I need info regarding 2 PDL loans in PA

Hello Benzo and welcome to the community! First of all, please list the following information so we can help you. I will be moving this topic to the payday loan section where it will receive more attention. :D
-Names of each pdl company.
-Whether they are store front or Internet
-How much you borrowed.
-How much you paid so far.
-The state in which you reside.

HI. Here is my PDL info:

CASHNET(internet) - principal = 1100.00
pd 275.00 refin charge

Cash Central(internet) -principal = 900.00
Pd 225.refin charge


I live in Pennsylvania. I stopped making payment last week friday. So, far the bank manager says my account is safe from debits. And i have new accounts. Any help would be greatly appreciated.

so you made one or two int payments?or is that
the int payment each period.was that the total
paid?just asking.

Hi. I took the principal loan and then refinanced it , so i had to pay the refi charge. At least that is what they call it. Anyway, I did it with both companies. So as far as they are concerned I have only paid the refinance charges and not the principal.

They allow 4 refinances before the total principal is due. I refinanced each one 2 times but I only paid the refinance charge once before i stopped paying. So they tried to take the 2nd refinance charges but they didn't go thru. Also, I have been recycling these 2 loans for at least 1 year. And I couldn't figure out how to stop it. I did figure out that i needed to stop the debits so I could get a grip on them. Then i found your website and figured I was on the right track to getting out from under.

these look like illegal pdl's.that means any money period goes toward the principal.how many times did you pay a supposed finance charge?

well what happened was I would refinance 4 times then pay the principal plus the refinance charge then i would borrow the principal again. So this last time i applied for the loans and i only paid 275 for one and 225 for the other.

If i am understanding things here... if the companies are illegal then any money i have paid over the principal amount was illegal, and should be refunded? I am thinking about the past loans i have taken from these companies.

Hi, I haven't heard anything from anyone on here lately... I have a need to talk about this mess anyway. It helps to know that others are in the same boat as I am. I checked and the PDL's are legal here in PA, so I wrote both of them a letter asking for payment arrangements. From what I have read here both companies can be difficult to deal with so i will document my dealings in case anyone else can help or benefit. Tomorrow I am going to my bank to try and revoke the ACH priviledges. I also requested a CHEXSYSTEMS report to see if there has been any inquiries, since I read that they can possibly use the report to locate my new accounts. I'm expecting this to be painful since the loan amounts are really high.

Legal :shock: I could be wrong but as far I know pdl altogether is illegal in PA.

However, you're moving in the right direction. Get your old account closed and revoke ACH, it'll stop further draining of fund form the account.

To avoid chexsystem enquiry, find out a bank or credit union in your locality which doesn't use one. Dollar bank is such such bank, which doesn't refer to chexsystem before opening a new account. There are many others too.

Hope the input helps. Let us know if you need further assistance.

CashNetUSA is legal and therefore, you need to pay back the principal. I am dealing with them now. Call them and arrange payments on principal and see if they bite.

I do not believe Cash Central is licensed.

In PA, if the company is licensed in their state, then its ok in PA, unless they have a physical presence (store, company) then they need to abide by PA law

Cash Central IS licensed. They would need to follow Utah law.

Cash Net USA IS licensed, and would need to follow Nevada law.

Both the companies you are dealing with are totally legal, and can take steps to collect on this debt.

In PA, an internet based company is legal as long as it is licensed in ANOTHER state and does not have any physical locations in PA.

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

Emails to and from PA Banking Dept

Hello,

I have a question about payday loans in Pennsylvania. Does the small loan rate cap of $9.50 per $100 per year discount or 24% per year apply to these loans? I took out a few on the internet and am trying to figure out how much I legally need to pay. For instance on a $200 loan would I be legally responsible for paying back only $248?

Thanks!

Response:

Dear Ms.:

The 9.5 discount and the 24 % simple interest refer to calculations that can be used by companies that are operating in Pennsylvania and are licensed under Pennsylvania????????s Consumer Discount Company Act. With a number of exceptions, a lender that is located inside of Pennsylvania and who does not have any special lending authority (i.e., a special license or charter) who is making smaller loans not secured by real estate can only charge interest at a rate of 6% simple.

A lender that does not have a physical presence in Pennsylvania but who has lending authority from some other state can generally charge the interest rate and finance charges allowed by that other state.

The Department may or may not be reviewing this policy and I would not count on this e-mail as an interpretive opinion before starting any lending or business operations.

James Keiser | Administrator Non-Depository Institutions

17 North Second Street, 13th Floor | Hbg PA 17101
Phone: 717.783.8242 | Fax: 717.787.8773
jkeiser(at)state.pa.us | www.banking.state.pa.us

What does this mean?

There are no storefronts in PA. They are illegal.

Internet lenders can lend legally to PA residents as long as they are licensed in another state. They would need to follow the laws of the state in which they are licensed.

Hi, Thanks for the reponses...I just got off the phone with Cashcentral. They are licensed in UTAH so they are legal. They said that since my loan has not defaulted yet they cannot set up a payment plan for me. The only thing they can offer now is a refinance of the principal for 245.00. Then that would give me 14 more days to get the principal up. Another thing they said is that EPP are not mandatory in PA so they don't have to offer me an EPP. SIGH, I haven't talked to CashNet yet. I don't want to refinance again but it looks like i have no choice at least with cash central. I did look over my contract with cashnet located in Nevada and they do state that after default they must offer a EPP of at least 90 days. So, I may just try to pay cash central in full first and make payment arrangements with Cashnet.

That sounds like a good plan! Good luck, and let us know if you need any help or have any questions along the way! :D