Internet PDL - What laws do they follow?

Mom, Your state laws are the ones that prevail.They need to follow the state laws of kentucky.

Here, this may help explain things:

You will find the Payday loan laws for Kentucky here (just select your state),
http://www.debtconsolidationcare.com/paydayloan/explain-pdls-laws.html

Emails to and from the banking dept:

To Whom It May Concern:

I have a question regarding internet payday lenders. I have visited the Department of Financial Institutions site and found some information. However, I am still a little confused.

I understand that storefront payday lenders are legal in the state of Kentucky and have printed out the laws applying to them. However, there is nothing regarding internet payday lenders.

I did a search on the site to see if some internet payday lenders were licensed in Kentucky. No results came up for any of them. If the case is that an internet payday lender is not licensed in the state of Kentucky, what then?

Internet payday lenders are claiming they do not have to comply with Kentucky state law. They claim they comply with the law in which they are located.

If they are not licensed in the state of Kentucky to fund loans, are they not in violation of some sort of law?

Any help in this matter would be greatly appreciated. At the very least, it might clear up my confusion.

Thank you so much for your attention in this.

Response:

Internet payday lending is illegal in Kentucky.

Chris Thompson
Compliance Branch Manager

Reply:

I have emailed before regarding internet payday lending and received the reply that internet payday lending is illegal in Kentucky. Thank you for that information.

I now have another question. If an agency is attempting to collect on an internet loan - which was illegally funded - does the collection agency need to be licensed in the state of Kentucky? Is this even a legal debt to collect on?

Thank you for any information you can give.

Response:

I am not sure who if anyone licenses collection agencies. This Office does not consider it a legal debt as the entity was not licensed to do business in Kentucky.

Chris Thompson
Compliance Branch Manager

Reply:

I have viewed our state pay day law and understand that a store front pay day loan company can collect one NSF fee if your check is returned by your financial institution.

However, I have a question. How many times can a pay day loan company run the check through to your financial institution?

I have a pay day loan company that I am working on setting up a repayment plan; however, they keep running the check through my financial institution every week.

I was under the assumption that pay day loan companies may run the check through only once; however, I could be misunderstanding.

Could you please clairfy for me how many times a store front pay day loan company can run your check through your financial institution? I would like to be sure this company is following the law.

Thank you in advance for any answers/advice.

Response:

There is nothing in the check casher statute that prohibits the number of times a pay day loan company can run the check through; however, it is my understanding that banking law on allows a bank to do it only twice.

Chris Thompson
Compliance Branch Manager


What does this mean?

Internet based companies are illegal. They cannot collect on the debt through any means. Kentucky does not license them, and does not allow companies not licensed in KY to lend legally.

Storefronts can charge you 15% of the face value of the check.

Rollovers are not allowed.

A big Thank You! to Cannr for providing this information! :D

Thank you so much Goudah (and cannr for all the investigation work). I thought this to be true but paydayonline.com told me I did not know what I was talking about that since it was over the internet they did not have to follow KY laws.

FYI - When they call to talk they announce themselves as Officer so and so. I asked what kind of officer and they said financial officer. I explained that the director at my work that they spoke with thought it was an officer of the law and they should not do that.

What are your thoughts?

Yeah, you have to remember these companies lie. They want you to think you are confused. They want you to think you are wrong and they are right.

The info posted above comes directly from the KY DFI. They would know KY law better then paydayonline.

motomom, they are feeding you such B.S., my friend! Internet pdls are illegal for us. Period. They can claim all the gibberish they want to; however, it's all B.S. Straight from the mouth of our Department of Financial Institutions. And, might I add, not even considered a "legal debt" that can be "collected", so sorry about paydayonline's luck! If you need me, just send me a pm! :wink:

Thanks cannr. The guy says he is Mark Durham from Patrick Corbett Law office and needs to get some information verified before he acts on several affidavits, one being breach of contract. The payday lender is cash direct express. I paid these people so much money over the last 3 years. What is amazing is they can never provide you with a verification of the debt just a dollar amount. They need to be careful when buying these debts. I researched Patrick Corbett Law on the internet and it says he is up to his eyeballs in trouble. He is one of these "real lawyers" that sells his name to these collectors.

He has called my 76-year-old dad, exhusband and brother who I would never have listed anywhere as contacts for obvious reasons. My dad was terrified. That is reason enough for me to kick him to the curb.

Paydayonline is calling my department director and sayng they are officers that need to clear up a legal matter with me. It is so embarrassing. They even got rude with the office secretary telling her yesterday you let me talk to her and today she is not there. Needless to say my work is not very happy with these calls. Don't they know people need their jobs to pay their bills.

Hope you are doing well.

motomom, I think I posted to another thread of yours regarding Patrick Corbett (who is a friggin scam artist, big time). I think I provided a couple of links for you to check out regarding him. Now this pdl is Cash Direct Express? I think they were one of mine. If so, I'll have all the contact information of whom I worked with and I'll post it for you. They were pretty painless to deal with. However, they didn't turn me over to anyone. I just dealt with them. Hang on and I'll dig out my crap and find it. :wink:

P.S. - Regarding the calls to your work and family members, you can always tell them that an illegal company got ahold of your identity/information and are now trying to scam you. That's what worked for me. I claimed that somehow someone got my information off the internet. At least this might make your employer not as pissed when these idiots call there.

Okay, motomom. I found it. Oh, I'm having FLASHBACKS now! Here is some contact information. Try emailing this chick. She worked with me and was actually half way nice.

CASH DIRECT EXPRESS
GECC LOAN
300 Creek View Road
Suite 204
Newark, DE 19702

Tracy L. Callaway
Customer Relations Supervisor
302-737-0926 ext. 302 - work number
302-737-3873 - fax number
TCallaway(at)GeccLoan.com - email address

This is a completely different address than what they give out. This address is totally legit. I sent things there certified and they were received. I think this is their "real" address that they don't want everyone to know about! :lol: