Desperate for PDL help in PA

one question


1)how much paid back to each total

one thing about PA pdl laws is if the pdl has a license anywhere those laws do apply.cashnet usa is legal and you should go about working with them.the others i don't know if
they are licensed or not.someone else should be along with that
info shortly.

I haven't paid anything so far.
I will not send any money without a real mailing address.
I told them I will send them as much as I can, as often as I can.

In PA, PDLs are prohibited. Have a look at the legalities related to PDLs in PA: -
Quote:

In Pa if a Pay day lender is licensed ANYWHERE it is legal in PA and the laws of the licemsing state must be followed. Please be certain of info before you pass it along. people can get into worse trouble if misinformation is given out

I already called the Dept of Banking in PA and was told they are still working on getting payday loans outlawed in PA but as of now, consumers don't have much protection. The only hope is to find out that possibly the company you are dealing with is operating illegally.

That is correct kak - If they are not licensed in any state, then they aren't legal to lend.

The ones that are licensed by another state would need to follow the laws of the state they are licensed in.

And the guest is correct - Misinformation can cause huge trouble. If someone thinks a loan is illegal and it's not, that can lead to big trouble.

[quote]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.[/quote]

The above quoted info is MY info, but Admin here seems to think everything needs to be in quotes now, even if it's your own words . . . . :twisted:

One thing I always got when arguing with these people was about how interest rates under state laws don't matter becuase they are 'extension fees' ...does that hold up? they pile hundreds and thousands of dollars in these fees up all the time...in the court of law would that be allowed?

Does anyone have any info on the companies I listed?
I'm hearing that Cashnet USA is legal so far.
I am checking out my cash now with the people in the state of Tn. This lender is physically located in Tn yet collecting it's money under the name of Credit protection Depot in the state of Nevada. Neither state seems to have a license under either name.
Does anyone have any info on the others?
Thanks!

no it wouldn't hold up,in fact being illegal they cannot charge
those rollovers at all.that is why they collect like they do they
don't have a leg to stand on and count on intimidation and the
consumer not knowing there rights.

this was in response to extension fees question.

kak. . you are right. Credit Protection Depot strong arms for my cash now. They were operating out of Vegas when I was dealing with them in the spring, by anyaroberts has info that indicates they have "bugged out" of there. I had an email address that came directly from them, but that too seems to be undeliverable at the moment. You are more than welcome to try if you would like "CPDCustomerService@CreditProtectionDepot.com" I do have a phone number and a fax number you could try as well. That seems to be the only mode of communication that is currently going anywhere. I can tell you that the person in charge of CPD is Mr. William Reed (or at least he was unless he got kicked to the curb as well) but it's worth a try to use his name. The number is 1-866-645-1661 and the faxt is 1-866-645-1662. They don't respond to any communications at any addresses that the BBB has so I would try the phone route/fax route. Hope this helps.

my cash now sent me a letter via email attempting to be threatening-I'm not falling for it.
They also asked that I send them their money via Western Union with all of my personal info (including my SS#).
I don't think so!!!
Until they send me correspondence via USPS as I requested, proof that they are licensed, and a legitimate physical address to send payments, they won't see a dime.

Strongly suggest you check the PA Department of Banking's website. They just issued a new policy yesterday about internet payday loans. I'm no expert but it looks like they're saying that anyone that is already making loans from another state is legal until next year when the new policy goes into effect. Here's the link. http://www.banking.state.pa.us/banking/lib/banking/news_and_events/pa_bulletin_notice_re__cdca.pdf

That is great news! :D

[quote]July 28, 2008

NOTICE TO THOSE ENGAGING OR CONSIDERING ENGAGING IN NON-MORTGAGE CONSUMER LENDING
TO PENNSYLVANIA RESIDENTS:

The purpose of this Notice is to advise all interested persons that it is the position of the Commonwealth of Pennsylvania
Department of Banking (the ???????Department???????) that engaging in non-mortgage consumer lending1 to Pennsylvania residents by
any means, including via the internet or by mail, constitutes engaging in such business ???????in this Commonwealth??????? as
contemplated by Section 3.A of the Consumer Discount Company Act (???????CDCA???????), 7 P.S. ???? 6203.A. As such, any person2
engaged in the business of negotiating or making non-mortgage loans or advances of money or credit of $25,000 or less as
principal, employee, agent or broker to consumers in Pennsylvania in which the aggregate interest, discount, bonus, fees, fines, commissions, charges or other considerations (together, the ???????Charges???????) exceed 6% simple interest per annum3 is
required to obtain a license from the Department under the CDCA. A person licensed under the CDCA is authorized to
negotiate or make loans to Pennsylvania residents pursuant to the rates, terms and conditions contained in the CDCA.
Non-depository entities engaged in non-mortgage consumer lending to Pennsylvania residents in which the Charges
exceed 6% simple interest per annum that are not already licensed under the CDCA must be licensed under the CDCA by
February 1, 2009, or cease such lending to Pennsylvania residents. This allowance of time to become licensed under the
CDCA or to cease such lending practices is in consideration of existing customer relationships and to provide the
consumer lending industry with sufficient time to adjust to the Department????????s expectations.

Non-depository entities that are not engaged in non-mortgage consumer lending to Pennsylvania residents as of the date of
this letter, and who are not currently licensed by the Department under the CDCA, but who wish to become eligible to
engage in non-mortgage consumer lending to Pennsylvania residents in which the Charges will exceed 6% simple interest
per annum, must immediately apply to the Department for a license under the CDCA and must refrain from making any
consumer loans to Pennsylvania residents that include Charges which will exceed 6% simple interest per annum unless and
until such application is approved and a license is granted.

As a matter of background, the Department previously took the position that a non-depository entity that did not have any
offices of any kind in Pennsylvania or people physically present in Pennsylvania acting as principal, employee, agent or
broker was not ???????in this Commonwealth??????? as that term is used in Section 3.A of the CDCA. Thus, under the prior position,
such an entity would not be required to obtain a license under the CDCA in order to originate non-mortgage consumer
loans via the internet or mail to Pennsylvania residents in which the Charges exceeded 6% simple interest per annum,
provided that the entity was licensed or otherwise authorized under the entity????????s home state law to engage in this type of
lending activity. However, with the prevalence of internet-based lending activity, it has become clear to the Department
that the prior position has resulted in Pennsylvania consumers being exposed to the very lending practices that the CDCA
was enacted to protect them from.

Based upon the foregoing, the Department is convinced that a change in policy is warranted, and licensing under the
CDCA should be required for all non-depository entities engaging in non-mortgage consumer lending to Pennsylvania
residents in which the Charges exceed 6% simple interest per annum. This will provide Pennsylvania consumers with the
1 Mortgage lending activity involving Pennsylvania residents is governed generally by the Mortgage Bankers and Brokers and Consumer
Equity Protection Act, 63 P.S. ???? 456.101 et seq., and the Secondary Mortgage Loan Act, 7 P.S. ???? 6601 et seq., unless the lender is a depository
institution. Certain kinds of secured non-mortgage consumer loans are governed by the Pawnbrokers License Act, 63 P.S. ???? 281-1 et seq.
2 A ???????person??????? is defined in the CDCA as including ???????an individual, partnership, association, business corporation, nonprofit corporation,
common law trust, joint-stock company or any other group of individuals however organized.??????? 7 P.S. ???? 6202. The term, for purposes of the
coverage of the CDCA, does not include depository institutions. See 7 P.S. ???? 6217.
3 Unless licensed under the CDCA, a lender that is not a depository institution is restricted to charging the general usury rate of 6% simple
interest per annum on non-mortgage loans of $50,000 or less found in Section 201 of the Loan Interest and Protection Law (???????LIPL???????), 41 P.S. ???? 201.
protections available under the CDCA regardless of whether lenders are located in Pennsylvania or other states. Therefore,
the Department????????s prior position regarding the licensing requirements for out-of-state consumer lenders under the CDCA is
discontinued and any supportive Department precedent regarding the prior position will no longer be followed. As such,
licensing under the CDCA for non-depository entities is now required to engage in non-mortgage lending to Pennsylvania
residents in which the Charges exceed 6% simple interest per annum by any means, including by mail or via the internet.
As noted above, a transition period is provided for any non-depository entity currently engaging in the practice of nonmortgage
consumer lending to Pennsylvania residents in which the Charges exceed 6% simple interest per annum,
although those entities interested in beginning to engage in non-mortgage consumer lending to Pennsylvania residents in
which the Charges exceed 6% simple interest per annum must immediately apply for a CDCA license and be approved by
the Department before beginning the practice. Please be advised that any non-depository entity that engages in consumer
lending to Pennsylvania residents in violation of the CDCA may be subject to enforcement action under the CDCA and
LIPL.

Any questions regarding this Notice may be addressed to the Compliance Division of the Bureau of Compliance,
Investigation and Licensing at (717) 772-3889, or you may send inquiries via the Department????????s website at
www.banking.state.pa.us.

STEVEN KAPLAN,
Secretary[/quote]

This is really wonderful news for PA! Hooray!

Freaky-thanks so much for the info!
I did check the website and you're right.
As of Feb. 2009, if they are not licensed in PA they cannot do business here.
Also, I have been doing some digging on EZ Payday and just got an email from a state office in Utah and so far they do not have them listed as being licensed or at the address they have listed.

That info wouldn't make any difference for anyone that already has loans in PA or takes out a loan before Feb 1, 2009.

Fastwire is legal, and licensed in a bunch of states. I'm not sure which license they are using for PA residents.