DC Laws

Hi sjj104,

Here are the laws for DC. I will check the companies you have listed to see if they are licensed, are they all internet?
[quote]Quote:
D.C. State Information

Legal Status: Legal (Applies to check cashers only)

Citation:
D.C. Code Ann. ???? 26-301 et seq.

Loan Terms:
Maximum Loan Amount: $1000
Loan Term: Max: 31 days
Maximum Finance Rate and Fees: 10% of face amount + fee of $5: $0- $250; $10: $251-$500; $15: $501- $750; $20:$751-$1000
Finance Charge for 14-day $100 loan: $16.10
apr for 14-day $100 loan: 419%

Debt Limits:
Maximum Number of Outstanding Loans at One Time: Not Specified
Rollovers Permitted: Not Specified
Cooling-off Period:
Repayment Plan:

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

Where to Complain, Get Information:
Regulator: D.C. Department of Insurance, Securities and Banking
Address: 810 First Street, NE, Suite 701 Washington DC 20002
Phone: (202) 727- 8000
Fax: (202) 535-1197
Regulatory Contact: Howard Amer,, Director, Banking Bureau


Emails to and from the DFI:

Hello,

Do internet based companies need to be licensed by DC to lend legally in DC? Or can they be licensed in their home state? I have several payday loans and they are all licensed in other states. They say they don't need a DC license. Is that correct?

Thanks!


Reply:

Hello Ms,

The old law required any deferred deposit lender to be physically located in DC. However, these laws were implemented before the internet became an issue. The department has taken the stance in the past that all deferred deposit lenders must be licensed by DC.

New laws have recently been passed specifically addressing the issue of internet lenders. Now, all lenders, regardless of location, must be licensed under the Money Lender Act. This law has just recently taken effect.

Sincerly,

Brian Rouse
Licensing Supervisor, Banking Bureau
Department of Insurance, Securities and Banking
810 First St. NE, suite 701
Washington DC 20002
202-442-7821


What does this mean?

Internet lenders, before and after the new law, must be licensed by DC.

No limits to Rollovers.

Specific amounts can be charged.[/quote]

Here is some more info for you:
[quote]Quote:
???? 26-901. Businesses required to procure license and pay tax; appointment of resident agent; service of process or notice.

(a) It shall be unlawful and illegal to engage in the District of Columbia in the business of loaning money upon which a rate of interest greater than 6% per annum is charged on any security of any kind, direct or collateral, tangible or intangible, without procuring license; and all persons, firms, voluntary associations, joint-stock companies, incorporated societies, and corporations engaged in said business shall pay a license tax of $500 per annum to the District of Columbia. No license shall be granted to any person, firm, or voluntary association unless such person and the members of any such firm or voluntary association shall be bona fide residents of the District of Columbia, and no license shall be granted for a period longer than 1 year, and no license shall be granted to any joint-stock company, incorporated society, or corporation unless and until such company, society, or corporation shall, in writing and in due form, to be first approved by and filed with the Mayor of the District of Columbia, appoint an agent, resident in the District of Columbia, upon whom all judicial and other process or legal notice directed to such company, society, or corporation may be served. And in the case of death, removal from the District, or any legal disability or disqualification of any such agent, service of such process or notice may be made upon the Director of the Department of Licenses, Investigation and Inspections of the District of Columbia

[color=Blue]They must be licensed to loan money in DC, and DC only licenses businesses that also cash checks.[/[/color]quote]

Based on the above info, unless any of your companies is a storefront and has a physical check from you, then they would all be illegal.

Thank you for your response. They are all internet.

I've seen a lot of conflicting information on DC laws. Do you by chance know if what you posted includes the changes made last year--I was under the impression the law passed in Sept. '07 held pdls to the same interest rate standards as consumer loans (either 24 or 26%)--virtually putting them out of business in the city. It doesn't specifically say that...

Another idiot question: I'm assuming an internet pdl falls under the definition of a "check casher? even if they don't hold an actual check?

You beat me to it!

No, an internet pdl is separate from a check casher. I'm not sure about the new law's, according to the info in my first post, under the old & new law's they must be licensed. I will check the date & see when the info was obtained.

this info was from Oct 2007:

[quote]Emails to and from the DFI:

Hello,

Do internet based companies need to be licensed by DC to lend legally in DC? Or can they be licensed in their home state? I have several payday loans and they are all licensed in other states. They say they don't need a DC license. Is that correct?

Thanks!


Reply:

Hello Ms,

The old law required any deferred deposit lender to be physically located in DC. However, these laws were implemented before the internet became an issue. The department has taken the stance in the past that all deferred deposit lenders must be licensed by DC.

New laws have recently been passed specifically addressing the issue of internet lenders. Now, all lenders, regardless of location, must be licensed under the Money Lender Act. This law has just recently taken effect. Sincerly,

Brian Rouse
Licensing Supervisor, Banking Bureau
Department of Insurance, Securities and Banking
810 First St. NE, suite 701
Washington DC 20002
202-442-7821


[/quote]

I looked up the names of the companies on the DC Banking website, none of them were listed