Misc info

Well, now that sure is interesting. Gee, I am really surprised to find that most internet PDL companies don't follow proper procedure. (sarcasm)

lol that's what I thought as well. We know that all the PDL are such fine, upstanding citizens.

Dana-

A paper check is not required to do an online payday loan. However, storefront lendors require you to actually write out a post-dated check for them.

The information you provide to the online lendors usually is enough evidence that the loan took place, and thay a repayment will follow on the next paydate.

Regards-
Mike

Mikey,

I wonder if part of the reason a paper check is required in some states' payday lending law because
1. restricts lending to in-person
2. I've noticed how easy it is to get companies to stop debiting accounts, even when paid off

The reason I had posted the statement about DC is because of this statement posted on the DC business resource services website:

DC's Attorney General Warns Payday Lenders

The Attorney General for the District of Columbia Robert J. Spagnoletti announced that he is taking steps to curb aggressive collection tactics used by payday lenders.

"The Office of the Attorney General (OAG) became aware in recent months that many payday loans in the District of Columbia require borrowers to make loan and fee payments through automatic debits from their bank accounts. The loan procedures are carefully prescribed by the DC Check Casher's Act. The Act allows these high fee loans only when a borrower presents a check to a lender and enters into an agreement with that lender not to deposit the check for a short period of time-usually two weeks. The payday loan is repaid when the lender deposits the check and it clears.

In an effort to stop abusive practices by payday lenders, OAG has sent approximately 125 letters to District businesses licensed to provide check cashing and payday lending services. The letters notify owners that, under DC law, a payday loan must involve the deferred deposit of a check rather than automatic withdrawals from a consumer's bank account.

Consumers with questions about this action can call OAG's consumer complaint hotline at (202) 442-9828. For consumer education information, and tips on how to make an effective consumer complaint, visit OAG. "

When I spoke with the investigator for the state of Va, he said that by requiring paper checks, Va is trying to prevent internet loans. I know, it doesn't stop it, but they are hoping it will.

Dana

And I apologize for having the active hyperlinks. Sorry.