Internet PDLs

They like to beleive they do...but no they don't. Search for your state laws on lending. Most of these lenders are not licensed in any state.

I know for sure that GFSIL, MTE, and my cash now are not. I don't know about the other one. But I really doubt it. And, internet pdl's will want you to believe you have to abide by THEIR state law. No. They are lending illegally to residents in your state. And, I hate to say, you've got some ugly ones. They will lie to you, threaten you, etc. Don't get upset by it. They will argue with you. You will go around and around in circles with them. However, in the end, it all boils down to the fact that they are not legal. They are lending to residents in your state illegally. They are charging illegal fees. Period. If you need more help, like if you've overpaid, what you owe, etc., just post and let us know. But, no, internet lenders do not have their own set of rules. Like stated in the above post, they like to think they do, but they do not.

They will try and tell you that they are not doing business in your state but are bound by the laws of their state--but if they have loaned to you--and you have never set foot where they are, they are indeed bound and doing business by the laws of your home state. I actually wouldn't be surprised if this question came to the Supreme Court for a ruling at some point. Law Student, your take on this??

Some states do allow internet companies to follow the laws of the state that they are physically located in, but for most states they must follow the laws of the state the consumer is in.

I know there is a case going on in Kansas about this very topic. A ipdl sued the state when they told them they had to follow their laws. The case is still pending . . . .

I can't wait to find out the outcome of that. It will be interesting to see what happens and what it will mean for the ipdl co's and consumers.

The internet pdl sued the state? Is Kansas one of those states, like Penn., that allows for them to lend in other states, yet follow the law of the state that THEY are in?

Cannr...it sounds like the pdl sued Kansas because Kansas said they had to follow Kansas law and the pdl wishes to follow the law of the state they are in.

morningstarr, thank you again for clarifying for me! You know I'm a ditz! LOL! :D See? I'm not afraid to ask questions though! LOL! I'm trying to suck up all the knowledge I can! Thanks to you for wiping the cobwebs off my brain! :D

I'm actually not surprised that this happened and have been frankly expecting this for some time now. It was only a matter of time before the courts were going to have to get involved and decide this--if not just for PDL's but other internet-based businesses. The other big question I would guess is sales tax: what would be charged if any?

Is there sale tax on loans? I live in Oregon, where there is no sale tax, and don't know . . . . .

I know when you make a purchase over the internet you pay taxes from your home state. That's the way they set it up...you will see a disclaimer on some sites saying "excluding applicable tax" that means when you check out if your state collects tax on that kind of purchase you will be charges the sales tax. I don't think there is ever any tax on loans,etc. Only on goods purchased.

I think the bigger point is...the states where these companies are lending from are getting all of the licensing fees and business taxes. The states where they are lending without being licensed are not receiving that type of income from the business. They should at least have to pay the licensing fee in the states where they are going to lend if they want that state to allow them to do so.

Yeah, that's what I thought. Since a loan isnt' a good, that it wouldn't be taxed. But since I don't deal with sales taxes I wasn't sure . . . .

I posted the original question here a few days ago but can't log back in! Update...I emailed the AG and this is the response I received:

".......respond to your inquiry below regarding internet payday lenders. It is the position of the Bureau of Financial Institutions that an internet payday lender engaged in the business of making payday loans to Virginia consumers is subject to Virginia's Payday Loan Act (Chapter 18 of Title 6.1 of the Code of Virginia), including the requirement that it obtain a license from the State Corporation Commission. Currently, there are no internet payday lenders licensed in Virginia."

So now my question is what is my next step in ending this madness? I've paid back (in so called fees) more than what the loans themselves were. I've seen it mentioned in some of these posts about letters to send these companies but where can I find these letters specifically? Any help is appreciated.

They are basically saying the pdl has to be licensed in your state, from the way I'm reading it. You need to send out your pdl letters. There are links on here for letters to use as examples. Or you can even type your own up and just tailor it to fit each individual pdl. You've overpaid (I'm sure you have!)and you need to make note of that on your letters also. Check out the links for pdl letters as examples. Or, like I said, you can type up your own to cover all bases in one letter and just change it a bit to fit each pdl case. And, of course, file complaints against these pdl's! Any questions, just post away!