I have 6 pdls and I cant pay may electric and gas bill

I've communicated with the MN banking dept about internet payday loans. This is what they told me:


[quote]________________________________________
From:
Sent: Monday, March 26, 2007 3:44 PM
To: Financial.Commerce(at)state.mn.us
Subject: Payday loan questions

Hello,

I have a question about internet payday loans. Do these need to be licensed in MN to be legal? Also, how do I calculate the legal amount of interest they can charge me according to MN laws? I see the laws state:

Maximum Finance Rate and Fees: $5.50: $0-$50; 10%+$5: $51-$100; 7% (min. $10) + $5: $101-$250; 6% (min. $17.50) + $5: $251-$350 (After default: 2.75% per month)
Finance Charge for 14-day $100 loan: $15
apr for 14-day $100 loan: 390%

So for a $300 loan how would I calculate the interest? And since no rollovers are allowed and the companies I have loans with have rolled them over countless times, would I be correct in saying that they are breaking the law? I've been told by several of them that they don't have to follow MN laws, even though they solicited me, because they are licensed in the state that they are located in. Is that correct?

I really appreciate any help or direction you could give me!

Thanks!

________________________________________


From: Terry Meyer
Sent: Tuesday, March 27, 2007 6:40 AM
To:
Subject: FW: Payday loan questions

First we don????????t license lenders that are domiciled in other states. Minnesota law does not have a long arm statute and allows residents to seek loans wherever they want. Solicitations via the internet or ads do not place the lender in Minnesota, only a physical location would [the exception being residential mortgage lenders].

The way to calculate the APR for a 14 day loan is either using a T-I calculator. A fast check using the example for a $100 14 day loan is;
$15 finance charge divided by the $100 loan [proceeds of the loan, or amount financed] = .15, or 15%
.15 divided by the number of days in the loan, or 14, gives you the daily rate of .0004109589
Multiply that number by 365 [days in the year] = 3.91071428415, or 391.07% APR

Does that help ???????? and in Minnesota rollovers or refinancing is not permitted. Name the MN lender and file a complaint.
________________________________________

From:
Sent: Tuesday, March 27, 2007 8:45 AM
To: Terry Meyer
Subject: FW: Payday loan questions

Terry,

So to make sure I understand this, a payday loan company located in another state doesn't have to be licensed to lend to MN consumers. But do they have to follow MN laws about rollovers and interest? Or can they follow the laws of the state in which they are located in?

Thanks for you help!

________________________________________


From: Terry Meyer
Sent: Tuesday, March 27, 2007 6:58 AM
To:
Subject: RE: FW: Payday loan questions

It is similar to credit cards ???????? I would bet, assuming you are a MN resident, that none of your credit cards are from banks located in MN. The Supreme Court ruled in both 1978 that rates, and 1996 that fees could be imported for credit cards issued by out of state lenders to other states borrowers. Its agency law. The use of the laws of the state in which the lender is licensed is required.

Please explain your interest and the firm you represent.

________________________________________
From:
Sent: Tuesday, March 27, 2007 9:04 AM
To: Terry Meyer
Subject: RE: FW: Payday loan questions

Terry,

I don't represent any firm. I'm trying to help a friend deal with his payday loan mess. He took 9 out over the internet a few months ago. And now they are calling him, threatening his arrest, calling his boss and telling his boss that he's about to be arrested, and just generally harassing him because he can't pay their fees and asked to set up payment arrangements. Since all the loans are over the internet he is being charged 300% to 999% for these loans. I was just trying to get some more information about the laws governing these kind of loans to see if he had anyway to fight them. The reason I was curious about the specific point of if state law governs out of state pdl's is because where I live, Oregon, they do have a law saying that out of state pdl's much be licensed in OR and follow the laws of OR. I was hoping the same thing applied to MN, because in that case all his pdl's were grossly overcharging him.

Thanks!


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Good luck ???????? we recently received a complaint on a Payday loan from Malta. Each state would have to be contacted for their payday loan law to determine if a violation occurred.[/quote]

I'm going to assume these are internet loans? While they don't have to be licensed in MN, they do have to be licensed where they are located to be legal. Odds are pretty good they won't be . . . . You need to locate the addresses for each loan you have. If you list the company names we can assist you.

You've already done the first step by blocking them from your bank account, but you really need to close the account. Once they realize there is an ach block they will produce and send through paper checks with your account info . . . . Closing it is the only way to prevent them from taking more money.

Well I know that Cash Central is licenced or at least that's what their website says- I owe them $300
Cashnetusa- 600
Ameriloan-250
payday1-500
oneclickcash-300
purposeloans-250

close your account and open a new banking account...

Is it really just that easy- what do I do about the money I borrowed from them?