Live in PA...in Payday Loan Nightmare
Date: Tue, 04/28/2009 - 21:52
I live in PA and
I have loans with Discount Advances, Biggest Cash, Cash Central, Cashnet USA, Payday Done.
I never signed the contract with Biggest Cash yet they put money in my account apparently. I didn't even realize and they say I'm responsible for it.
I borrowed $1000.00 from Payday one. I have paid $2572.00 and they want another $782.00. I told them that can't be right and they said the law says it is.
So I called the Department of Banking just today 4/28/09. They tell me although these loans are illegal in PA, I am still bound by the contract I signed with these companies and I must abide by the laws in the lenders state. In other words, they don't necessarily have to be licensed in PA.
Is there any hope?
Hey nohiogal, I would say that either the OP did not understa
Hey nohiogal,
I would say that either the OP did not understand the statement from the Dept of Banking or you are incorrect. This is not a random question that comes into the "DFI" once or twice a year. According to our DFI, the get multiple calls each day and I would assume that PA would be the same.
May I suggest that someone call and clarify the regs BEFORE we tell them to not pay a company! If I remember correctly, another poster spoke to the WI DFI and got clarificartion that was vastly different from the advice being given a few weeks ago.
reply
if the loan was taken before fed,then the old law applies.if after feb,then it is illegal.sounds like all were before feb.so the old law applies here.
So the loans are illegal, the OP was told that, but they are bou
So the loans are illegal, the OP was told that, but they are bound to a contract that is basically illegal?
If they are illegal then should the contact not be void?
I have sent the question to the PA DFI. I will see what answer I get back.
In the meantime I found this which is the actual notice that int
In the meantime I found this which is the actual notice that internet payday lenders are required to be licensed as of February 1, 2009 and if they do not comply they could be subject to enforcement action.
I think that says a lot if the state would take action against them it is because what they are doing is illegal.
reply
up until feb.if a pdl had a license anywhere the consumer had to follow the laws of that state.pdl's are now totally prohibited,but if the consumer procured the loan before feb.then the old loophole applies.it does stink,but at least PA got it right eventually.
Integrity Advance
I live in PA and received an e-mail stating that I had been pre-approved a for a PDA, after reviewing the data, I processed a loan for $400.00. This took place in late January with my first pay back ACH scheduled for February. It has now been three months of payback (over $500.00) and today when checking the status of the loan, they advise me I owe $580.00 and they would accept a buyout of $400.00. Can you provide any direction on how to reply to them. The astronomical fees they are charging will not allow me pay them back and it will further put me in a more dire situation.
Integrity Advance
I live in PA and received an e-mail stating that I had been pre-approved a for a PDA, after reviewing the data, I processed a loan for $400.00. This took place in late January with my first pay back ACH scheduled for February. It has now been three months of payback (over $500.00) and today when checking the status of the loan, they advise me I owe $580.00 and they would accept a buyout of $400.00. Can you provide any direction on how to reply to them. The astronomical fees they are charging will not allow me pay them back and it will further put me in a more dire situation.
As far as I know Integrity Advance is only licensed in Delaware
As far as I know Integrity Advance is only licensed in Delaware.
When I spoke with the PA Dept of Banking they told me it didn't
When I spoke with the PA Dept of Banking they told me it didn't matter whether they were licensed in PA or not; that it is a legal contract and the borrower must abide by the terms.