Payday loan laws/terms

Licenses lenders may loan up to $700 at one time, In general the usury rate in Washington is 12% per year or 4% above the treasury bill rate. However Washington state-chartered Credit Unions may offer loans to their members at 15%
Know Your Rights and the Law
You have the right to change your mind about the loan within one day.
You have the right to know all of the costs involved.
You have the right to a payment plan.
A payday lender may not threaten criminal prosecution as a method of collecting a past due loan.
Paying off an old loan with a new loan may be illegal.
What to Expect in Washington State
Maximum Loan Term: 45 days
Maximum Loan Amount: $700
Maximum Fee: 15% on the first $500
10% above $500
For Example: A loan for $500 + $75 fee = $575

A loan for $700 + $95 fee = $795

Under the Truth in Lending Act, the cost of credit must be disclosed. Among other information, you must receive information outlining the finance charge and the annual percentage rate (apr). The APR informs you of the cost of your loan. For example, a 14-day, $500 payday loan with the maximum fee permitted by statute would have an APR of 391.07%.
If You Decide to Get a Payday Loan, Shop Wisely
Contact the Department of Financial Institutions to verify that you are dealing with a licensed lender.
Comparison shop for the lowest fees and penalties. For example, some credit unions offer payday loans with lower fees.
Borrow only as much as you can afford to repay with your next paycheck.
Know when your payment is due and be sure to repay the loan on time and in full.
Avoid borrowing from more than one lender at a time.
Plan for the future by making a realistic budget to help avoid the need to borrow for emergencies and unforeseen expenses.

Thanks, that's some good information I needed to know. I will check out those sites :)

you are most certainly welcome

quesik, Washington state does regulate payday lenders and it is the legal opinion of the wa/ dept of financial institutions that the law does apply to payday lenders.

This means that you should be able to make all of your internet ones go away. try using the following letter:

It has come to my attention that you are operating in violation of
>Washington State Administrative codes governing Check Cashers/Sellers and
>Payady Lenders (Chapter 208-630 WAC
>Check cashers and sellers - regulation of), wherein it states that payday
>lenders are required to be licensed by the State of Washington.
>Irrespective
>of our contract, you appear to be conducting business in violation of this
>Adminstrative code and the governing law direcing its creation.
>
>Based on my review of my payments to you, I have paid $_____ against a
>principal balance of $______. The allowable fee in Washington State is
>$15.00 per $100 loaned. Rollover of loans is illegal. Applying Washington
>law, the maximum fee (principle plus fee) for a $______ loan is $_______.
>
>In order to settle my account and avoid any liability I may have by being
>party to an illegal transaction, i am willing to settle my account with a
>final, single payment of $17.50. I will upon your acceptance of the
>above
>terms, provide you with payment via ceritifed funds (unless you have already paid the balance and then sum, in which case, its zero or you request a refund)
>email.
>On advice of counsel however, I am hereby immediately revoking my previous
>authorization for ACH/Electronic withdrawl due to the fact that the loan
>was
>made in violation of Washington State Law.
>
>As stated above I will be forwarding a letter to you stating the same via
>facsimile and US mail. A copy of this email is also being forwarded to my
>legal counsel.

Let me kow if you need more help

Hello JJ,

Thanks for the information. I'm just a little bit confused on the letter though. Can you please elaborate on it a little more?
From the letter, this is what I'm getting from it:

It looks like I'm basically writing a letter to the payday loaner? and I'm telling them that I will pay $17.50 and close the account?

So does this mean that any balance I have with an online lender will go to zero because all of them are charging more than 15% apr?

And do I actually send a letter to the legal counsel as a written letter or e-mail?

I'm pretty new at this legal stuff and not sure what the law holds but I'm getting more and more information from this website which is great!

Thanks!

whoops, ignore the 17.50, what your doing is offering to settle for what you would have paid in washington state at a licensed lender or if you have already paid for more, you either demand it be considered paid in full or ask for a refund. You can send letter to your attorney, fax it email it or just hold onto it until you need to send it, see my pm for more details. The one lender I sent it to, closed my account without any additional payment.

Some lenders may say the law doesn't apply to them and tell you to pay up. They are wrong and I have an email interpretation from the state of washington to prove it.

in that case you go to the next phase by filing a complaint with the state of washington.

Anybody know these laws for wisconsin or aren't there any? I have alot of online payday loans. I did a search but came up with zilch. Anyone know what phrase I need to search??? This site is great.

What about Texas laws?

http://legisweb.state.wy.us/PubResearch/2005/05IB011.pdf

You can go through this document. Especially watch the Attachment pages in the document.