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State law citations regarding payday loans

Date: Tue, 04/18/2006 - 08:38

Submitted by Not so Lucky
on Tue, 04/18/2006 - 08:38

Posts: 3041 Credits: [Donate]

Total Replies: 114






Hope this helps.

Quote:

Payday loan laws are quite different in Massachusetts. Rather than having set loan amounts, the amount that you borrow is based on your monthly income. Currently, Massachusetts allows payday loan lenders to lend up to one third of your income.
As for additional fees, a payday loan lender in Massachusetts cannot exceed 15% of the face value of the loan. The fees the lender charges must be conspicuously posted at each of the licensed locations. In addition, before the borrower receives their money they must be given a clear and separate notice that states the following:

??????? Payday loans should only be used for short-term cash needs.
??????? Payday loans are high interest loans regulated by the Division of Financial Regulation.
??????? Obtaining more than one payday loan at a time is not advisable and may cause you significant financial hardship.
??????? By law a payday lender is only allowed to set payment terms at 14 days.
??????? The total fees you pay must not exceed 15%.
??????? You have the right to redeem a payday loan check at any time before your due date.
??????? For defaulted checks, you can only be charged up to $25 in fees.

In Massachusetts, all written agreements must include the name of the payday lender, the date of the transaction, and the amount of the check. As stated above, the maximum term limits on any payday loan is 14 days.


lrhall41

Submitted by Not so Lucky on Wed, 10/04/2006 - 16:50

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please advise in the state of New Jersey as i cannot afford to hire an attorney


lrhall41

Submitted by on Wed, 10/11/2006 - 15:41

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does anyone know the payday loan laws in the state of illinois


lrhall41

Submitted by on Sun, 10/29/2006 - 18:18

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I am overwhelmed...

My cousin was getting a settlement for a car wreck.. so she talked me into getting her several payday loans 2000.00 worth.. and she promised to clear them up when she got her settlement...

That was 6 months ago.. and the day she got the money she took off and never paid a dime. I'm struggling so hard to pay these.. over 600.00 a month... and I am behind on my rent and other bills.

I dont' know what to do.. and they are all due again this friday and I dont' have enough to pay them.

I can't sleep, I can't eat.. I can't even concentrate at work ( I work for the state with underpriveleged youth) and they need my full concentration.

:( what can I do?


lrhall41

Submitted by resa on Tue, 11/21/2006 - 11:17

( Posts: 3 | Credits: )


I just reread the contract from US Fast Cash. Under governing law..." account governed by all applicable laws of the jurisdiction in which Lender is located, regardless of state you may reside, and consent to exclusive exercise of regulatory by the jurisdiction in which Lender is located over all matters related to note....."
Does this release them from regulations of states that we live in? This company does not have a license to do business in Tenn. but this sounds as if they regulate according to state where Lender is. Is this correct? Someone please clarify!!!!!!


lrhall41

Submitted by on Mon, 11/27/2006 - 19:57

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Sorry, I went to your Blog but unable to locate. Can you be more specific? I am anxious to clarify that they must follow laws of state of borrower. Thanks so much.


lrhall41

Submitted by on Tue, 11/28/2006 - 05:34

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not sure how to decipher this? can someone splain this to me?

Illinois
815 Ill. Comp. Stat. Ann. ? 122/1-1 (eff. 12/6/05)


lrhall41

Submitted by candiceann2003 on Mon, 01/15/2007 - 19:51

( Posts: 139 | Credits: )


I have sent all my letters and emails to the payday loan companies, most owe me money. They refuse to honor the letter and are calling my references, place of employment and one GFS has called 24 times just today. What is my mext step? I have also reported them to the FTC


lrhall41

Submitted by taki2u on Wed, 02/07/2007 - 08:08

( Posts: 88 | Credits: )


Report the pdl company to your state attorney general for investigations. Mention in your letter that you have overpaid on the account with the company and they are not following your state laws and doing the refund. Speak with an attorney also. He will assist you in getting your money back from the loan place.


lrhall41

Submitted by ricjil on Wed, 02/07/2007 - 12:34

( Posts: 225 | Credits: )


Any advice is greatly appreciated. I have two pay day loans out right now. One with National Cash Lenders (online payday company) and Cash Advance America. I've got to do something but don't know where to turn. I'm tired of crying everyday because I can not get out of this pay day loan situation. Someone please give me advice. If I close my checking account and the check bounces that they have they claim they can put me in jail??


lrhall41

Submitted by alglona on Mon, 02/12/2007 - 11:50

( Posts: 6 | Credits: )


Welcome to the forums. You are not going to jail. If one of these is a storefront you will have to make payment arrangements. The internet one go to http://www.paydayloaninfo.org and look up your state laws on payday lending. Complain to your Attorney Generals office also check your secretary of states website to see if they are licensed to do busines in your state. You will dig out of this trust me there is a light at the end of the tunnel. Best Wishes KYSIDE38


lrhall41

Submitted by KYSIDE38 on Mon, 02/12/2007 - 11:53

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Anthony Welcome to the forums. I love Budd Hibbs website and what he stands for. KYSIDE38


lrhall41

Submitted by KYSIDE38 on Sun, 02/18/2007 - 13:17

( Posts: 2477 | Credits: )


Has anyone had any contact with United Bay Services out of Jacksonville? They claim they are collecting for 3-Midland Marketing and 8-Crown Lending? They called my employer and told them everything about my account and threatned me with federal charges if I didn't pay? How can I contact these 2 companies directly to work out a settlement and how do I handle dealing with United Bay Services? Thanks.

Jill


lrhall41

Submitted by jclaw1430 on Mon, 02/19/2007 - 12:09

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3-Midland would not work out anything with me when I told them I was revoking my authorization to debit my account. They just told me that I was being sent right to collections. I have not heard back from them. I believe I have an email address for 3-Midland, but will have to wait until I get home to pull them up off my email due to not being able to access it here at work, if you would like it.


lrhall41

Submitted by 2nband on Mon, 02/19/2007 - 12:44

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A good friend of mine came to my rescue and paid off my payday loans for me. I'm so thankful and will never go near a payday loan store again.


lrhall41

Submitted by alglona on Tue, 02/20/2007 - 07:18

( Posts: 6 | Credits: )


Husb and I moved to TX recently and just had our 1st child. we have no resource to responsible childcare, so my husband stays home with our son.Consequently, making alot less than our budget plan had estimated. Last lease just ended, going back to work after a year on bedrest. HAd to take out 1 loan to pay Feb rent, another to pay part of the 1st and then another because my son became ill and needed immediate attention. Panicking to find a way to dig out of VERY big hole i have dug for my family and just founf your site. I have never used "payday loans" before and am in serious trouble now.
My loans are with paydayok.com, cashtoday.com, and cashnetusa.com. (wishing i had seen your site 1st)
ANy info on these businesses in TX would be greatly appreciated!!!


lrhall41

Submitted by Ravenholdt on Sun, 02/25/2007 - 18:17

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i found this on ohio.

Quote:

Getting a license: Ohio is one of 24 states that have laws permitting payday loan lending. Therefore, it????????s a requirement that all payday loan businesses get a license before they operate in Ohio. Some of the fees that apply to get licensed include a $200 investigative fee and a $500 application fee. In general, for a lender to get approved in Ohio they must show financial responsibility, experience, reputation, general fitness, and have a net worth over $100,000.
Fees: Payday loan lenders in Ohio are permitted by law to charge a monthly Interest fee of 5% per month. The interest is computed and not compounded. If the loan is paid in full within the first month, a customer in Ohio has the right to get a refund on unearned interest. In addition to interest, payday lenders in Ohio can also charge origination fees (not exceeding $5 per $50) and a check collection charge (not exceeding $20).

Requirements: Any payday loan business that operates in Ohio must post their license conspicuously in the place of business. The loan contract must be written and disclose the total amount of fees in dollar amounts and in an annual percentage rate (apr). Also, the payday loan contracts in Ohio should have in bold face the following statement: ???????Warning: The rate of interest charged on this loan is higher than the average rate of interest charged by financial institutions on substantially similar loans.???????

Term limits: Ohio payday loan laws allow lenders to defer their loans up to 6 months.

Loan amount: Under Ohio law the most amount of money a consumer can borrow at any one time is $500.

Multiple loans: Ohio law prohibits payday loan stores from lending their customers loans in excess of $500 or with terms longer than 6 months.


lrhall41

Submitted by rlg_miller on Mon, 05/07/2007 - 18:17

( Posts: 69 | Credits: )


Ohio Department of Commerce

Quote:

Division of Financial Institutions
Office of Consumer Affairs
???????Payday Loans???????
Payday loans are often advertised as a ???????quick and easy??????? way to make it to the next payday. But this ???????quick and easy??????? access to
money comes with a cost. Borrowers who choose to obtain payday loans need to be aware of the costs and be certain they can pay
off the loan on time.
How Payday Lending Works
To obtain a payday loan, a borrower provides the lender with a personal check payable to the lender for the amount of the loan plus
the loan origination fees and interest. When the loan comes due ???????? normally within two weeks ???????? the borrower can let the lender cash
the check or redeem the check by paying off the loan.
If your check bounces, the lender can collect $20 plus the amount passed on from the financial institution for each check dishonored.
Ohio law prohibits the lender from offering a new loan so the borrower can pay off an existing one.
In Ohio, payday lenders can make short-term loans of up to $800. A typical loan is for 14 days, but loan terms can be up to six months.
The origination fees permitted in Ohio are listed below:
Before You Get A Payday Loan
??????? Be sure you know the cost of the loan
??????? Be sure you can pay off the loan on time
??????? Beware of lenders who offer quick cash through the Internet or classified ads ???????? They might not be properly licensed to
make loans in Ohio and the offer could be a scam
??????? Verify that the lender is licensed by going to the Division of Financial Institutions web site, www.com.state.oh.us/dfi,
and using the ???????look up??????? feature, or by calling the Division at 614-728-8400 or toll free at 866-278-0003. The Ohio
Department of Commerce????????s TTY/TDD number is 1-800-750-0750.
Loan Amount Loan Origination Fees and Interest
$500 or less $5 loan origination fee for every $50 borrowed plus 5% interest
per month or partial month.
Example of $100 loan for 2 weeks: $100 loan + $10 in loan
origination fees + $5 in interest = $115
Example of $500 loan for 2 weeks: $500 loan + $50 in loan
origination fees + $25 in interest = $575
More than $500 up to $800 5% interest; $5 loan origination fee for every $50 of the first
$500 of the loan; and $3.75 loan origination fee for every $50
above $500.
Example of $800 for 2 weeks: $800 loan + $72.50 ($50 for
first $500 and $22.50 for last $300) in loan origination fee + $40
in interest = $912.50
An Equal Opportunity Employer and Service Provider


lrhall41

Submitted by rlg_miller on Mon, 05/07/2007 - 18:33

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Did you ever get any payday loans, and if so, what companies were they with? These places use a lot of different names. Don't send them anything. I don't like the sound of this or their request. I want to see if we can get some other people's advice on this situation. Then we will go from there. Perhaps a mod can move this down to the debt consolidation/settlement area and out of the stickys so it can get some more exposure!


lrhall41

Submitted by Sassnlucy on Tue, 05/08/2007 - 14:25

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I was wondering what the laws r in PA regarding pay day loans I spoke to some one the Department of Banking and they told me it falls back to the laws where the pay day loans come from I need alot of help any one know of any place able to consolidate these payday loans some I have paid 1200.00 dollars to and only borrowed 200.......help me


lrhall41

Submitted by lostlady468inpa on Tue, 05/15/2007 - 08:06

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I wrote letters to all three of the pay day loan companies I have loans with. PayDayOk told me that they would apply any amount I paid toward my loan BUT, that my balance would accrue interest DAILY! Can they do that in Florida?


lrhall41

Submitted by on Mon, 06/25/2007 - 21:56

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Can anyone help me with laws in Ohio for the payday loans


lrhall41

Submitted by on Tue, 06/26/2007 - 10:55

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