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Interesting reply for Illinois . . . . .

Date: Mon, 11/05/2007 - 07:26

Submitted by goudah2424
on Mon, 11/05/2007 - 07:26

Posts: 7935 Credits: [Donate]

Total Replies: 17


So, I've been emailing all the state's DFI's about payday loan laws. I just got this response from Illinois.

When people say you don't have to pay back an illegal loan, I've said that they should check their state laws first.

I thought this was interesting . . . . It's hard to see what this guy is really saying . . .


Quote:

Dear Ms.

Any organization issuing loans to consumers in the State of Illinois needs to be licensed in the State. Internet Lenders take the stand while they are not legally licensed to issue loans in the State, they do, and if someone receives funds from an internet lender they are responsible for repaying the loan. The problem with these lenders is the inability to have continued contact with them, and their continued taking of funds from bank accounts. From a regulatory point of view unless we are able to contact them in writing it is almost impossible to do anything. Although we have managed to go after a couple of Internet lenders, it is very difficult without documentation.

Hope this has answered your question.

Barton Aplebaum

Barton Aplebaum
Assistant Supervisor-Consumer Credit
Division of Financial & Professional Regulation
(O)312-814-3350, (F)312-814-5168
Barton.Aplebaum (@) illinois.gov


Reply:

Barton,

Would that mean you would need to pay them what the contract says? Even if it's at 999% apr? Or would you need to pay them back per the max of IL laws? I'm confused, if they need to be licensed but aren't, and are still charging outrageous amounts, the consumer would still have to pay them what they want?

Thanks!

--------------------------------------------------------------------------------

Response:

Basically you would have to pay them what they charged. If you received funds from them. Also, there are no usery laws in the State of Illinois. We have licensed lenders who charge that rate. Yes they need to be paid. My advice to anyone who is involved with internet lenders is to close their account, advise the lender that they are being reported to the Division. In most cases this does little, but closing your account stops the over collection. But it does have an impact on any banking relationship.

Barton Aplebaum
Assistant Supervisor-Consumer Credit
Division of Financial & Professional Regulation
(O)312-814-3350, (F)312-814-5168
Barton.Aplebaum (@) illinois.gov


lrhall41

Submitted by goudah2424 on Mon, 11/05/2007 - 13:38

( Posts: 7935 | Credits: )


I know - I've had the same experience as Hvn. I've called them several times and got completely different answers! I'm trying to get things in writing from each state, which is why I'd sent the email. I was just shocked at the response!

My advice to any IL people out there would be to just ignore this thread - Look at it as an interesting read. I think I just got someone on a bad day or something.


lrhall41

Submitted by goudah2424 on Mon, 11/05/2007 - 15:11

( Posts: 7935 | Credits: )