Curiousity - New Mexico payday lenders

Polly, I have a loan in default with payday ok. I have been sending payments to New mexico for a few weeks. They sent a wage assignment to my employer this week..A move that really confused me since I thought our payment arrangements were going well.
Paydayok was my very first payday loan. I printed the contract sheet out when I got it, and I just looked. It doesn't have the apr listed on there anywhere. I went to their site and looked, but can't find it listed anywhere there. They are cheap(as far as payday loans go) only charging $12 per $100 for 2 weeks. However, they seem to try to get you to loan for 17 or 18 days which jacks the rate up. Hopefully this helps a bit.

Ok...please look at my paydayok letter!!! Use it as a guide. Don't let them garnish your check!

Thanks Polly! I already have looked at your letter. Since I live in Michigan can I use it verbatim? What can I hope to accomplish?

I dealt with one New Mexico lender, I got them to cave since they were breaking every law known to man LOL! :)

I am making payments to them thru my consolidation company,I live in Virginia,I havnt had any problems so far from them,they email my balance to me after each payment,and they dont seem to be adding any interest at this time.Ive paid them about 4 times my loan in fees,so maybe they wont try to add on anymore.It would be great if I could get them to forgive my balance since they already gotten quite a large sum from me. :evil:

what does sending the letter to paydayok do? also i took out a loan from them and im in pennsylvania.. anyone know what the laws are over here.. i tried doing a search on the net but couldnt come up wiht anything

fins,

I settled with them. Did you see my correspondence with them after the initial letter? They offered a settlement, I countered, and I got my way!

Twokid,

The Virginia laws are posted somewhere here in the forum by an attorney in Virginia. If I remember right, a lender must be licensed in that state. Let me see if I can find the link for you.

Here's a summary of what Virginia law provides as to payday loan companies, key factors being the license requirement, the prohibition against using false names, and the civil enforcement provision that provides for treble damages and attorneys' fees for the consumer. My guess is that most states have something like this. And the payday loan companies that operate over the internet are generally unlicensed. If they're required to register and be licensed in your state as they are in Virginia, and they haven't done so, then I'd argue that you don't owe them anything, because they don't legally exist. Not only can they not initiate criminal proceedings against you, they can't even sue you in court.

This is part of the laws in Virginia. It's under the Walk In Payday Loan Thread on the second page under dealing with collection agencies.

Thank you so much Mishele,your wonderful. :D

fka,
PA does not have any payday loan legislation, but they do have a 25% cap on interest. Anything beyond that is criminal usury.

does that mean the max that can be charged for a loan is $25 per 100? if so i have several lenders that charged me $30 per 100. let me know if i understood that correctly. thanks

fka,

no, it means the total apr cannot be more than 25%. Some payday lenders charge between 400 and 700% apr. That would be criminal usury in your state! Send them a letter, and tell them hasta la vista in a legal sort of way:)

what would you say is a good way to start off?

GECC is licensed in South Dakota,do these interest laws apply to them also,and what about if they have sent it to a Collection agency?Can you still fight the interest once it has been sent to collections.
I was making payments to them thru consolidation,but they sent it to SIMMs anyway,maybe so that I could not fight the fees?HMMM

fka,

Pa's legal website sucks! LOL I am trying to find the exact law.

This is a brief synopsis...


PENNSYLVANIA, the legal rate of interest is 6%, and this is the
general usury limit for loans below $ 50,000, except for: loans with
a lien on non-residential real estate; loans to corporations; loans
that have no collateral above $ 35,000. Judgments bear interest at
the legal rate. It is criminal usury to charge more than 25%.

If you can find the exact law that is the best way to start. Then if you look at some of my other letters that I have posted, put in the WDPA 1997 ruling to dispute their claim of governing law. Then use the New Mexico law that went into effect on Feb 15. Finish up with a firm request that your account be marked paid in full.

yeah i was having the same trouble trying to find any type of laws that i could use in my leter. ill keep looking and see what i can find. ill also post it up if im allowed to so that others in pennsylvania can benefit from it

Check out the consumer law website that was mentioned by Clay in another thread.