Please Help. All PDL information provided.

I couldn't see where the file I attached was, so here is a link to it.

waityn4jc.com/PayDays.htm

[color=red]Link made inactive as per forum rules - Mike[/color]

All these PDL's are online PDLs.

Waiting -

the key word in the legal terms here are this:

Rollovers Permitted: None (cannot renew or otherwise consolidate)

I know for a fact that DMS Marketing is rolling over her loan...

All of these loans are illegal according to this law one way or another...

I've computed the legal amount of interest she should pay on her first loan....its up to you to do the rest...

Company Initial Date Balance Interest Payments
Impact Cash $300.00 20-Feb-07 $325 728% $150 15-Mar
$150 30-Mar
Total Paid $300

According to my calculations - she owes $115.25 on this loan:

17.65% interest per 14 day period -

$300 + 17.65% = 352.95 + 17.65% = $415.25 Principle + legal interest... (I've compounded the interest)

She needs to close her bank account, and send letters requesting her account be marked paid in full in accordance with the tennessee laws, and what she's paid.

I am more than willing to compute what she owes on each, if you will help me understand how to compute it.

How did you know the interest was 17.65%?

Does the interest compound daily or bi-monthly?

What does this line mean:
Maximum Finance Rate and Fees: the lesser of 15% of the check or $30

Also, does the loan term max being 31 days and the max allowed to lend being $500 affect her amount due?

this is how I knew what the interest was:
Finance Charge for 14-day $100 loan: $17.65 (that = 17.65%)

I'm assuming that she took out a 14 day loan and they all just auto rolled over (against TN law). I compounded the interst every 14 days (you don't have to compound the interest, I just did, to be thorough)

That maximum finance Rate thing - I have no clue what it means....but the way i read it: is the max finance charge is $30 or 15% of the total amount borrowed...so in her case it would be $30 or $15 per $100 which = $45.... I'm not sure on this one...thats why I did the math.... math doesn't lie..he he


Loan term is that you can only take out a loan for the max time of 31 days.... that meaning your loan had to be paid off in 31 days....(and having a 14 day loan roll over once - doesn't count as a 31 day term).

Sound right?

Does the interest have to end after 31 days?

I am still a little confused and I guess its because you too are confused about that one line. :-)

Waiting - also, please just advise her to close her bank account...we'll figure everything with you, just have her close her account, so they can't keep taking from her. That is sooooo important to do. B/c no matter what you do, they'll keep takin g- sometimes they keep taking long after your loan is marked PIF... please have her close her account.

Thank you. I had already discussed with her closing her account. That was easy to find from reading these boards. What I am having trouble understanding is how much she owes and if she is due a refund. I was wanting to have all her ducks in a row regarding what she owed when we mail the letters.

The interest - I'm not sure about. I would have stopped the interest after 14 days, however, I try to figure out the maximum amount that I could end up having to pay!

Does anyone understand fully how the law and interest works in this situation? I would greatly appreciate the help.

did you check and see if the lenders were licensed in TN? Theres a link to the website.

Where is the link and how do I determine this?

http://www.tennessee.gov/tdfi/compliance/Lic_DP.html

use the name of the lender (that you provided above).

I could not find a single one listed on that page. So that means none are licensed in her state. What effect does this have?

Well....

Call this #: (615) 741-2236

That is the compliance division of the TN Dept of Financial Institutions. They should be able to point you in the right direction. At this point, she would only be liable for the principle + legal intersest, and would be due a refund of everything else. The compliance division should be able to give you a definitive answer on the interest clause of that law.

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I left of message with them ealier. They have not called me back yet.

Legal interest being the 17.65% every 2 weeks?

I talked to the TN banking dept a few weeks ago and this is what they told me about calculating the legal amount of interest:

Technically it is not an interest rate but service fee and this is how it works. The fee cannot exceed the lesser of 15% of the check amount or $30. So if you have a check amount for $100, the service fee would not exceed $15 (15% x 100). Keep in mind the fee is on the check amount, not cash amount. If the consumer requests $100 in cash, the check amount would be $117.65. The check amount of $117.65 x 15% equals $17.65, and cash is $100 ($117.65 - $17.65 = $100). If the customer asks ... "how much should I write the check for if I want $50?"
You can back into the check amount by taking $50 and dividing it by 85% or .85. In other words $50 divided by .85 = $58.82. You can verify by multiplying $58.82 x 15% = $8.82 service fee. $58.82 - $8.82 = $50.
Remember the service fee is limited to $30 on all checks exceeding $200.

Thank you goudah. Is the service fee always based on the original check amount? So, if the person begins to pay down their payment, do they still always owe $30 service fee?

How does the fact that in TN the law says the loan cannot be longer than 31 days effect payment?

One loan she received was for $600 though the state max is $500. Does this effect anything?

There is a 3 PDL limit in TN, but she has 5, does this effect anything?

Thank you so much.

Was I confused? Are they only allowed to charge the service fee one time? So, does she owe $30 over her initial loan and that's it? Is there no other interest?

The service fee is based on the original check. Since they can't rollover or be refinanced there legally isn't any pay down allowed like you are asking about.

No rollovers are permitted. Unless the companies are making her pay off the whole amount, then turning around and reloaning to her immediatly, then after the first paycheck they should've made her pay it off completly. The 31 days is probably there for people that only get paid once a month. Since no rollovers are permitted, 1 pay period is the longest the loan term can be. I would write letters to the companies requesting that everything paid after the initial period be applied to the principle.

The $600 loan was breaking the law from the start. I would write letters to the company stating that the loan was over the legal amount, and request that everything paid be applied to the principle.

The limit isn't really that important. If the pdl's are storefronts then they could get into trouble for still loaning, but internet companies are harder to enforce.


I would contact your banking dept and attorney generals office and enlist their help in filing complaints against these companies. It sounds like they are all breaking the laws. Having the banking dept and ag's office on your side can greatly help with "negotiations" with these places.

So you are saying they could only charge her the $30 one time? Everything else should be considered a payment to principle.

Is there any chance she will receive a refund from Internet companies?

That is the way I understand the law. I would double check with the banking dept to make sure that it's correct, but if it is correct then yes, you should be due refunds.

Now getting those refunds is another matter. That's where the ag's office and banking dept can really help. Some have been able to get refunds, others are still trying. But if a refund is due I would try to get it. These companies need to be held responsible.