legality of payday loan company

Hello Goudah,

So I have a list for you to reference for me.

ameriloan
CTC and Sonic Cash
365fastcash.net
Little Loan Shoppe
PayDayMax d/b/a Credit Protection Depot
MTE Financial
AIP
World Wide Cash

I have reserached and found most of these are ILLEGAL. By your research is this true? Thanks. :roll:

MTE and it's dba's are not licensed anywhere.

ameriloan is not licensed anywhere.

365fastcash is not licensed anywhere.

There are a couple different Sonics. There is a Sonic Cash that is legal and licensed in Idaho.

Little Loan Shoppe is licensed in Utah.

AIP is not licensed anywhere last I checked.

World Wide Cash and Payday Max I haven't looked into, so I can't say for sure on those two.

Is there a way to do a sticky that list all the illegal companies that do not have license in the US?

Problem with that is it changes, and can be different for every state.

I wouldn't want to make a list that could confuse someone into thinking a company was illegal when it wasn't for them but was for other people in other states.

Thank Goudah. Correct me if I am wrong, but doesn't the consumers state laws supersede in payday lending. For example, is company A lends to Mr X, doesnt Company A have to follow Mr X's stats laws??

It depends on the state. I'd say that is correct for 85% of the US States.

Most state's have long arm statutes that give them jurisdiction over any business done in their state. But not all state's have these kind of laws.

It varies from state to state. Some states allow the laws of the geographic location prevail. Goudah has a list of those!

I have a list of the one's I know of . . . But I haven't checked out every state yet, so the list is not complete.

Well I thought she did!

OK. What about the state of Virginia? Here are the laws if you let me post them.
[color=DarkBlue][size=9]Virginia State Information

Thanks for the clarification. I know this subject came up yesterday when I inquired about ameriloan and Route 66 Lending (which is now B.I.G.). How can I find out if Ameriloan and B.I.G. are CSO's in Texas?

Goudah, I thought that there were some pdl's that are totally illegal in every state...is there not? Just curious....

I know I had to depend on the community to help me determine which ones were legal and illegal...but I guess that's what the forum is here for...just thought it would be easy for all to have a place to go to see exactly the ones that were not even legal in the US..

It was a thought, and would be nice...as always though; thanks so much for what you and the others do in this community, I know that for me I wouldn't be where I am now if it wasn't for you and the others...

A huge thanks.

I have not checked out Virginia, so I can't comment on that one.

I won't post about the laws of a state until I've got the interpretations in writing from the state regulators. 5 people could read the laws you posted above, and come up with 5 different interpretations. You need to know how the state reads those laws.

lujano - Neither of them are CSO's in Texas. In the future, you can check CSO registrations in Texas on the Secretary of State's website.

Your help is very much appreciated!! I will keep you posted on my outcome.

Ok. So if I have overpaid many of these illegal loan companies listed above by hundreds, and filed complaints due to my state laws. Am I wrong for doing that. Now I am a lil confused. I know va laws state no rollovers and PAR rates of 390%. Many of these companies apr rates were through the rough of 438% and higher after doing my research. Is this wrong?

No, I don't think you are wrong for doing that.

I'm just saying that personally, I haven't looked into VA's laws so I won't interprete them. I won't comment on something until I've researched it enough to know that it's correct. But that does not mean you are not right in what you are doing.

wanted to check on cashadvanceusa, are they legal? i am in texas, but they have been threatening me, and saying they are going to my city police, and file a complaint. i asked for the phone and mailing address, they refuse to give me that info, they told me to send money western union

OK. Thanks again Goudah :)

I believe I may have done this with Myloansusa. I did not believe (nor did anybody on the site) that they were licensed. It turns out they were licensed in Illinois, but not in Minnesota.

I have overpaid by more than $400. Does the situation change now that they are licensed SOMEWHERE, and how?

Yes, Minnesota is one of the states that does not have a long arm statute.

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


Emails to and from the MN Banking Dept:

From:
Sent: Monday, March 26, 2007 3:44 PM
To: Financial.Commerce(at)state.mn.us
Subject: Payday loan questions

Hello,

I have a question about internet payday loans. Do these need to be licensed in MN to be legal? Also, how do I calculate the legal amount of interest they can charge me according to MN laws? I see the laws state:

Maximum Finance Rate and Fees: $5.50: $0-$50; 10%+$5: $51-$100; 7% (min. $10) + $5: $101-$250; 6% (min. $17.50) + $5: $251-$350 (After default: 2.75% per month)
Finance Charge for 14-day $100 loan: $15
APR for 14-day $100 loan: 390%

So for a $300 loan how would I calculate the interest? And since no rollovers are allowed and the companies I have loans with have rolled them over countless times, would I be correct in saying that they are breaking the law? I've been told by several of them that they don't have to follow MN laws, even though they solicited me, because they are licensed in the state that they are located in. Is that correct?

I really appreciate any help or direction you could give me!

Thanks!

Response:

From: Terry Meyer
Sent: Tuesday, March 27, 2007 6:40 AM
To:
Subject: FW: Payday loan questions

First we don????????t license lenders that are domiciled in other states. Minnesota law does not have a long arm statute and allows residents to seek loans wherever they want. Solicitations via the internet or ads do not place the lender in Minnesota, only a physical location would [the exception being residential mortgage lenders].

The way to calculate the APR for a 14 day loan is either using a T-I calculator. A fast check using the example for a $100 14 day loan is;
$15 finance charge divided by the $100 loan [proceeds of the loan, or amount financed] = .15, or 15%
.15 divided by the number of days in the loan, or 14, gives you the daily rate of .0004109589
Multiply that number by 365 [days in the year] = 3.91071428415, or 391.07% APR

Does that help ???????? and in Minnesota rollovers or refinancing is not permitted. Name the MN lender and file a complaint.

Reply:

From:
Sent: Tuesday, March 27, 2007 8:45 AM
To: Terry Meyer
Subject: FW: Payday loan questions

Terry,

So to make sure I understand this, a payday loan company located in another state doesn't have to be licensed to lend to MN consumers. But do they have to follow MN laws about rollovers and interest? Or can they follow the laws of the state in which they are located in?

Thanks for you help!

Response:

From: Terry Meyer
Sent: Tuesday, March 27, 2007 6:58 AM
To:
Subject: RE: FW: Payday loan questions

It is similar to credit cards ???????? I would bet, assuming you are a MN resident, that none of your credit cards are from banks located in MN. The Supreme Court ruled in both 1978 that rates, and 1996 that fees could be imported for credit cards issued by out of state lenders to other states borrowers. Its agency law. The use of the laws of the state in which the lender is licensed is required.

Please explain your interest and the firm you represent.

Reply:

From:
Sent: Tuesday, March 27, 2007 9:04 AM
To: Terry Meyer
Subject: RE: FW: Payday loan questions

Terry,

I don't represent any firm. I was just trying to get some more information about the laws governing these kind of loans. The reason I was curious about the specific point of if state law governs out of state pdl's is because where I live, Oregon, they do have a law saying that out of state pdl's much be licensed in OR and follow the laws of OR. I was hoping the same thing applied to MN, because in that case all his pdl's were grossly overcharging him.

Thanks!

Response:

From: Terry Meyer [
Sent: Tuesday, March 27, 2007 7:30 AM
To:
Subject: RE: RE: FW: Payday loan questions

Good luck ???????? we recently received a complaint on a Payday loan from Malta. Since MN doesn????????t have a law like OR each state would have to be contacted for their payday loan law to determine if a violation occurred.

What does this mean?

There are very specific rates they can charge you depending on the amount loaned.

Rollovers are not allowed.

Internet companies can lend legally as long as they are licensed in another state. They must follow the laws of that state.

So does that mean that I'm not allowed to roll-over, based on my State Laws, and that I still should not owe due to the fact that I incurred $360 in fees due to extensions on loans, or am I reading that wrong?

No, that what that means is that if the company is licensed in another state, the transaction would be governed by that state's laws. MN's laws would only come into play if the company was licensed there.

Since the company is licensed in another state, it would be that state's laws that would need to be followed.

How does one go about searching a company? I really want to find out if Payday Max is legal to lend in Iowa. They did allow me to rollover and only pay the interest which is illegal in Iowa. So, if they are legal in Iowa but they permitted me to rollover - then what do I legally need to repay? Thanks for any info!