What is the governing law?

It doesn't sound right to me. I always heard that it went by the laws of your state. But I could be wrong. Hopefully someone will be along shortly that will be able to help more. :-)

My main concern is criminal prosecution...I've never been in trouble in my life!! But, it seems like that is prohibited no matter where we are located?

This site is awesome...sad so many of us are in this situtation but great to have this forum.

That's right. Criminal prosecution is prohibited in VA. Plus, if you have internet loans then they are most likely not licensed in any state.

I have been told by the Florida Dept. of Financial Services that the laws of Florida Consumer Financial Act apply to the Interent Lenders. They state that the lender must be licensed to lend here and if they are not that the loan is uncollectable. I have sent emails to CFO Alex Sink and encouraged others to do the same. She never replied to either of mine. Maybe the head and tail in that Department can get togother one day. Sam Whited is the person in charge in the Orlando office and he said that the lenders must be licensed in the State of Florida to loan here regardless of their geographical location also. It is so frustrating that a department of regulation can't regulate properly. I encourage you to write or email Ms. Sink and tell her your feelings. The storefronts are strictly regulated here and these internets are unfair competition to them because they over rollovers that are not permitted here. Are you referring to the Florida Dept. of Financial Services or FLDFS or is that a different agency?

now, i was told that one of my pdl was licensed in another state so according to my state laws as long as they are licensed i have to go by the laws of the state they are licensed in.

Frog-I was just thinking of your when I saw this thread.

And in case anyone needed to know, there are states that allow a PDL to operate legally as long as they are licensed in some other state. PA is one state that allows this.

You can't be prosecuted in Florida for defaulting on a pay day loan. Don't let anyone tell you differently.

that's correct.

Yes, I am referring the the Florida Department of Financial Services. I will contact them again and try to find someone with authority to answer specific questions. Thanks

tfarris - Also check out the sticky "Payday Loan Laws made Simple". It's got some emails from the Florida DFI about internet payday loan laws.

The CFSA who is the membership organization for Payday lenders requires internet lenders to be licensed in every state they lend in. Why do they require it? Because many states do. That is why almost no internet lenders are members of that organization. Here is what it says:
Internet Lending. A member that offers payday advances through the Internet shall be licensed in each state where its payday advance customers reside and shall comply with the disclosure, rollover, rate, and other requirements imposed by each such state, unless such state does not require the lender to be licensed or to comply with such provisions, or the state licensing requirements and other applicable laws are preempted by federal law.

I had a PDL turn me down because I lived in Florida and they were not licensed here.