Payday loan problems

Hi, and welcome to the site. You have come to the right place. We need to know if they are store front or internet?


luke

They are all internet . . . .

Philly welcome to the site. We can help. Great job on getting us the info requested. I'm sure cannr, volleyball mom, or goudah will be along soon to post your state laws & which companies are legal/illegal. We are here to help! Keep watching for replies. To me it looks like you have overpaid on some of these..all depends if the companies are legal in your state. hang tight someone will be along soon! Again..welcome, we're glad you are here!!

Here ya go..

Quote:
Pennsylvania State Information

Legal Status: Prohibited

Citation:
Check cashers are specifically prohibited from making payday loans under Check Cashing Licensing Act of 1998, ???? 505(a). Otherwise, consumer discount company act applies. 7 Pa. Cons. Stat. Ann. ???? 6201 et seq.

Small Loan Rate Cap
$9.50 per $100 per year discount or 24% per year

Where to Complain, Get Information:
Regulator: Pennsylvania Department of Banking
Address: Market Square Plaza, 17 N. Second Street Harrisburg, PA 17101
Phone: (717) 214-8343
Fax: (717) 787-8773
Regulatory Contact: Jim Keiser, Administrator of Non-Depository Institutions
http://www.banking.state.pa.us/banking/site/default.asp



Emails to and from PA Banking Dept

Hello,

I have a question about payday loans in Pennsylvania. Does the small loan rate cap of $9.50 per $100 per year discount or 24% per year apply to these loans? I took out a few on the internet and am trying to figure out how much I legally need to pay. For instance on a $200 loan would I be legally responsible for paying back only $248?

Thanks!

Response:

Dear Ms.:

The 9.5 discount and the 24 % simple interest refer to calculations that can be used by companies that are operating in Pennsylvania and are licensed under Pennsylvania????????s Consumer Discount Company Act. With a number of exceptions, a lender that is located inside of Pennsylvania and who does not have any special lending authority (i.e., a special license or charter) who is making smaller loans not secured by real estate can only charge interest at a rate of 6% simple.

A lender that does not have a physical presence in Pennsylvania but who has lending authority from some other state can generally charge the interest rate and finance charges allowed by that other state.

The Department may or may not be reviewing this policy and I would not count on this e-mail as an interpretive opinion before starting any lending or business operations.

James Keiser | Administrator Non-Depository Institutions

17 North Second Street, 13th Floor | Hbg PA 17101
Phone: 717.783.8242 | Fax: 717.787.8773
jkeiser(at)state.pa.us | www.banking.state.pa.us

What does this mean?

There are no storefronts in PA. They are illegal.

Internet lenders can lend legally to PA residents as long as they are licensed in another state. They would need to follow the laws of the state in which they are licensed.

So what would this mean? It says that internet lenders are legal as long as they are licensed in another state. How would I check that?

What would it mean if they were not licensed?

If theyy are not licensed anywhere then you only owe the principle no interest.

Looks like they are illegal in your state whether they are store front or internet. Please read the stick at the top of the forum pertaining to closing your bank account so you can gain control of your paycheck again. You need to send a Cease & Desist letter to these companies as well, then file complaints with address listed on your state laws along with the AG, FTC & the BBB.

I know BIG is illegal!
Cashnet usa is legal!
The others I am not sure of.
You can always call them and ask them what their license number is and for what state the license is in. Otherwise someone with more experience with these other companies will be around to help more.

oops my apologies..i just saw the end of that...see i'm getting ahead of myself. I've only been on the forum for about 2 weeks & just trying to help. I'll let the people who have more experience guide you from here. Sorry for any confusion... :(

No LMK. That is where PA is confusing. If the internet pdl is licensed in another state then they have to follow the rules of the state they are licensed in. Pa put that loophole in there for some unknown reason. So any PDLs that philly has that are licensed in another state are legal. It is confusing and I am just starting to get the hang of it.

Sorry lmk I guess I was typing as you were posting your own retraction.

Lmk don't stop you are doing fine. It is all a learning experience. I have made more than my fair of mistakes and I am sure I will make more. I remember Pa rules because Goudah had to correct me on it.

No worries..I think I'll just stick to being the "Welcome Wagon" for now.

Thank you all for your responses!

So what do I do with them? What should be my first step?

It's actually not a loophole per se. The reason things are like that in PA is because when the laws were written, PA used the terminology "In this commonwealth". This has been interpreted by the PA Dept of Banking to mean that the laws only apply to companies with a physical location in PA.

If you want more information about this particular subject, you can go to the PA Dept of Banking website, click on laws & regulations, then interpretive letters, then consumer discount company act. Part way down the page is the stuff about internet based lenders.

I stand corrected.

It's just easier to say it's a loophole . . . I say the same thing because it's easier. But technically it's just the way the laws are worded . . . .

As LMK said read the link about closing your account.
http://www.debtconsolidationcare.com/paydayloan/close-account.html
THen you would need to send out letters revoking their right to debit your bank account, and revoke any wage assignments. Then you need to contact the legal companies and try to work out a paymnet plan with them. Focus on the legal one first then the illegal ones.

No Goudah, thank you for the explanation. I do try to help but I still want to learn. The more I learn the more I can help others the way you have helped me. :D

Anytime! I learn new things about pdl's everyday . . . .

Okay, are there copies of the letters to send?

Also, how would I find out which companies are legal and which aren't?

philly, hang on. I'm going to look at your pdl's right now and I'll check. Just hang on for a minute. :D

philly, your Cash Central. I am safely assuming they are not located in the United States and are illegal. I am posting both addresses for them. I personally called them to verify their physical address and was attacked regarding why I wanted to know the information. Big red flag. Illegal. Here are the two addresses:

Cash Central
508-11601 99 St
Grande Prairie, AB T8V 6Z1
Telephone: (780) 532-9999
Fax: (780) 538-3087
cash-central.ca

Cash Central Ltd
13 Sioux Rd
Sherwood Park, AB T8A 3Y1
Telephone: (780) 416-5510
Fax: (780) 416-5516

Not licensed/legal.

Global Payday Loan, LLC
PO Box 572037
Murray, UT 84157-2037
Telephone: (888) 227-4638 ext. 528
Payday-Loan-Yes.com

WOW! Hang on. This was on the BBB site. Let me check their state to see if licensed. Holy crap. :shock:

PayDay OK of Delaware, LLC
2207 Concord Pike #606 (866) 612-4506
Wilmington, DE 19803

PayDay OK of Delaware, LLC
2810 Sudderth Drive Suite 211 (866) 612-4506
Ruidoso, NM 88345

PayDay OK of Delaware, LLC
2207 Concord Pike #604 (866) 612-4506
Wilmington, DE 19803

PayDay OK of Delaware, LLC
2207 Concord Pike #607 (866) 612-4506
Wilmington, DE 19803

PayDay OK of Delaware, LLC
42 Read's Way Suite C (866) 612-4506
New Castle, DE 19720

(817) 546-2700

(866) 201-5377

(866) 701-5370

(866) 580-1226

(866) 554-5763

Pay Day One

Payday ok

PayDay SelectThis is not necessarily a complete list.

YES!


They are licensed as PayDayOK of Delaware, LLC.

Cash Central actually is legal - They are licensed in every state they lend in. They are loaning to PA consumers under their Utah license.

Their address is:

Cash Central
84 E. 2400 N.
North Logan, Utah 84341

I think you may be thinking of another company Cannr . . . . .

Ah! I see what you did - There are a bunch of different companies called Cash Central on the BBB . . . . You clicked on the one that said loans, which happens to be another company.

Thank you, goudah. However, why am I not seeing Cash Central on the licensee database? And, is this the correct address that I have posted? These are the only two I could find and also do not see them on Utah's licensee database. I am going blind! Help me!

Well, I know these guys aren't licensed/legal. LOL!

B I G Payday
1005 Terminal Way STE 102
Reno, NV 89502-2179
Telephone: (877) 282-5450
Fax: (877) 762-7350
big-int.com

The correct address for them is the one I posted - They are located in Logan, Utah.

The reason you can't find a license for them is because their license is under thier parent company, Direct Financial Solutions. If you go back to the Utah DFI site and look for that name you will see a license for Direct Financial/Cash Central.

How were you searching for their address? At the BBB?