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Payday loan laws in Kentucky

Submitted by Art Vandelay on Tue, 05/16/2006 - 07:41
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Can anybody help me find the laws regarding payday loans in the great state of Kentucky? I plan on sending "the letter" to our friend quick payday and I want to have my figures right. Also, should I email them the letter or send it by snail mail?


i live in ky,but i did a payday loan over the internet,i cannot afford this anymore,could i close my checking account so they cant get money and call them to work out a payment plan.


Submitted by on Sat, 09/27/2008 - 05:22

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did kentucky change any laws for payday loans for 2009? where can i find this ifo?


Submitted by on Tue, 10/14/2008 - 08:24

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I live in KY and recently just got all my internet payday loans closed and marked paid in full. I contacted the KY Office of Financial Institutions and they informed me that internet payday loans are illegally in KY and that you are not obligated to pay them (although I did pay what was left of the prinicpal on one of my loans because I did take the loan out so it was the right thing to do). They would have to be licensed in KY and to be licensed you have to have a storefront so, KY doesn't license internet payday lenders, so that's why they are illegal in KY. I had already the principal off on the other two loans through all the fees they had taken from my account. I am thankful I found this site or I would still be paying on these loans. Check to see how much in fees you have already paid, it may be over the amount of the inital loan. Send them the letter for payday loans stating that they are illegal in this state and you are only willing to pay what you have left on the prinicpal (if your fees haven't covered it already). Then I filed reports with the BBB and the KY AG office and the FTC. Hope this helps. Oh the the KY laws are at lrc.ky.gov/statrev/frontpg.htm (it should be KRS 289.9-100)


Submitted by tiffanicjackson on Wed, 10/22/2008 - 06:53

tiffanicjackson

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I am reading through this site and just saw a posting from October, 2008 made by "tiffanicjackson". you stated you live in KY and recently got all of your internet payday loans closed and marked paid in full, HOW DID YOU DO IT????? I have like 9 outstanding internet payday loans, they took so much out of my checking account this month that I am $1000 OVERDRAWN. I'm desperate, I cant sleep, I'm a nervous wreck all of the time and am fearful of losing my job. How did you manage to do this? PLEASE HELP ME :cry:


Submitted by on Wed, 02/18/2009 - 12:09

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beli2005,
thank you for the link...I am at work right now but plan on logging in tonight and reading through all of this. I also read in a different posting on this forum where a guy was talking about entering all of his info into this site so he could try to get some help. Am I supposed to be entering information somewhere to become a member of this forum or something?
thanks for all of your help!!


Submitted by on Thu, 02/19/2009 - 05:40

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You can become a member but you don't have to but it does make it easier to keep up with your posts. We recommend you create a new thread.

What we usually ask is...
The names of the PDLs?
The state you live in?
Are they internet or store front loans?
How much have you borrowed?
How much have you paid back including any fees?

That way we can help you more.


Submitted by nohiogal on Thu, 02/19/2009 - 07:13

nohiogal

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Hey sleepless. I basically followed the advice of the posters in this forum by sending all my IPDLs the letter I found on this forum. I actually paid what was left of the prinicpal on one ($30), one they actually refunded some of the fees back to me and the onther one was just marked paid ing full. With the letters I also sent correspondance from the KY Department of Financial Institutions that furhter emphasizes the fact they IPDLs are illegal in the state. Hope this helps. Good Luck


Submitted by tiffanicjackson on Wed, 02/25/2009 - 11:16

tiffanicjackson

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I have a $500 payday loan out in KY. I cannot pay this until August 25th and they will not hold it until then. I don't have any money in my checking. They are going to run it through tomorrow and it will bounce. What can I do? I don't want to go to jail


Submitted by on Fri, 07/31/2009 - 06:53

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I have several payday loans out and I live in KY. I have sent letters to all thanks to wonderful advice on this website. A few stopped the ACH debit the next day but I have one that is threatening to report me to the 3 major credit bureaus. Can they do that?


Submitted by on Sun, 12/13/2009 - 18:56

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You are not required to worry about these loans since they are operating illegal payday loans and this is the maximum that they can do to report to credit bureaus. Just hang up the phone on them and do not respond to their calls other than keep on sending certified letters to them.

You can file your complaints online against payday lenders with FTC, BBB and your state Attorney General's Office. Now, be prepared to receive threatening calls from your payday lenders after they come to know what steps you have taken against them.


Submitted by markstacey2 on Sun, 12/13/2009 - 21:29

markstacey2

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The Ky Dept of Financial Institutions is a great resource! Contact their office with any questions/complaints. They will send you an up to date legislative stand on internet lending in KY -- basically, internet lenders MUST be liscened in KY to be in compliance with the law. As you can guess, most online lenders are NOT.


Submitted by on Mon, 12/14/2009 - 12:06

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So I've read all of this and it seems helpful does anyone know the financial institutions # for ky??? Also I cant afford to pay them right now and they are gonna overdraft my account can I close my account?? Can they get me for fraud for doing this or theft by deception???


Submitted by on Wed, 01/13/2010 - 11:58

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Kentucky Department of Financial Institutions has been a big help to me as well.
Phone: 800-223-2579

http://www.kfi.ky.gov/complaint/ficomplaint.htm

This link it to their complaint page with a link to a word document that you can submit. It gives you the email address, phone number and fax number of the investigator Andie Cubert.

I had to close my account but talk to your bank. Some banks will reopen the account if transactions come in. I had to put a ACH hard hold on my account to get them to stop.

Please search this site for Payday Loan Form Letters and read the posts for some valuable information on what you should do and when.


Submitted by on Wed, 01/27/2010 - 08:38

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[QUOTE=;][/QUOTE]
Hello I am currently out of work in Louisville, KY. I have applied to most of the job sites more times than thousand times and applied to 100s of positions. However, i have not been able to find a single good response to my resumes. If anyone knows about particular job site where i can look for a good job, please reply me with the location details. I will be thankful to you for your early response.


Submitted by on Tue, 04/20/2010 - 19:55

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Kentucky law requires that each payday location obtain a license. In other states, as long as one of the institutions has a license, the other locations can operate under the same license. As with other states, Kentucky law requires that any fee being charged by the payday loan lender be disclosed in writing before the transaction takes place. Also, the fee in the contract must be referred to as a service fee and not interest. Kentucky also enforces advertising laws. In Kentucky, a payday loan store cannot advertise check-cashing services without requiring identification. In Kentucky, a consumer can still borrow a payday loan even if they have an outstanding loan balance. So long as the face value of both loans doesn???t exceed $500. The maximum amount that any payday lender can lend in the state of Kentucky is $500. The maximum term limit applied on payday loans in Kentucky is 60 days. Kentucky law protects consumers from getting sued for defaulted payday loans. In fact, each payday loan store in Kentucky is required to prominently display a sign that says ???No person who enters into a post-dated check or deferred deposit check transaction will be prosecuted or convicted???.


Submitted by Van Cliburn on Thu, 04/29/2010 - 12:20

Van Cliburn

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Hey guys. Need some help. I sent a letter to an internet payday loan company. I've already paid my principle plus some and they are debiting my account 50-75 a week. I only borrowed 300. I've paid back 335 so far.

I used the template on this site for the letter and they sent this back to me today.

"
We have received and reviewed your correspondence regarding your complaint with DJR Group, LLC.

While the information that you have collected may apply to companies that have physical locations in your state, it is our opinion that it does not apply to our internet business model. This is based on sound advice from our legal department.

The money was lent to you in good faith with the understanding that you would abide by the terms detailed in your loan contract. We upheld our end of the agreement by crediting the funds to your account in a timely manner. The Loan Note and Disclosure that you e-signed and thereby agreed to is very detailed and clear so as not to cause any confusion to the borrower, and meets all the Truth-In-Lending and Reg Z requirements as prescribed by Federal statute.

Upon review of your account history, you clearly knew all terms and conditions of your loan. We have all the legal contracts you signed, in which you agreed to terms and conditions of the loan.

Thank you for your time and consideration in this matter.

Respectfully,

Compliance Department"

How should I respond?


Submitted by on Mon, 05/17/2010 - 07:13

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I would close my Account first and foremost. Then I would send another letter stating the laws of Kentucky and that you have no intention of making another payment.

Then if they continue collection and or file a civil motion, you fight it. Simple as that.

Any judge will throw the case out.


Submitted by on Mon, 05/17/2010 - 11:54

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I got a payday loan online and failed to pay it back because I lost my job. They kept calling me and threatning to have me locked up and everything else. I contacted my lawyer and he basically told me to tell them to go to hell. When they called back I told them I had spoken to my attorney and YOU CANNOT go to jail over a payday loan because the company knows that the check is bad to begin with (DUH...why else would you need to borrow the money..lol)_I told him that his company was NOT licensed in KY and there was nothing more we had to discuss, thanked him and told him to have a nice day! LMAO haven't heard from them since!


Submitted by on Sat, 08/07/2010 - 12:04

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Quote:

Originally Posted by Anonymous
I got a payday loan online and failed to pay it back because I lost my job. They kept calling me and threatning to have me locked up and everything else. I contacted my lawyer and he basically told me to tell them to go to hell. When they called back I told them I had spoken to my attorney and YOU CANNOT go to jail over a payday loan because the company knows that the check is bad to begin with (DUH...why else would you need to borrow the money..lol)_I told him that his company was NOT licensed in KY and there was nothing more we had to discuss, thanked him and told him to have a nice day! LMAO haven't heard from them since!

I do hope you at least paid back the principal amount.


Submitted by Shazzers on Sat, 08/07/2010 - 19:20

Shazzers

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I just wanted to take a minute to say thank you to the arbitrators on this web site. I stumbled on this web site over a year ago and at that time had approximately 12 outstanding pdl's. None of them were store front all were over the internet. The majority of them PDL's had more than received their funds back through all the excessive interest I paid week after week and as a result I owed very few people principle, although there were a few.
Now a year later, I am still getting a few sporatic phone calls but generally either it's an automated system or their automated system leaves a voice mail message and I probably only get calls a couple of times a week. Lots less than before.
I was literally worried sick when I first found this site. I have lenders that aren't paid off and after this peirod of time, I've come to realize they can do nothing more than harrass you!
THank you so much to those who helped me get my life back in order!


Submitted by on Tue, 08/10/2010 - 14:21

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I am in KY. I have internet payday loans. when I e-mailed the letter to the company that I knew they were illegal in my state, I received a response back that when the loan was e-signed I forfeited my rights in KY and I am bound by the laws of the state they are operating out of. does anyone know if this is true or just another lie by them?


Submitted by on Wed, 09/08/2010 - 13:18

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Where can I find a copy of KRS 289.9-100? I looked at the link that was posted on this site but am unable to find any info? I had an internet payday loan taken out in September of 2008 for $300........They took out a total of $735 from my checking account and I had to close the account. Now am I am getting a call from a "collection agency" who is saying I am in litigation because I still owe them $320! I found some info on the kentucky.gov website, but I feel I need more to fight with these people, as I feel I don't owe the anymore money!


Submitted by on Wed, 02/09/2011 - 17:50

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