Why does an online company have to follow my state laws

I'm dealing with ARM too and just send them a copy of our state laws. The new law recently enacted specifically states that internet payday loan companies need a state license in order to lend to resident in this state. It will be interesting to see if the BBB responds to that???

Guest , I will post the satte laws for you (just select your state),

http://www.debtconsolidationcare.com/paydayloan/explain-pdls-laws.html

Oops, Kash, you beat me to it by one second! :-)

http://www.cfsa.net/industry_best_practices.html

Here is a link to the CFSA best practices. From what I understand they provide a loose guide to somewhat regulate lending. Granted, if ARM is not a member of the CFSA they are going to say that they do not have to follow the practice. But, the bottom like is, they may not be licensed in ANY state! Therefore, they are completely illegal. Do not let them get you upset by saying that they don't have to follow your laws, because they do.

They aren't a member of the CFSA. Only storefronts and really legally operating internet pdl's are members. None of these shady types are members.

The exact quote from arm to the letter to BBB is. Mr. me agreed to the terms of the contract that states the account shall be governed by the laws of the jurisdiction in which the lender is located, regardles of the state the borrower may reside.

Is this true or untrue even if it does say that in the contract

If this ARM is Accounts Receivable of Florida..then they are the same CA I am dealing with...they are not a member of the BBB...so why would the BBB be questioning the legality of abiding by state laws?

Guest, to answer your question it is not true. An IPDL will say and do anything to appear as if they are a legally operating company, when in fact they are not.

Kash is right. They will say anything. Just stand your ground with them. I don't think they would dare take you to court, because they aren't even legal.

Most all of the ipdls have the disclaimer in their papers that state we agree to abide by their state laws...most of the time they are not even licensed in the state they are working out of...so what laws exactly are they following and that they expect us to follow too....NONE! Many or I should say most of the non-licensed illeagal ipdls will say and do anything to get you to pay, throw laws at you, threaten inprisonment, arrest,etc. They can not follow through on any of their threats. If in question ..call your states attorneys office and ask...there are a few states that will say to follow the lenders state law...but this generally only applies if they are licensed, and as we all know that is usually not the case.

The reason they have to follow the laws of the state in which you reside is because if they sue the case would be held in the court of the county you reside hence making your local and state laws apply and not theirs. For example if you live in Florida and some company sues you that is based out of Nevada that company can not come to a Florida court and start quoting Nevada law although they can use federal law if it applies since it supersedes state law. They could also use other state law if your state differs to the binding laws of the state that the company resides but this is not usually the case for PDLs or IPDLs. Also, if you sign an illegal agreement it does not become legal just because you signed it. The agreement was illegal in your state and therefore not valid even if it may be valid in some other state, country, planet or solar system. For example if you signed an agreement that said you will pay an obscene amount of money or be stoned to death does not make that agreement legal in the US even though stoning is still legal and practiced in other countries.

I would just respond by saying Florida State law requires all PDL lenders to be licensed in the state of Florida to lend to residence of the state of Florida regardless of what ever agreement they are claiming that I signed or may not have signed. Florida state law also sets maximum limits which this company is not following. If this were to go to court I would be sued in Florida and only Florida state law would apply.

Sorry about that. Double posted because I did not see the first one register...