Federal LIcense?
Date: Mon, 04/02/2012 - 09:39
Some Payday loans say they are Federal Licensed and thus do not fall under the authority of state laws.
[QUOTE]section 27 of the Federal Deposit Insurance Act, 12 U.S.C. § 1831d (enacted as section 521 of the Depository Institutions Deregulation and Monetary Control Act of 1980 [the "DIDMCA"]). The authority of national banks to export favorable interest rates on loans to borrowers residing in other states was recognized by the U.S. Supreme Court in Marquette National Bank of Minneapolis v. First Omaha Service Corp., 439 U.S. 299 (1978), in the context of section 85 of the National Bank Act. That authority was subsequently extended to credit unions, savings associations, state nonmember banks and insured foreign branches in the DIDMCA to provide competitive lending equality with national banks.[/QUOTE]
Now what I want to know is if this federal license is real. From what I read its a state licensed and banks are allowed to use the states rates to loan to other states. Though the law is quite specific in what kind of banks can due this.
I live in Illinois and it has already been established that online lendors can not loan to its residents.
[QUOTE]Payday lenders have been known to ignore usury limits and charge higher amounts than they are entitled to by law. On May 30, 2008, the Illinois Department of Financial and Professional Regulation fined Global Payday Loan $234,000—the largest fine in Illinois history against a payday lender—for exceeding the $15.50 per $100 limit on charges for payday loans.[10] A customer, known only as J.M., had borrowed $300 and repaid $360 ($13.50 more than the company was legally entitled to collect under the Illinois Payday Loan Reform Act), but the company kept sending her warnings that her account was 'seriously delinquent' and that her unpaid balance was $630.[/QUOTE]
Anybody have more info on this
[QUOTE]section 27 of the Federal Deposit Insurance Act, 12 U.S.C. § 1831d (enacted as section 521 of the Depository Institutions Deregulation and Monetary Control Act of 1980 [the "DIDMCA"]). The authority of national banks to export favorable interest rates on loans to borrowers residing in other states was recognized by the U.S. Supreme Court in Marquette National Bank of Minneapolis v. First Omaha Service Corp., 439 U.S. 299 (1978), in the context of section 85 of the National Bank Act. That authority was subsequently extended to credit unions, savings associations, state nonmember banks and insured foreign branches in the DIDMCA to provide competitive lending equality with national banks.[/QUOTE]
Now what I want to know is if this federal license is real. From what I read its a state licensed and banks are allowed to use the states rates to loan to other states. Though the law is quite specific in what kind of banks can due this.
I live in Illinois and it has already been established that online lendors can not loan to its residents.
[QUOTE]Payday lenders have been known to ignore usury limits and charge higher amounts than they are entitled to by law. On May 30, 2008, the Illinois Department of Financial and Professional Regulation fined Global Payday Loan $234,000—the largest fine in Illinois history against a payday lender—for exceeding the $15.50 per $100 limit on charges for payday loans.[10] A customer, known only as J.M., had borrowed $300 and repaid $360 ($13.50 more than the company was legally entitled to collect under the Illinois Payday Loan Reform Act), but the company kept sending her warnings that her account was 'seriously delinquent' and that her unpaid balance was $630.[/QUOTE]
Anybody have more info on this
nonsense
those rules don't apply to pdl's.there are no federal laws in regards to pdl's.IL pdl laws apply.
The FDIA applies to federally chartered banks, credit unions, et
The FDIA applies to federally chartered banks, credit unions, etc. It does not apply to payday lenders.