

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.

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.

Uunbelievable?

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.

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!!!!