Good News For Pennsylvania

The change was scheduled to go into effect February 1st but only applies to loans made after that date. Also CashNetUSA sued the state to prevent the new policy from going into effect. Not sure where that stands in the court now.

Thanks for the info. I hope it changes soon!

I borrowed $500 from Integrity Advance 11/26/08. They took their first payment towards the principal just on 2/13/09 with the last debit. I have paid them $750 so far. $50 of that is towards the principal. Anyone know of any way I can turn this to my advantage? Dazed & ripped off in PA

I doubt it. As I understand it, the new policy only applies to agreements entered into after February 1st, even putting the CashNet lawsuit aside. Integrity has a Delaware license, so it's loans were legal under the old policy.

I too had found the PA Dept of Banking's interperative letter that indicated Internet PDLs had to be licensed as of February. Armed with that knowledge I started fighting some of the lenders I had loans with. As part of that fight, I filed an online complaint against two of them with the Department in early July. Within a couple of days I received a phone call from a Dept rep, who informed me that they couldn't help with Internet PDLs since they were governed by the laws in the lenders' home states. Not until I pressed him about their own Interperative Letter did he admit that the department's position had changed, but that they were being sued to prevent enforcement. Apparently, until the suit was decided, the Department agreed not to take any enforcement actions. Interestingly, though, several payday lenders I was arguing with backed down quickly when they realized I knew their position in PA had changed.

I left the issue alone for a few weeks because I was busy due to the birth our newest daughter. Today I decided to do a little more research, and I discovered that the suit has been decided in favor of the Dept of Banking! This means that internet payday loans made to PA residents after 2/1/09 are indeed illegal. In my opinion, this would apply even to loans that started before 2/1, that got "re-loaned" after 2/1. Anyone agree or disagree? Here is a link to the department's press release announcing their victory. http://www.banking.state.pa.us/banking/lib/banking/news_and_events/press_releases/2009/rls-bank-inetpayday-071309.pdf

The press release includes a link to the court's decision for those who like to read legalese.

It depends on the interpitation of "re-loan". Some states look at a roll-over as a continuation of the original loan and others view each as a new loan. If you paid the balance in full and took out a new loan on the same "visit", then there is no discussion as it would be a new loan. My guess would be that it is any loan (roll-over or new) since 2/1/09. Too big oc a chance for the state to lose the entire ruling (and the cost to fight) if they tried to make it retroactive.

But this is all speculation on my part...

I agree, an ongoing loan from prior to 2/1 probably wouldn't be a new loan. Also speculation on my part, but it seems to make sense.

:phi everyone
i havea question about alliance asset and GECC?DIRECT express cash in illinois
lic in delaware of course!
i got a letter from alliance - loan started in 3-30-09 from GECC
i paid 6 fees @ 66 each and also 60.00 in addition - then closed acct as i found out they were affiliated w northway and we all know they are outside us in MALTA!
my question is this - i live in pa and with the new law above - ( even before i saw this) i felt i satisfied my 300 loan to GECC as i paid 66 times 7 - 2 allowed by PA so even with 5 times 66 ( over interest rate and usurp PA laws - they never provided me w license or audit number my rigt as consumer) - and their moneygram infor is DELAWARE surprise huh? lol - so my figures are i paid 60 - and then 66 times 5 - satifsies and then some my 300 loan. The letter staes i owed 375 ( most recent balance they had on file was 292 which is insane as i paid 60 toward principle making it maximum 300-60=240 ( w/o the 5 rollover PA illegal fees paid of 66.00 =330 plus 60=what i paid on this 300 loan taken out 3-30-09. I closed my acct july and the letter staes i have a month to reply. i have their email and fax and all of that and a letter i did ( 4 pages single spaced ) thanks to you guy s- to northway and i was hoping i could do some changes - namesm dates amounts etc and email that plus the new PA law plus i have my old account statements showing the 66 and 60.00 debits - i blacked out any info i didn't want them to see on the statements - thinking faxing that but emailing the letter and PA attachments? my brother is an atty and he gave me letter head too - may send bank statements wtih short summary of what i paid on that " my client has informed me and enclosed you will find her bank receipts as proof of payment to your company in the amount of...." she is providing you w additional letter and PA law i provided to her....any thougths on my figures , approach?? MUCH THANKS

How do i make sure i get your responses to my quote above?

Jules

if anyone reads my quote at 655 and has advice can you email me ? i alwasy have trouble finding comments to my questions and my computer is all messed up too

[EMAIL="julie224@ptd.net"][/EMAIL]Email address removed AGAIN, and you know why, Shazzers
more thanks thank you know! well i know you all know!