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LA law vs Payday Loan Language

Date: Wed, 03/09/2011 - 14:13

Submitted by magnolia2178
on Wed, 03/09/2011 - 14:13

Posts: 6 Credits: [Donate]

Total Replies: 3


I was looking at the LA OFI website http://www.ofi.state.la.us/ about Payday Loans and it outlines the fees that can be charged (no more than $55, can't roll over loans without paying 25%, etc.) This loan was for $400 but the LA website says the max you can borrow is $350. However, when I look at the contract for One click cash it states:

Governing Law: Both parties agree that this Note and your account shall be governed by all applicable federal laws and all laws of the jurisdiction in which the Lender is located, regardless of which state you may reside, and by signing below or by your electronic signature, you hereby contractually consent to the exclusive exercise of regulatory and adjudicatory authority by the jurisdiction in which the Lenders is located over all matters related to this Note and your account, forsaking any other jurisdiction which either party may claim by virtue of residency.

Am I bound by the Oneclcikcash contract or can I write them and say that I am bound by the LA fees?

Please help


OneClickCash isn't licensed to lend anywhere in the U.S, therefore, you should treat this as you would an illegal lender. Unlicensed lenders are NOT entitled to interest and fees, if you pay them interest or fees according to your state law it will only encourage them to scam others. They can do nothing to you legally.


lrhall41

Submitted by Shazzers on Wed, 03/09/2011 - 14:41

( Posts: 17344 | Credits: )


I emailed the LA OFI. I received a response that in LA that "parties to a consumer credit transaction may agree that the law of the place wherein the consumer credit transaction was entered into or the law of the residence of the buyer or debtor shall apply". So I'm assuming that when I accepted the terms of the loans from Cash Central, OneClick, etc that I'm agreeing to the payday loan laws in the state where they reside?

However, he also said " Whenever an action is brought in this state to enforce rights arising from consumer credit transactions wherever made the creditor shall, where applicable, reduce the charges so that they do not exceed those provided in Part II and/or III of this chapter."

I'm assuming this means you can enter the agreement but if you don't pay when they try to enforce the contract in LA they have to reduce the fees, etc to what LA allows?


lrhall41

Submitted by magnolia2178 on Tue, 03/22/2011 - 08:37

( Posts: 6 | Credits: )