Does this also apply to online payday lenders?
Date: Fri, 03/31/2006 - 09:10
Submitted by Not so Lucky
on
Fri, 03/31/2006 - 09:10
Total Replies: 12
TENNESSEE
Tenn. Code Ann. § 45-17-101 et seq. Tenn. Comp. R. & Regs. § 0180-28-.01 (relating to federal disclosures)
Applicability: To a person who holds a check for a period of time prior to presentment for deposit. Otherwise,
industrial loan and thrift companies act applies. Tenn. Code Ann. § 45-5-401 (18% on loans up to $100; 24% on
loans of $100 or more ).
Licensing requirements: Department of Financial Institutions enforces. Must show net worth of at least $25,000
and record of any person owning more than 5% of the company regarding any criminal activity or other act of
dishonesty, or other act which constitutes a breach of fiduciary duty. Must pay a filing fee of $500 per location and
produce a financial statement. Must renew annually.
Permitted charges: Not more than 15% of face amount of check or $30 which shall not be deemed interest for
any purpose.
Prohibited acts: Cannot prosecute a customer for a returned check. Cannot alter or delete the date on any check
or accept an undated or postdated check. Cannot engage in unfair or deceptive acts, practices or advertising.
Cannot make a deferred presentment loan to any customer who, upon inquiry by the licensee (and customer must
state in writing), has no more than 2 checks outstanding to any licensee that equal or exceed $500. If the two
checks do not equal $500, can make a loan which when combined with the others, does not exceed the total of
$500. In no event, can a licensee make a loan to a customer who has three or more such loans outstanding.
Cannot renew or otherwise consolidate one such transaction into another and, if so, the transaction is void and
unenforceable.
Required disclosures: Must conspicuously post the license. Must give the customer a written explanation in clear,
understandable language, of the fees to be charged and the date on which the check will be deposited prior to
consummation. Must give TILA disclosures before consummation. Must ensure that customer receives and
acknowledges an accurate and complete notification and disclosure of the itemized and total amounts of all fees
and other costs.
Loan terms: Must be in writing and signed by borrower. Deferred date can be no longer than 31 days. Must
provide a written explanation in clear, understandable language, of the fees to be charged and the date on which
the check will be deposited prior to s and acknowledges an accurate and complete notification and disclosure of the
itemized and total amounts of all fees and other costs.
Civil / Criminal Penalties: Specifically exempts businesses regulated under this act from the applicability of
other acts.
Enforcement: May revoke or suspend the license for particular reasons. Can issue cease and desist orders and
fine up to $1,000 for each transaction in violation of this act.
I would say that it likely will be considered to apply. Contact
I would say that it likely will be considered to apply. Contact your state dept. of financial institutions and ask.
Ok I am kinda confused what you are saying, are you looking for
Ok I am kinda confused what you are saying, are you looking for a way out and around of the payday loan that you took out (assuming that is why you are checking).
To answer the questing PDLs via the internet have certain disclosures and different governing laws off the top of my head PA works and acts under NM governing law. To know for sure you would have to review the contract that you signed either pysically or electronically. You can usually find the Governing law in the the Arbitration Disclosure part of the application of Pay Day Loans. ----- In NC it is illegal to give a pay day loan (or fixing to be i am tired here, and dont knwo if it passed or not) but someone in NC can go to an adjoining state and take one out.
Also which points in the state law are you refering to? Need some specifics. As an online provider there are points that would be moot.
No I am not looking for a way out or around the loans. I am que
No I am not looking for a way out or around the loans. I am questioning them do to the fact that the loans that are in consolidation are going to get close to $800-900.00 for loans in the amount of $390-425.00.
I should have never post this. I should have known that someone
I should have never post this. I should have known that someone would ask the stupid question was I trying to find a way out or around these damn loans.
I would just ignore those posts
I would just ignore those posts that people accuse of such matters. We're not people here trying to get away from not paying these lenders but trying to find ways to pay a reasonable amount instead of 1000%apr.
I do not see how something can get that high unless interest has
I do not see how something can get that high unless interest has been piling up on it forever. Only other applicable fees that I can see as being tacked on are Arbitration fees and that is if it is in the award or permitted through the disclosure. Now in my history what I have seen is that certain companies (PDL) will do what they call an extentsion loan. exactly what portion of the orginal loan that is I do not know. I am trying to understand what could double and triple the balance. I know that the last PDL I just looked had and apr of 678%, however most of the time the Interest norm is going to be approx $25 per $100 so on a $400 loan fees of $100 = repayment is $500 depending on laws they may add in NSF fees. Depending on when you took the loan out depends on additonal interest applied (NOTE this will be at the rate the State Specifies not the outrageous % on the loan app)
I would tell you to get documentation on how the debt has accrued such a high balance.
wish I could be of more help but hope that helps.
Boyd
yes
Yes, I agree...the loans are usually in the 600%apr to 1000%APR range but each payday loan company differs from the way they collect their debt. I ran into one that offered a $200 loan and charged an application fee of $79 (one-time fee) and the fee for the loan was $79 so for a $200 loan, you would have to pay back $358 in a matter of 2 weeks. Now, is that reasonable? I definitely don't think it is but there are these companies that try to take all the money they can.
Just be aware of what these companies charge and know that it is bad no matter what kind of loan it is. It will just turn into a vicious unfortunate cycle.
irrespective of the contractual agreement, which in and of itsel
irrespective of the contractual agreement, which in and of itself may be legal, If a net based lender is required tobe licensed to loan in a state, and is not, the contract between that lender and the resident of that state is illegal. In otherwords, no agreement between two parties can permit violation of law.
JJ, You are correct. In my state, all payday lenders are req
JJ,
You are correct. In my state, all payday lenders are required to be licensed, online or not. I have check with my division of financial institutions who oversees these lenders. A lot of states also require this as well. If they are not licensed in my state, they are in violation of the law. I am glad to see so many states cracking down on these violations. Most of here are trying to pay these loans off without being ripped off. Tammy, you have every right to post this here. I was ripped to shred last week as most of you know but I've decided to keep on keeping on. I know I haven't been around the forums much but I've been extremely busy. I wasn't educated when I took out these loans. It was the harassment of one collection agent that help me get educated. Boyd, I appreciate you taking the time to post of the forum. It seems you are trying to be very helpful.
Hi Kara, You can check the companies licensed in your state
Hi Kara,
You can check the companies licensed in your state from the local Consumer Protection Office. Their offices maintain a list of all the companies and their practices. So, you will be able to ascertain the company doing legitimate business in your state.
Regards
Roxette
