Cash in a Wink

Also just found an email they sent me in late August. I don't know why it says pay the loan in full for the amount of 0 dollars? I'm confused over this one. When I log onto their site it states I still ove ~ 180. This email make sense to anyone?

Thank you for being a Cash in a Wink customer. Your loan of 0.00 from Cash in a Wink is due on September 02, 2010. You have 3 options for your convenience to choose from:
Renew the loan: In this case, we would just collect the finance charge of 0.00 on the due date. You do not have to notify us if you will be renewing the loan, as we will do it for you automatically.
Pay Off the loan: Pay back the loan of 0.00 in full plus the finance charge of 0.00 on the due date. Please send us an e-mail at [EMAIL="customerservice@cashinawink.com"]customerservice@cashinawink.com[/EMAIL] or call us at 800-723-3050 and notify us by 4 PM EST the day prior to your due date.
Partial Pay down: Pay back a portion of your loan plus the finance charge of 0.00. This is a convenient way to pay back your loan over a longer period of time and reduce your fees. Please send us an e-mail at [EMAIL="customerservice@cashinawink.com"]customerservice@cashinawink.com[/EMAIL] or call us at 800-723-3050 and notify us by 4 PM EST the day prior to your due date.

BASED ON THE OPTION YOU HAVE CHOSEN, PLEASE MAKE SURE THE MONEY IS AVAILABLE IN THE BANK ACCOUNT LISTED IN YOUR APPLICATION ON September 02, 2010 TO AVOID INCURRING ANY ADDITIONAL FEES.
If you have any questions or need any further assistance, we are here to help. Do not hesitate to contact us by e-mail at [EMAIL="customerservice@cashinawink.com"]customerservice@cashinawink.com[/EMAIL] or by calling 800-723-3050.
Sincerely,
Customer Service
Cash in a Wink
800-723-3050
Email: [EMAIL="customerservice@cashinawink.com"]customerservice@cashinawink.com[/EMAIL]
Web Address: [URL="http://www.cashinawink.com"]www.cashinawink.com[/URL]

Cash in a Wink is not legal in Pennsylvania. You just owe $5 to them since you said that you have paid $ 395 on a $ 400 loan. Send them a letter or mail stating that since they are illegal in PA, you will only pay the principal amount. Go through this thread: debtconsolidationcare.com/paydayloan/illegal-pdl-dealings.html.

Cash in a Wink is not a payday lender, they offer small loans, so they are legal in Pa.

They state they are Payday Loans right on their home page. Doesn't that automatically qualify? And I am still confused on how a lender is considered small loans, installment, or the such vs. payday. I'm assuming any institution backed by a bank is not considered a PDL? Is that correct?

Thanks,

Ken

Also,

STATE OF DELAWARE NOTICE
All transactions are governed by the laws of the State of Delaware. Please refer to 5Del.C. Section 2218-2231, for further clarification of the laws that are applicable to this transaction. This service does not constitute an offer or solicitation for short-term loans in all states. The states serviced may change from time to time without notice. We are a Delaware based lender. Delaware law governing consumer loan agreements apply. If you do not want to enter into a loan agreement subject to Delaware law, you should apply for a loan at a lender located in the state where you reside.

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Directly off their site.

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Ken

[QUOTE]All transactions are governed by the laws of the State of Delaware. Please refer to 5Del.C. Section 2218-2231, for further clarification of the laws that are applicable to this transaction. This service does not constitute an offer or solicitation for short-term loans in all states. The states serviced may change from time to time without notice. We are a Delaware based lender. Delaware law governing consumer loan agreements apply. If you do not want to enter into a loan agreement subject to Delaware law, you should apply for a loan at a lender located in the state where you reside.[/QUOTE]That's the problem, they are offering short terms loans so they won't be required to follow the payday loan laws. It's like a catch 22 situation.

But don't they still need to be licensed? And if so governed by the laws of Pennsylvania of only being able to charge 24% if licensed and 6% if not unless backed by a federally registered bank?

Ken

The Pa. Department of Banking does not regulate all financial institutions, money transmitters, etc., so the best way to know for certain is to contact them. My best guess is you are bound by the state laws they are licensed in but I am not 100% sure, so by all means call. Their number is: 717.787.1854

I hate the way legal documents are argued...

In the Cash American Net of Nevada, LLC v. Commonwealth of Pennsylvania, Department of Banking the argument starts with:

Appellant Cash America Net of Nevada, LLC (Cash America), is a Delaware limited liability company qualified to do business in Nevada and licensed by the Nevada Division of Financial Institutions, with no offices or employees in Pennsylvania, engaged in the business of making short-term "pay-day" loans to Pennsylvania residents over the Internet. Payday lending is a consumer lending practice in which a lender offers consumers high-rate, short-term loans secured by either a post-dated check or a debit authorization from a bank. These post-dated checks or debit authorizations become payable to the lender at the end of the loan term, usually set at two weeks to coincide with the borrower's payday. Pa. Dep't of Banking v. NCAS of Del., LLC, [URL="http://www.debtconsolidationcare.com/forums/ xmlcontentlinks.aspx?gfile=948 A.2d 752"]948 A.2d 752[/URL], 754 (Pa. 2008). The Department characterizes such loans as a predatory lending practice.

Also,

The CDCA, which was originally enacted in 1937, defines "person" as including "an individual, partnership, association, business corporation, nonprofit corporation, common law trust, joint-stock company or any other group of individuals however organized." 7 P.S. ? 6202. Section 3.A of the CDCA, 7 P.S. ? 6203.A, bars "persons" from making loans under $25,000 and charging in excess of the lawful interest rate, unless that person is licensed in accord with the act:
[N]o person shall engage . . . in this Commonwealth, either as principal, employe, agent or broker, in the business of negotiating or making loans or advances of money on credit, in the amount or value of twenty-five thousand dollars ($25,000) or less, and charge, collect, contract for or receive interest .. . . or other considerations which aggregate in excess of the interest that the lender would otherwise be permitted by law to charge if not licensed under this act . . . except a domestic business corporation organized under or existing by virtue of the Business Corporation Law of this Commonwealth, after first obtaining a license from the Secretary of Banking of the Commonwealth of Pennsylvania in accordance with the provisions of this act.

Right off the bat it seems the argument lumps payday and short term loans together. And it seems the law covers anyone who offers loans under 25000 are subject to the rules of the CDCA, according to the PA Supreme Court decision.

If they argue and I get dragged into court, how could the court not hold them to the law that was recently interpereted?

Ken