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Pay Day Loan Minnesota

Date: Wed, 05/20/2009 - 14:20

Submitted by anonymous
on Wed, 05/20/2009 - 14:20

Posts: 202330 Credits: [Donate]

Total Replies: 6


I reside in Minnesota and have a payday loan (amongst other) through The Cash Spot. I read through some of the other emails here and I'm still trying to figure out if this particular pay day loan company is legal or not. When I called this company to stop all withdraws from my bank account they indicated that we did not take the loan out in Minnesota, but in Delaware and therefore tell the Minnesota law does not need to follow the interstate commerse. Once i closed my acccount they called and indicated that they would work out a settlement program. I originally took the loan out for $500.00 and at the time I closed my bank account paid $62.50 in fees. They said i owed them $950 and would settle for $750 and could do it in two installements. I did pay them $375.

Can someone me if they are correct that they do not need to follow the Minnesota law and they do not have to have a MN license to give me the loan? And...do I have to pay the remaining $375 or just the difference to total the $500 I borrowed?

Thanks for the help


They do not appear to be legal in Minnesota..... they must be licensed in Minnesota. Thus you would only have to pay them back what you borrowed. Call and check if they are licensed.

Quote:

Minnesota State Information

Legal Status: Legal

Citation:
Minn. Stat. ?? 47.60 et seq.

Loan Terms:
Maximum Loan Amount: $350
Loan Term: Max: 30 days
Maximum Finance Rate and Fees: $5.50: $0-$50; 10%+$5: $51-$100; 7% (min. $10) + $5: $101-$250; 6% (min. $17.50) + $5: $251-$350 (After default: 2.75% per month)
Finance Charge for 14-day $100 loan: $15
APR for 14-day $100 loan: 390%

Debt Limits:
Maximum Number of Outstanding Loans at One Time: Not Specified
Rollovers Permitted: None (cannot repay with proceeds of another loan by same lender)
Cooling-off Period:
Repayment Plan:

Collection Limits:
Collection Fees: $30 NSF fee
Criminal Action:

Where to Complain, Get Information:
Regulator: Minnesota Department of Commerce
Address: Division of Financial Examinations, 85 7th Place East, Suite 500 St. Paul MN 55101
Phone: (651) 296-2135
Fax: (651) 296-8591
Regulatory Contact: Kevin Murphy,, Deputy Commissioner


lrhall41

Submitted by SOAPLADY on Wed, 05/20/2009 - 14:27

( Posts: 17315 | Credits: )


I sented the letter to each PDL company and closed my bank account. I recieved some paid in full letters(no refunds, of course)and some settlements for the principal amount. Those settlements I agreed to paid via money order mailed to a physical address. But what about the ones who have sent letters for more then the principal, and when I responsed saying I would only pay the principal amount, they sent it to a collection agencies. How do I deal with the collections agencies? The PDL loan is from Eastside Lenders, who I believe is not legal in Minnesota.


lrhall41

Submitted by on Fri, 07/17/2009 - 09:37

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