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Date: Mon, 01/12/2009 - 07:19

Submitted by 1susan1111
on Mon, 01/12/2009 - 07:19

Posts: 46 Credits: [Donate]

Total Replies: 23


Here's what I got in response to a PIF request...I have paid more than 1000 more than was what I have recieved. Thanks again for the help.

This letter is in response to your email correspondence dated January 7, 2009, concerning your loan. To clarify, PayDay One of Delaware, LLC (PayDay One), is a limited liability company, organized and operating under the laws of Delaware under its small loan license which is issued and regulated by the State of Delaware. PayDay One is an on-line lender and has no presence in the Commonwealth of Kentucky. As you expressly agreed to in your loan agreement, your PayDay One loan was funded from, and will be repaid to, PayDay One’s bank account in Delaware. Delaware law applies to your loan and accompanying documents.

As you requested, we have removed your contact numbers from our system and we will make no further ACH debits from your account. Currently, you remain obligated for the balance on your loan. I have asked our Account Services department to contact you via email in order to work out a suitable repayment plan so you may resolve your account.

If you have further questions or concerns, please feel free contact me via the mailing address or email listed below.


Hi Susan,

Here is some info from your previous thread:
Quote:


Payday One is legal, are you sure you rolled over your loan with them, or did you pay them off and re-loan, it surprises me that they allowed you to roll over since they usually follow the law, you will need to work out some type of payment arrangements or they could sue you. You might want to request an extended payment plan on your current loan. If you are certain they have rolled over your loan, I would send them a copy of the pdl laws and inform them that you are going to report them to the Federal Trade Commission, and your Attorney General's office if they don't correct it. But make sure they DID roll over your loan before you report them.


If they are going to offer you a payment arrangement, I would see if you can afford it and go through with it. As Shazzers had said in the above post, they are legal and can take action against you.


lrhall41

Submitted by dawnlango7 on Mon, 01/12/2009 - 07:30

( Posts: 1147 | Credits: )


Internet loans are illegal in KY.

Here is some information from another thread.

Quote:

Emails to and from the banking dept:

To Whom It May Concern:

I have a question regarding internet payday lenders. I have visited the Department of Financial Institutions site and found some information. However, I am still a little confused.

I understand that storefront payday lenders are legal in the state of Kentucky and have printed out the laws applying to them. However, there is nothing regarding internet payday lenders.

I did a search on the site to see if some internet payday lenders were licensed in Kentucky. No results came up for any of them. If the case is that an internet payday lender is not licensed in the state of Kentucky, what then?

Internet payday lenders are claiming they do not have to comply with Kentucky state law. They claim they comply with the law in which they are located.

If they are not licensed in the state of Kentucky to fund loans, are they not in violation of some sort of law?

Any help in this matter would be greatly appreciated. At the very least, it might clear up my confusion.

Thank you so much for your attention in this.

Response:

Internet payday lending is illegal in Kentucky.

Chris Thompson
Compliance Branch Manager

Reply:

I have emailed before regarding internet payday lending and received the reply that internet payday lending is illegal in Kentucky. Thank you for that information.

I now have another question. If an agency is attempting to collect on an internet loan - which was illegally funded - does the collection agency need to be licensed in the state of Kentucky? Is this even a legal debt to collect on?

Thank you for any information you can give.

Response:

I am not sure who if anyone licenses collection agencies. This Office does not consider it a legal debt as the entity was not licensed to do business in Kentucky. Chris Thompson
Compliance Branch Manager

Reply:

I have viewed our state pay day law and understand that a store front pay day loan company can collect one NSF fee if your check is returned by your financial institution.

However, I have a question. How many times can a pay day loan company run the check through to your financial institution?

I have a pay day loan company that I am working on setting up a repayment plan; however, they keep running the check through my financial institution every week.

I was under the assumption that pay day loan companies may run the check through only once; however, I could be misunderstanding.

Could you please clairfy for me how many times a store front pay day loan company can run your check through your financial institution? I would like to be sure this company is following the law.

Thank you in advance for any answers/advice.

Response:

There is nothing in the check casher statute that prohibits the number of times a pay day loan company can run the check through; however, it is my understanding that banking law on allows a bank to do it only twice.

Chris Thompson
Compliance Branch Manager

I've looked more into this, to see exactly why internet lending is "illegal" in KY

Ms. :

We have an Administrative Regulation in Kentucky 808 KAR 9:040 Limitation on electronic fund transfer from customers accounts that states: ???????In connection with a deferred deposit transaction, a license shall deposit or present for payment a customer????????s actual check to the customer????????s bank or other financial institution unless that check is redeemed or bought back by the customer.???????

This prevents Internet payday loans in Kentucky and any company that may be offering loans in Kentucky is doing so illegally. If you have any additional questions feel free to contact me.

Sincerely,

Rodney Gabbard

What does this mean?

A legal lender must hold a check from the customer.

Storefronts can charge you 15% of the face value of the check.

Rollovers are not allowed.


So it is my understanding that although PayDay One is a legal lender they are not permitted to make internet loans in KY.


lrhall41

Submitted by nohiogal on Mon, 01/12/2009 - 07:50

( Posts: 2582 | Credits: )


did you file AG complaints yet?if not do so.there response which i have just read is typical pdl speak.they have to be licensed in your state to lend.file the complaint then inform them of this.also your intention to seek the overpaid monies returned to you.


lrhall41

Submitted by paulmergel on Mon, 01/12/2009 - 17:57

( Posts: 15514 | Credits: )


Now I'm really confused. Then why are we putting "
prohibit you or your affiliates to contact me via telephone at my place of employment or my home and cellular telephone numbers. I also prohibit you from calling my references listed on my loan. As part of the Fair Debt Practice Collection Act, once I inform you of this, you must stop the telephone contact immediately or you will be once again breaking the laws of the state of Kentucky" in the letters I am sending out. Or is this only applying to them calling my work/references?

Also, as far as Pay Day One is concerned....what would make them legal as an internet lender in Kentucky when all the others are not legal? Their website says "Payday" loan and they allow illegal rollovers. I really need to get the right information on this so that I am not putting myself in a worse spot with them during this process. I really do appreciate all the help that I have received. I feel that I am making good progress and just don't want to mess that up.


lrhall41

Submitted by 1susan1111 on Tue, 01/13/2009 - 10:15

( Posts: 46 | Credits: )


I am only stating a fact, the fdcpa does not apply to the original creditor, see below:

[quote]What debt collectors Are Covered By The Act

The act regulates the conduct of debt collectors: any person who regularly collects debts owed to others. This definition includes lawyers who perform debt collection services on a regular basis. Even where money is legitimately owed, a debt collector's conduct is restricted by this law.

In-house collection agents are not ordinarily covered by the Act. For example, if you have a store credit card, and the store's own collection department contacts you, the FDCPA does not apply. However if the same store uses an outside collection agency to contact you in relation to that same debt, the outside agency's conduct is restricted by the FDCPA. Similarly, if the same store uses an in-house collection agent, but suggests to you that the collection is being performed by a third party, the FDCPA may apply to them as a result of that representation.

Please note that there may be other laws in your state which restrict the conduct of in-house collection agents.[/quote]

I'm a bit baffled why Payday One would be lending to residents of a state which does not allow payday loans. This is why I suggested you re-read your contract, they may be operating as a different entity in your state. The only way to be 100% certain is to call you state financial institution and ask them. Just a suggestion. :)


lrhall41

Submitted by Shazzers on Tue, 01/13/2009 - 17:50

( Posts: 17344 | Credits: )


Just call and ask if PayDay One is licensed in Kentucky? Kentucky allows payday loans, just not internet ones. What types of entities could they be operating as? If they market themselves as payday loans are they not held to the standards for that industry?


lrhall41

Submitted by on Tue, 01/13/2009 - 18:39

( Posts: | Credits: )


From the Kentucky Department of Finance Website.

Frequently asked Questions...

Quote:

What is a payday loan?
A payday loan, also called a deferred deposit, is issued when a financial institution (a payday lender or check casher) agrees to provide cash in the amount of the customer???s next expected payroll check for a fee. These short-term loans are required by state law to be paid in full before another one can be issued, and customers may only have one payday loan at a time. Internet payday lenders are not regulated in the state of Kentucky and are therefore illegal.


So they are operating illegally in KY.

Stick to your guns that they are illegal.


lrhall41

Submitted by nohiogal on Wed, 01/14/2009 - 02:45

( Posts: 2582 | Credits: )


have some illinois snow too.we have more than enough. :lol: :lol:


lrhall41

Submitted by paulmergel on Wed, 01/14/2009 - 06:31

( Posts: 15514 | Credits: )


Thanks for all the information. I just replied and told them that they had to follow the laws of KY and used the correspondence w/ the office of financial affairs. Initially, I asked for a PIF but, now, I've asked for the over 1000 refund that I am really entitled. Keep your fingers crossed/


lrhall41

Submitted by on Wed, 01/14/2009 - 06:45

( Posts: | Credits: )


So, I've gotten another response from PayDay One. They state that:
Thank you for your correspondence and information in your email dated January 14, 2009. Previously PayDay One received information from the Commonwealth of Kentucky (Office of the General Counsel, Department of Financial Institutions) contrary to the statements you forwarded in your email which supports our assertion that Delaware law applies to your loan number ******* and accompanying documents.



In the interest of amicably resolving the matter, we would be happy to discuss acceptable settlement arrangements for the principal balance.

I replied with a copy of the statement and link that states that internet payday lending in Kentucky is illegal. I highlighted that part for them :) Anything else I should do?


lrhall41

Submitted by 1susan1111 on Thu, 01/15/2009 - 12:02

( Posts: 46 | Credits: )