pdl's
Date: Thu, 11/13/2008 - 09:39
I'm new to this site and need some help. I live in Tn and I have 3 payday loans. The one here at home is Check into Cash, and 2 over the internet,Payday One and One click cash. I have had accounts with all of these for over 3 years. I never had trouble paying them til recently. I gave a medical bill collector my checking acct info over the phone and the next thing I knew was, they were taking out alot more for the payments than I agreed on. Well sure enough it got me behind and here we go. My bank which is a credit union closed my acct due to all the insuffient funds activity.The pdl's ring my phones off the hook. But I am more worried about what they can do to me.Can anyone help me understand what my options are with these companies. I owe Check into Cash 230.00. I owe 700.00 to Payday One. And only 65.00 to one click it was the last payment to them when my acct was messed up. Thank You
Hi TNlady, Here are the law's for TN: [quote]Quote: Tennes
Hi TNlady,
Here are the law's for TN:
[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.
You would need to make arrangements with the storefront company. I will check to see if the other 2 are licensed anywhere :D [/quote]
