illegal/unlicensed pdl's

Hi Laura,

I am going to post the law's for TN for you, then I will do a little research.
[quote]Quote:
Tennessee State Information
Legal Status: Legal

Citation:
Tenn. Code Ann. ????45-17-101 et seq. and Tenn. Comp. R. & Regs. ???? 0180-28-.01

Loan Terms:
Maximum Loan Amount: $500
Loan Term: Max: 31 days
Maximum Finance Rate and Fees: the lesser of 15% of the check or $30
Finance Charge for 14-day $100 loan: $17.65
apr for 14-day $100 loan: 459%

Debt Limits:
Maximum Number of Outstanding Loans at One Time: 3 (2 per licensee)
Rollovers Permitted: None (cannot renew or otherwise consolidate)
Cooling-off Period:
Repayment Plan:

Collection Limits:
Collection Fees: One $30 NSF Fee; Court Costs
Criminal Action: Prohibited

Where to Complain, Get Information:
Regulator: Tennessee Department of Financial Institutions
Address: 511 Union Street, Suite 400 Nashville, TN 37219
Phone: (615) 741-2236
Fax: (615) 532-1018
Regulatory Contact: Bart Daughdrill,
http://www.tennessee.gov/tdfi/


Email to and from TN Banking Dept

Hello,

I'm trying to make sense of the payday loan laws in Tennesse. How would I go about calculating the allowable interest?

Thanks!

Response

From: Steve Henley
Sent: Friday, March 02, 2007 1:08 PM
To:
Subject: Re: calculating pdl interest

Dear Ms , technically it is not an interest rate but service fee and this is how it works. The fee cannot exceed the lesser of 15% of the check amount or $30. So if you have a check amount for $100, the service fee would not exceed $15 (15% x 100). Keep in mind the fee is on the check amount, not cash amount. If the consumer requests $100 in cash, the check amount would be $117.65. The check amount of $117.65 x 15% equals $17.65, and cash is $100 ($117.65 - $17.65 = $100). If the customer asks ... "how much should I write the check for if I want $50?"

You can back into the check amount by taking $50 and dividing it by 85% or .85. In other words $50 divided by .85 = $58.82. You can verify by multiplying $58.82 x 15% = $8.82 service fee. $58.82 - $8.82 = $50.

Remember the service fee is limited to $30 on all checks exceeding $200.

I hope this helps but please let me know if you have other questions.

615-532-6993 Steve Henley

Reply:

Hello,

Can you tell me if internet based payday lenders with no physical location in TN need to be licensed by TN to lend legally? Or would they only need to be licensed by another state? And which state's laws would they need to follow?

Thanks!

Response:

From: Steve Henley
Sent: Monday, August 27, 2007 8:12 AM
To:
Subject: Re: Internet Payday loans

Dear Ms , our statute does not address internet activity, but to obtain a license from Tennessee the entity must first have a physical location in this state.

Please let me know if you have other questions.

615-532-6993 Steve Henley

What does this mean?

They can charge 15% of the face value of the check in fees.

Rollovers are not allowed.

Internet companies do not need to be licensed by TN. As long as they are licensed in another state they can lend legally. They must follow the laws of the state they are licensed in.
[/quote]

United cash loans is not licensed anywhere. They are part of MTE. You can do a search in the above box and that may help you

Hi Laura,

This is what I have found so far, I'm not sure about some of the companies, so hopefully someone will correct me if i am wrong:

OneClickCash - not licensed/illegal
Oakmont Funding (Xpress Cash) - Licensed in Utah
Upfrontcash - not licensed/illegal
Paydaymax - not licensed/illegal
fastmoney911 - ??
NLSCashAdvance - not licensed/illegal
ImpactCashUSA - licensed/Utah
USFastcash - not licensed/illegal
UnitedCashLoan - not licensed/illegal

Hopefully someone will have some info on Fastmoney - I couldn't find much on them. I will post the laws for Utah for you, you will need to follow those for the 2 legal pdl's.

Here are the laws for UT, there's not much you can do about those 2, there's no cap on the interest & no limit to rollovers:

[quote]Quote:
Utah State Information

Legal Status: Legal (Applies to check cashers only)

Citation:
Utah Code Ann. ???? 7-23-01 et seq.

Loan Terms:
Maximum Loan Amount: No Limit
Loan Term: May not exceed 12 weeks
Maximum Finance Rate and Fees: No usury limit
Finance Charge for 14-day $100 loan: No Limit
apr for 14-day $100 loan: No Limit
Debt Limits:
Maximum Number of Outstanding Loans at One Time: No limit
Rollovers Permitted: Not Specified (cannot extend or renew loan more than 12 weeks from original loan date)
Cooling-off Period: None
Repayment Plan:

Collection Limits:
Collection Fees: Not Specified
Criminal Action: Not Specified

Where to Complain, Get Information:
Regulator: Utah Department of Financial Institutions
Address: 324 South State Street, Suite 201 Salt Lake City UT 84111
Phone: (801) 538-8830
Fax: (801) 538-8894
http://www.dfi.utah.gov/
[/quote]

I have 2 interent pdl 1 with cash advance network 2 with nationwide cash. I borrowered 650 with cash adv ntwk and have paid over $700 in roll-over fees I borrowed $500 from nationwide and i sstill owe them $200 and I've paid them about $700 as well. I live NC and I have closed my acct woth my bank that they where drawing off. what do i do now

Hi mblink62,

Payday loans are illegal in NC. If you have overpaid the 2 companies, then you are done with them. Closing your account is a good first step. If you do a search on this website, you can find a letter to send them revoking your authorization to debit your account (which you have already done) and any wage assignments you may have signed. You are also advising that all future contact must be through email or mail only. Because you have overpaid them, you can also ask for a refund, it may not work, but it never hurts to try.

I would also file reports with the BBB, FTC & NC attorney general

I live in kentucky and I have a loan with VF Funding amt given to me $250 with a $75 fee. This loan was taken out 8/22/08 since then every 2wks I've been paying the fee for a total amt paid of $450. This past week they took out $30 plus the $75 fee. I am planning on closing my acct but what else can I do?

So if the pdls' are illegal/unlicensed do I only owe them the amount that I borrowed less what they have already deducted from my account? I really need help so I can get out of this mess. I am sending out the cease & desist letters and will figure out how much has been paid on each one. Just needing some help.

You owe the amount you received minus what you have already paid, whether in fees or if you paid any down.

Hi mblink62 again...I closed my bank acct and informed the first of the payday lenders that what they have done is illegal and I am filing a complaint with the AG office in Raleigh NC. they then wrote me back telling me to call and them to make an settlement offer....Ive already paid these bozo's $780 on a $650 loan....what do I do now? I've told them if they want to discuss this matter it needs to be done via email or mail