Tidbit of Indiana Law on Payday Lenders
Date: Fri, 05/19/2006 - 10:54
Submitted by sapphiredreams
on
Fri, 05/19/2006 - 10:54
Total Replies: 21
What are the consequences of a Payday Loan?
The cost of the loan is very high.
Once you get a loan, where will you get the additional money to pay it off?
You can be threatened with prosecution for "hot" or "bounced" checks, even though the lender knew at the time you wrote the check that you had insufficient funds in your account—that was the reason for the loan. This is not allowed in Indiana.
If you pay another fee to renew the loan for another term, you may get caught in a cycle of debt. You are never able to pay down the principal, but you are repaying the fee over and over again. The result can be that you are paying an annual percentage rate on the loan of well over 1000 percent! The maximum apr in Indiana is now 390% for a loan up to $250 at 15% for 14 days.
I am glad you found this. I know Indiana has some pretty strict
I am glad you found this. I know Indiana has some pretty strict laws dealing with pay dayloans. Keep up the good work!
We are all becoming very aware of the laws in our states regardi
We are all becoming very aware of the laws in our states regarding payday loans. Arm yourself with as much knowledge as possible when dealing with the loan sharks and let them know that we know that they are violating our laws in the states we reside in.
Jo, I am from Indiana too. I am trying to find out what can be
Jo, I am from Indiana too. I am trying to find out what can be done.
According to the Indiana statute, if a consumer made a loan with a lender that is NOT licensed in Indiana then the transaction is considered to be void. I dont know if that applies to the internet lenders?
Just kinda wondering if any of my loans are from lenders NOT lic
Just kinda wondering if any of my loans are from lenders NOT licensed?
it should, but you'll probably have tyo fight a little to get th
it should, but you'll probably have tyo fight a little to get them to back off.. use the law to your advantage, however the right thing to do would be to repay at least the principle, and any interest allowed under the law..
That is what I intend to do, repay at least the principle and an
That is what I intend to do, repay at least the principle and any interest allowed under hte law. However, I have been paying OUTRAGEOUS interest for months now and never seemed to pay down the principle.
I would love to use the law I just dont know any of it....I'm le
I would love to use the law I just dont know any of it....I'm learning though :)
Just curious Sapphiredreams where abouts are you? Maybe we have
Just curious Sapphiredreams where abouts are you? Maybe we have the same loans :)
I also live in indiana. I want to make sure that i understand th
I also live in indiana. I want to make sure that i understand this correctly.
If i took out some internet payday loans and the companies are not licensed in indiana then those are considered void? What approach should be taken when in fact if they are not licensed in indiana?
If i lived in indiana and took a pdl out in il (in person at a store) would you go by indiana or illinois laws?
Thanks for any info.
Northwest Indiana (South Lake County) Also, I just wanted to
Northwest Indiana (South Lake County)
Also, I just wanted to post those laws I discovered to ease the minds of people like me who took out payday loans and could not keep up. To reassure anyone that NO ONE WILL GO TO JAIL for not keeping up on the loan payments! Not to give in to the scare tactics and to arm yourself with knowledge.
If the lender is not licensed in Indiana, they are NOT allowed to take you to jail or seek damages, PERIOD! Do not fall for stronghold tactics by those collectors!
The honorable thing to do is repay the principle at the least and the interest allowed under Indiana laws.
Quote:If i took out some internet payday loans and the companies
Quote:
If i took out some internet payday loans and the companies are not licensed in indiana then those are considered void? What approach should be taken when in fact if they are not licensed in indiana? |
That is a good question. Let me research this further.
Okay....I found a statement by the Indiana Attorney General, Jef
Okay....I found a statement by the Indiana Attorney General, Jeff Modisett, that I find very interesting and helpful.
"Lenders that assess a loan finance charge in accordance with Indiana's consumer credit code are still subject to Indiana's loansharking statute. Finance charges that exceed the statutory limits outlined in the consumer credit code are subject to refund. If the finance charges are more than double the APRs set out in Indiana's consumer credit code, they violate the loansharking statute and are void."
Interesting....Now if we just had a list of the companies that w
Interesting....Now if we just had a list of the companies that were NOT licensed.......
I think that everyone from Indiana ought to get together and see
I think that everyone from Indiana ought to get together and see what can be done and see if lenders are licensed for our state or not! :)
I'm working on it. I am going to contact Attorney General to ge
I'm working on it. I am going to contact Attorney General to get more information and hopefully a listing of payday lenders that are licensed. Then we will go from there.
Update: Okay, the licensing does not apply to internet-based
Update:
Okay, the licensing does not apply to internet-based payday lenders. If the payday lender does not have a physical location of Indiana, then it does not apply to them. The statutes only apply to the PHYSICAL location of the payday lender. Hmmm....need to research this further.
Okay, the Attorney General's office wants me to submit the compl
Okay, the Attorney General's office wants me to submit the complaint in writing and they will assist me further.
Jo, it doesnt. The attorney general's office stated that they C
Jo, it doesnt. The attorney general's office stated that they CAN work with us and help us battle this.
The information about licensing was by the rude guy on the general customer credit care Indiana line. After I hung up, I researched some more to find the direct phone number to the Attorney General's office. Whew, after the phone call, I got some of my hope back! ;)