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Payday loan company licensed in my state?

Date: Tue, 04/11/2006 - 05:53

Submitted by Heather715
on Tue, 04/11/2006 - 05:53

Posts: 59 Credits: [Donate]

Total Replies: 22


Sorry I have been gone for awhile! I was wondering if there is a easy place to go to check and see if a certain Payday Loan company is licensed to do business in my state? I'm sure it has been mentioned before, but I cant seem to find anything. Thanks!

Heather =)


I am from Michigan. I went to the AG site for Michigan and did a search, but did not find any of my payday loan companies listed, except for the one storefront lender. I sent the AG an email to see if I am doing something wrong?

Thanks for your advice Jessi! Do you have anything further JJ?

Heather


lrhall41

Submitted by Heather715 on Tue, 04/11/2006 - 09:38

( Posts: 59 | Credits: )


June 1 the following goes into effect:

http://www.legislature.mi.gov/documents/mcl/pdf/mcl-act-244-of-2005.pdf

But, the internet lenders fall into the 'regulatory loan act' because they are not using a check for the loan.

The reason why the storefront lenders can charge so much is because right now there is no limit on a check cashing fee. There actual interest is under 5%. June 1 everything changes...


lrhall41

Submitted by polly on Tue, 04/11/2006 - 09:47

( Posts: 1709 | Credits: )


500 Fast Cash, Sonic Payday, Ten Dollar Payday, Premier Processing, and FSM. I think the last two might go by other names, but I'm not sure. They dont ever seem to want to tell me anything when I talk to them, other than I owe them money. I have been going back and forth over email today with 500 Fast Cash, trying to get them to tell me how I owe $885 for a $450 loan with a $135 fee amount. They never gave me a straight answer...then I asked them if they were licensed in the State of Michigan and I haven't received a response. Interesting?

Heather


lrhall41

Submitted by Heather715 on Tue, 04/11/2006 - 10:14

( Posts: 59 | Credits: )


I just sent an email to my lenders yesterday, and so far this is the response I received from ten dollar pay day: Does anyone know what I should expect from this? I am sending my first payment ot T&C today.

The inquiry that you have submitted is exactly (word for word) the same as
another inquiry that we have received, likely from the individual that you
received this information from.

While the information that you have collected may apply to lenders that
operate out of your state (have a physical location there), it does not
apply to internet lenders. This is based on sound advice from our legal
department. The contract is in fact valid.

We loaned you money in good faith. We expected that you would abide by the
terms of your loan agreement in return. Unfortunately, this has not proven
to be the case. We lent $400.00 to you and you have only paid $120.00 back.
Now you are revoking authorization on future debits, which we will honor,
but you also expect that we will mark your account "Paid in Full" when you
have not done so.

Your account is being turned over to our collections department for handling
today and will be in a delinquent status - it will not be marked "Paid in
Full." No future debits will be made from your account without you lifting
the revocation of authorization from the account. If you fail to make an
arrangement to pay your loan balance with our collections department, we
will have no other choice but to turn your account over to our outside
collections agency for handling.

It has been a pleasure doing business with you.

Regards,
Sabrina Collins
Compliance Department
Customer Service Manager
MTE Financial Services, Inc. d/b/a Rio Resources
Website: tendollarpaydayloan.com
24/7 Automated System: 1-866-539-7504
Fax: 1-866-539-7503




Details: To whom it may concern,

It has come to my attention that your company is not licensed in the State
of Illinois, which is required for all payday lenders loaning to Illinois
residents regardless of the location of the business. As such, I was not
legally permitted to enter into the loan contract with you, and based on
advice of counsel and an opinion from the Illinois Attorney General's
office, our contract is not valid. Therefore, i am immediately and
permanently revoking my authorization fot you to debit my accounts.

Additionally, I am requesting that you immediately place me in a do not loan
status, and mark my account paid in full/zero balance due to the fact that
our contract is illegal in the State of Illinois.

I expect your affirmative response within 24 hours of receipt of this email
or I will request the assistance of the State of Illinois in seeking
injunctive relief from the contract.

Respectfully submitted,


lrhall41

Submitted by Xris18 on Fri, 04/14/2006 - 08:20

( Posts: 27 | Credits: )


They are full of crap!

[quote]815 Ill. Comp. Stat. Ann. ?? 122/1-.1 - Payday Loan Reform Act (effective 12/6/05)
Applicability: Any lender that offers or makes a payday loan to a consumer in Illinois and to any person or entity
that seeks to evade its applicability by any device, subterfuge, or pretense whatsoever. A lender that is an agent
for a bank, savings bank, savings and loan association, credit union, or insurance company for the purpose of
brokering, selling, or otherwise offering payday loans made by the bank, savings bank, savings and loan
association, credit union, or insurance company shall be subject to all of the provisions of this Act, except those
provisions related to finance charge. Otherwise Consumer Installment Loan Act applies. 205 Ill. Comp. Stat ??
670/15 (allows interest at any contract rate).[/quote]


lrhall41

Submitted by polly on Fri, 04/14/2006 - 08:37

( Posts: 1709 | Credits: )


Illinois usury:
Quote:


(720 ILCS 5/39‑1) (from Ch. 38, par. 39‑1)
Sec. 39‑1. Criminal << Usury>> .
(a) Any person commits criminal << usury>> when, in exchange for either a loan of money or other property or forbearance from the collection of such a loan, he knowingly contracts for or receives from an individual, directly or indirectly, interest, discount or other consideration at a rate greater than 20% per annum either before or after the maturity of the loan.
(b) When a person has in his personal or constructive possession records, memoranda, or other documentary record of usurious loans it shall be prima facie evidence that he has violated Subsection 39‑1(a) hereof.
(720 ILCS 5/39‑2) (from Ch. 38, par. 39‑2)
Sec. 39‑2. Sentence.
Criminal usury is a Class 4 felony.
(Source: P. A. 77‑2638.)


(720 ILCS 5/39‑3) (from Ch. 38, par. 39‑3)
Sec. 39‑3. Non‑application to licensed persons. This Article does not apply to any loan authorized to be made by any person licensed under the Consumer Installment Loan Act, approved August 30, 1963, as heretofore or hereafter amended, or to any loan permitted by Sections 4, 4.2 and 4a of "An Act in relation to the rate of interest and other charges in connection with sales on credit and the lending of money", approved May 24, 1879, as heretofore or hereafter amended, or by any other law of this State.
(Source: P.A. 84‑1004.)


lrhall41

Submitted by polly on Fri, 04/14/2006 - 09:20

( Posts: 1709 | Credits: )


Xris18, Immediately file a complaint with Lisa Madigan's office. They have a form available on their website that you can fill out and print to mail (can't submit it electronically).
http://www.ag.state.il.us/consumers/conscomp.pdf

They ARE NOT exempt from Illinois Laws regarding the matter, as a matter of fact Illinois recently tightened up the Pay Day laws so depending on the date you took the loan, you may have to pay even less. They are also regulated under state law as to what they charges or fees they can assess for defaulting on the loan ( I think its like $25.00.

here is the link to the state announcement

http://www3.illinois.gov/PressReleases/ShowPressRelease.cfm?SubjectID=3&RecNum=4518

IF you PM me I can send you the link to the actual Illinois Compiled Statute. I also live in Illinois, and am particularly interested in matter that affect Illinois, I am glad to help if I can.


lrhall41

Submitted by LCW on Fri, 04/14/2006 - 09:39

( Posts: 1151 | Credits: )


i have loans from ameriloans, unitedcasloans and jd marketing. are you saying it is illegal in il. to have contracts with these payday loan plces over the internet?? if so, what do i do?? i read your stuff before me and i don't really understand all the legal talk, please help.


lrhall41

Submitted by on Tue, 05/02/2006 - 01:02

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i read you sent letters to some of the loan places, what do i need to include in the letter?


lrhall41

Submitted by on Tue, 05/02/2006 - 01:17

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You need to check with your state department and if they are not registered in your state it is against the law for them to have loaned to you.

You need to include in the letter your state laws on PDL's (You can get this if you call your state department of consumer affairs, or the AG's office, or you can search it online) and include the amounts that you have paid. If you have overpaid or paid what is legal in your state, then they can't do anything to you. Loaning money when you're not licensed in a state is a jailable offense...If they take you to court, they're going to jail. Don't let them push you around.


lrhall41

Submitted by Jessi on Tue, 05/02/2006 - 04:30

( Posts: 3361 | Credits: )


internet pay day loan companies do not have to be licenced in your state. the attny generals office only tracks licences for store front companies. an internet company can be licensed in a state with very little laws regarding loans and still lend to any other state, internet loans are very different. sending the template will do nothing to get you out of paying your debt with internet companies. more than likely if you signed the loan agreement then there is nothing you can do other than bankruptcy or working with a debt consolidation company


lrhall41

Submitted by on Thu, 06/30/2011 - 08:01

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