PDL Loans
Date: Mon, 07/21/2008 - 08:56
Hello and welcome to the community!! I am moving this to the pay
Hello and welcome to the community!! I am moving this to the payday loan section so it will receive more attention.
It's a given that someone, if not many of us, have dealt with al
It's a given that someone, if not many of us, have dealt with all of these slugs. I know there is a loophole in the PA law so I am hoping that someone will post and interpret those laws for you. Hang tight.
Emails to and from PA Banking Dept [quote]Hello, I have a
Emails to and from PA Banking Dept
[quote]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.[/quote]
You can always just copy and paste what is above and put it in q
You can always just copy and paste what is above and put it in quotes . . . . . That way you don't have to worry about rewording anything. :D
Yeah, I think so. I replied to it. I've got 2 pm's to you in m
Yeah, I think so. I replied to it. I've got 2 pm's to you in my outbox . . . . Is your sentbox full?
PDL Loans
Thank you for the advice, I contacted my banks loss management and they sent me the form to fill out, and I did and sent it back to them, I also am going to tomorrow to close out my account. I cannot believe that these people can do this, if I would have known about this before I did the pdl loans I would have never done it, they are such a scam.
Not to worry. . . we all have said the same thing. Closing your
Not to worry. . . we all have said the same thing. Closing your account will at least keep your money safe. Keep us posted.
Be sure that you read this information before closing your bank
Be sure that you read this information before closing your bank account:
http://www.debtconsolidationcare.com/paydayloan/close-account.html
