Internet payday loan help--Tennessee
Date: Tue, 04/27/2010 - 10:52
To follow the instructions I saw yesterday, this is my information: I reside in TN and have two internet pdls--Magnum Cash Advance ($750) and PaydayOne ($750). Because I have added to the loans, rolled over, renewed, etc I am no longer certain what I have paid, but really just need more information on where to start and end. I have not yet defaulted on either of these, but I have put myself in a cess pool by trying to pay them off.
I could not get my direct deposit stopped for this pay-day, so I am paying interest only on both of these again this week. But, as soon as next week gets here, I am going to stop my direct deposit, go to the bank and talk to the branch manager to stop the ACH withdrawals, and write my cease and desist letters to each.
Here are my questions:
Even though TN does not license internet payday lenders, are either of these licensed in any state? I have seen Delaware for both, and even thought I saw PaydayOne on the licensed storefronts in TN. I also read that Magnum is not truly licensed anywhere in the US but in the BVI.
Do I close my account and let the lenders contact me first, or do I stick with my plan to close the account and send letters at the same time? I do not in any way want to be contacted at my work.
Even thought I cannot tell you what I've paid on the current loans, I can assure you that I have paid more interest all together than the principal amount owed on either loan right now. I will be willing to make small payments against the principal monthly, so it's not like I'm trying to avoid paying anything.
Thank you for any further help you can give me. I apologize for the lengthy request.
Hi Micki! Out of the 2 PDLs that you have posted, only Payday O
Hi Micki!
Out of the 2 PDLs that you have posted, only Payday One seems to be licensed in some of the states, and Magnum Cash Advance has not been issued a license as of yet. As per your second question, you are apprehensive about these creditors contacting you at work. In such a scenario, it would be advisable for you to contact your creditors and let them know about your situation before or while closing your checking account, since these are Internet payday loans and they generally leave no stones unturned to get in touch with you once you miss a payment. So it might happen that if they are kept uninformed about you closing your checking account, they might call up your employer in an attempt to contact you.
[QUOTE=Shazzers;691016]Magnum Cash Advance is licensed in Delawa
[QUOTE=Shazzers;691016]Magnum Cash Advance is licensed in Delaware.[/QUOTE]
Thank you all for the information. I'm still a little confused. Do I write my letters and make my complaints based on the regulations in Delaware? Both Magnum Cash Advance and PaydayOne have allowed loans LARGER than the max amount allowed in Delaware and TN both, and both are charging more interest than allowed in TN.
Hi Micki, Under Tennessee law, any payday loan company wishing
Hi Micki,
Under Tennessee law, any payday loan company wishing to lend payday loans must obtain a license through the Department of Financial Institutions. They must show a net worth of $25,000, and provide a record of anyone that owns more than five percent of the company. Fees that apply include a $500 filing fee per location, which must be renewed every year. The maximum amount of fees a payday loan company can charge in Tennessee is 15% of the face value of the check or $30 whichever comes first. The most amount of money that anyone can borrow in Tennessee is $500. Also, terms for a payday loan in Tennessee shall not exceed 31 days. Under Tennessee law the maximum Annual Percentage Rate (APR) that can be charge is 459%. In Tennessee, a person can borrow up to three payday loans at a time, so long as the total amount does not exceed $500. Each payday loan store in Tennessee must conspicuously post their license. Each customer should be given a written explanation in clear, understandable language about fees that are charged and the date in which the check will be deposited. If a payday lender in Tennessee breaks any of these laws, they may have their license revoked or suspended. Also, any violation of these laws can result in a fine of up to $1,000 for each occurrence.