Difference between legal and illegal loans

exactly,the one legal storefront of mine.ALL CREDIT LENDERS,yes they took a garnishment against me because i couldn't invoke the EPP.my income wasn't enough to do it at the time.all credit tried to work with what i could pay but chose to garnish,i didn't fight it.that is the only one that acted reasonably and legally.

Another thing - When the lender is licensed, your state's regulatory authority has options to make them comply with the law if they aren't. It's illegal companies they have more trouble with.

With legal companies you have many avenues to go down if the company does something they shouldn't. It's the total oppsoite of the illegal companies.

This is probably a dumb question but how where do you find out which companies are legal and which are not? Is there a list on each state's website?

Each state's website should show licenses.

Also, you can ask here and people can help look for them.

Are any of these legal? I have not contacted ACH processors, but I have sent form letter to each that I have overpaid. I live in Massachusetts, where would I find them listed?
Cash Direct
Cash First
Arrowhead
Total Lending
Loan Shop
Loan Point
500 Fast Cash
One Click
CTC
ameriloan
Cash Net/NLS
M1Y
My Paycheck

You can Check Here by state. :)

I haven't checked, but by looking at those company names I'd venture the guess that none of them are licensed.

Another thing - You have to be careful when searching for a license. Sometimes it's under another name, like the companies corporate name. And sometimes companies are CSO's, not pdl's, and then they don't need a license, only a registration with the Sec of State.

What are CSO'S? How do I search the State website for this, it does state that PDL'S are prohibited in MA, but I don't see a list of legal lenders...

I am not sure if it is useful but you might want to check out this site
www.whois.com

Just type each website under the search and it will display the site owner's name and addresses :)

Most pdl's are registered in whois as Domains by Proxy . . . . Not much help.

None of them will the licensed in MA because MA doesn't license these types of companies.

I just got a response from Cash Direct saying i was in collections, I over paid by 18.00 by paying the extension fee weekly, then they sent a copy of the loan docs which i have. What do I tell them now? I told them Ma laws prevail but that didn't matter.

goudah....question about ohio laws. Are internet payday loans illegal there or is it that if licensed elsewhere they are legal?

Internet loans are not illegal - But they would need an Ohio license. There are legally licensed internet companies that operate in Ohio.

If I paid the principal amount by paying rollover fees for months would that mean I do not owe anymore on these PDL'S? I am very confused by all this it is very overwhelming!

I just spoke with the Central Regional Supervisor of the Department of Financing, she referred me to the consumer division and I left a message. I'm becoming confused about what type of license is actually required to lend IPDL in Ohio myself. I understood that as long as an IPDL had a license, they could loan to Ohio residents, looks like I may be wrong! Sorry guys if I've given out the wrong information, but for my own peace of mind I am checking with the Dept of Financing. lol :?

Goudah is right about the processors. They are a means to stop companies that refuse to acknowledge your right to revoke authorization. However, with certain repeat offenders I would suggest revoking authorization and copying the processor. That way, if they do not respect it, your methods were well documented. That does not mean call the processor and expect them to bully a PDL into a PIF. Copying them as well will also make them more likely to comply and not ignore you. Just a thought.
I think it's correct to say that the problems are the illegal lenders, not the legal ones. With them, anything goes. Protect yourself accordingly.

I need help with this. I don't know what steps to take next. They keep telling me that the extension fees mean nothing as far as what i have paid so far.

The Department of Finances just returned my call and this is what was told to me. Ohio residents can't be prosecuted by any Internet lender which does not hold a license in Ohio. They only regulate IPDL's who have a license in Ohio. I just wanted to hear it from the horses mouth. lol It's so easy to become confused about what is or isn't legal, etc. :?

That is correct - They must have an license from Ohio to lend legally to Ohio residents.

Guest - Thank you. That is exactly the point I was trying to make.

With legally operating companies you have many more channels to go through IF there is a problem. It's the illegal companies that people have a hard time with.

Any info on paydayavenue.com? Haven't heard anything about them

Btw, Goudah, say hi once in a while. Some people actually may worry about you once in a while -J

Same to you! I've been really busy lately, but you could always drop me a line too! :D

goudah. . I don't necessarily agree with not contacting the processors if the PDL is honoring the revocation. I had revoked, they were not debiting, but I didn't want to take any changes that they would at any given time. I wanted to take that power away from an organization and be in control of my own money. In fact, once I closed my account in February, I notified all my "legal" ACH's that my account was closed and I was not going to re-establish direct debiting on my new account. I now process through my own bank with them sending payments out of my account directly to the company that I want paid. An ACH revocation is on a volunteer basis and can be revoked at any time for any reason. There are other ways of making payments and that would be perfectly acceptable in repayment of a debt. Why tempt fate if you have an effective way of controlling it? I will, in all probability, never give free reign of my money, via my bank account, to anyone in the future. I see it as an extra measure, be it a legal or illegal debt.

momw22000:
Quote:

Lisa, I wasn't sure if you caught this or not, so I bumped it so hopefully you will see it. :)

I don't agree that you should punish a company that is doing what you ask. I feel that you should give them the chance to do the right thing, and if they don't, then contact the processor.

I feel it's playing dirty when you are dealing with a legal company that is doing everything it should under the law.

goudah . . .I did't have any legal PDLs as I am in New York. Like I stated in another post, I was told by the NY AG that prohibited was prohibited and I should move forward with my complaints. Are the legal PDLs charging a comparable interest amount or do they also have high interest rates? That is where my concern would lie.

Right - I was just talking in general with legal companies. Legal companies will usually do what the law says and stop debiting when you tell them.

There are legal pdl's that charge a ton of interest. Some state's have no caps on the interest rate, so in those states the pdl's could charge whatever they wanted to legally.

That is pretty sad. So, it would follow suit that in addition to trying to stop these guys, lobbying should also be for the powers that be to cap those interest rates, if they won't outlaw them.

Yeah, the majority of the state's now have at least some regulation, but there are still a few that give the pdl's free reign to charge what they want.

I would like to see them all shut down, but controlling what they can charge is better than nothing I suppose. I realize that people get into a bind and need a quick solution but preying on those situations is just wrong.