PDL help needed in Ohio

First thing would be to find out which of the internet PDLs are legal & licensed.

If they are not legal you only owe the original principal amount borrowed....minus any payments you have made.

Its late tonight but tomorrow I will research the companies you have listed and see what I can come up with.

I'll save you time...

All PDL's are illegal in Ohio unless licensed and charging 28% APR.

Your storefront has probably converted to an installment loan, correct?

You better double check on CashNetUSA, they very well could be a legal lender to Ohio residents, they may be acting as a small installment loan. Call your Ohio DFI to be certain.

@PDLOwner-
It's still operated the way that it has been since before the new laws... just a little extra work with a money order involved - probably so that they can get around the interest limits.

@Shazzers-
I agree with you on that. Just checked their site and they're a licensed (OH-confirmed) CSO, as well as being with the CFSA. That one, and the storefront one, are actually worrying me the least.

They are not necessarily getting around the interest limits, but making up fees with an origination fee (I believe) and charging you for the MO and for cashing it.

Yeah - that's it. Anything to get them their $15 per $100 I guess. :)

As a bump back up...
I've pretty much decided that I'm going to go the EPP route with both the storefront and Cashnet. I figure that they'll be most likely to play by the rules and not screw me over (license and CFSA). I'll be getting all my letters together for the others, email and faxing, this weekend, and get my account secured early next week - before I send the letters, of course :lol:
As a side question: anyone have experience with how cooperative Key Bank is in situations like this? Just would like to know if I'll have to prep for dealing with the payment processors as well.

I am not familiar with key bank but you can search them in the box on the top right of the page to see what others are saying.

I wanted to add though be careful where you fax from because once you default they will probably start flooding that fax machine with faxes.

Don't worry - I think that the local Staples might be able to handle it. I might want to keep an ITP (innocent third party) out of this, however, so I may try www.myfax.com/free/ instead.

Edit to add: Nothing really fitting for Key under "search", or at least I couldn't find it. :(

Update:
Got through talking w/ my payroll officer this AM... Wage assignment revocation delivered - won't be a problem, since they deny all WA's anyway, but I made double sure with my letter; Unfortunately, pay's already gone out for Wed. 7/29 :cry:
After I recovered, I went to my bank (Key Bank), and told them of the situation. The Office Manager placed a "block all debits" on my current account, since my check's going in Tues. night/Wed. morning. She said that unless the ACH's were already authorized (in the system?), then they'll be denied. Hopefully, my ipdls don't post things until tonight or tomorrow - if they have posted, then I'm sunk :( I'll basically have to eat any that slip through.
If things go OK, though, I'll be back on the plus side, and able to open a new account - I made sure that there'll be NO connection between the old and new accts. Also, she said that when I close the old one, she'll add "Do not reopen under any circumstances" to the old one.
So. Step One complete.
Now for the e-mails/faxes... those, however, will have to wait until I've had some sleep.

Great News!! Keep us posted :wink:

Okay... letters went out to my illegals - was able to free-fax 2 of them. Here's the template I used:
----------------------
Date

IPDL Name and info

My Name and info

This letter serves to notify you that the services that you provide are illegal under Ohio law, and, as such, makes any supposed contracts null and void. Due to the fact that Internet payday lenders must be licensed in the state of Ohio in order to issue a legal and binding contract, your company should NOT issue any loans whatsoever to Ohio residents. If your company is in possession of an Ohio business license, please respond with the DBA name and license number for verification.

The details of Ohio law regarding pay day lending are as follows:

Legal Status: Legal (-Low Cost)

Citation:
Ohio Rev. Code Ann. ???? 1321.35 et seq.

Loan Terms:
Maximum Loan Amount: $500
Loan Term: Minimum: 31 days
Maximum Finance Rate and Fees: 28% annual interest
Finance Charge for 14-day $100 loan: $1.08
APR for 14-day $100 loan: 28%

Debt Limits:
Maximum Number of Outstanding Loans at One Time: One, four per year
Rollovers Permitted: None
Cooling-off Period: 2 loan limit in 90 days
Repayment Plan: Yes, 60 days, no fees

Collection Limits:
Collection Fees: Bank charges (if disclosed); $20 collection charge; Court Costs after default; damages
Criminal Action: Prohibited

Point 1: I hereby revoke any and all ACH authorizations with your company and prohibit your company from debiting any of my personal accounts, per Federal law, Regulation E Section 205.10 Preauthorized transfers. I have secured my account with My Bank to protect my interest in this matter, per instructions from The Ohio Department of Finance.

Point 2: I also revoke any and all wage assignments that I may or may not have signed with your company, I no longer authorize you, your company, your affiliates, or your designees to attach any part of my wages or to contact my employer for your collection purposes. I have notified my employer about this matter, so any attempts to do so on your part will be rejected.

Point 3: I demand that any contact be made through US Postal Service mail or email only. I wish to have everything in writing in order to keep accurate records of all communication as per instruction from my Attorney General's Office.

Point 4: I prohibit you, your designees, or your affiliates to contact me via telephone at my place of employment or my home telephone number. I also prohibit you, your designees, or your affiliates from calling any references listed on my loan.

While an illegal contract should be considered void, I feel that I am morally obligated to repay your company the sum of the initial funding amount. I am therefore willing to negotiate a fair extended repayment plan on my outstanding balance.

However, if your company violates any of the above four points, I will file official complaints with the appropriate State and Federal agencies. It has been noted that companies similar to your company often use empty threats of criminal charges and other forms of harrassment in order to attempt collections. If any such incidents occur, I will seek legal and civil redress to the best of my ability.

I expect a response from your company no later than 5 days from the above date regarding this matter. As stated above, this response may only come via US Postal mail or email. No telephone contact is permitted.

Respectully,
Name Here
------------------------------

Now the stress begins... waiting for their responses, waiting to see if my account is pillaged (the bank says it's locked down, but I still worry), waiting for the inevitable calls...

Sheesh - I need a drink (and I'm not a drinker!)

Looks solid!

Well, 2 email responses - both saying that they're willing to "work with me"... not too hostile, just businesslike.
Best part is - all my money stayed in!!! :D
No calls, either - they might not have seen that their debits were blocked yet, though.
Off to open a new acct. and close the old permanently.
Thanks for the help so far!