CashNet/Check Giant refuses to recognize state laws
Date: Tue, 06/13/2006 - 10:31
We did recieve your fax. Unfortunately you signed a contract under the state of
New Mexico that is the reason you were issued a loan. We do not do business in
the state of New Jersey. We are in compliance with the state of New Mexico. And
that is why the interest is that amount.
Please contact us with any further questions.
linnie, reply back to them that based on the laws of your state
linnie, reply back to them that based on the laws of your state their statutes appply to anyone doing business with residents of that state. State that federal case law has held that "long arm of the law" provisions are valid and enforceable in state and federal courts. If you can obtain an interpretation in writing from your state AG, you can send that along as well. Also, I am aware of an attorney practicing in PA and NJ who likes to represent creditors. pm me and I can give you his website.
Here is what I wrote back
lived in Pennsylvania when you extended the loan to me. I have included their usury law on my letter as well. I now live in New Jersey, I did change my address on your web site. Regardless, PA and New Jersey has simular laws protecting consumer's from usurious activity. PA's interest cap is even lower than New Jersey.
My bank has opened a dispute and all transactions are blocked as of yesterday due to usurious activity regarding CashNet USA/Check Giant. They will continue to monitor my account and any attempt from you to debit me will be not only blocked but investigated by my bank.
Unfortunately, you must adhere to state laws when lending money outside of New Mexico. Residing in New Mexico does not protect you from state's individual usury laws. Statutes appply to anyone doing business with residents of that state. Federal case law has held that "long arm of the law" provisions are valid and enforceable in state and federal courts. You might want to view the information below.
Quote:
Prohibited by Small Loan Laws or Usury Caps Currently twelve states and two territories have small loan laws or usury caps that effectively prohibit payday lending at triple-digit interest rates. In Arkansas , the state Constitution caps rates at 17% annual interest, but the legislature enacted a law that permits check cashers to make single payment loans based on check holding. The constitutionality of payday lending at triple-digit interest rates in Arkansas is being challenged in the courts. ( Arkansas 1) Connecticut Georgia Maine 2 Maryland Massachusetts New Jersey New York 3 North Carolina 4 Pennsylvania Vermont West Virginia Puerto Rico Virgin Islands Pennsylvania State Information Legal Status: Prohibited Citation: Check cashers are specifically prohibited from making payday loans under Check Cashing Licensing Act of 1998, ?? 505(a). Otherwise, consumer discount company act applies. 7 Pa. Cons. Stat. Ann. ?? 6201 et seq. Small Loan Rate Cap $9.50 per $100 per year discount or 24% per year Where to Complain, Get Information: Regulator: Pennsylvania Department of Banking Address: Market Square Plaza, 17 N. Second Street Harrisburg, PA 17101 Phone: (717) 214-8343 Fax: (717) 787-8773 Regulatory Contact: Jim Keiser, Administrator of Non-Depository Institutions Regulator's Website Complaint Form Complaint Instructions Online Resources: |
http://www.paydayloaninfo.org/lstatus.cfm
Please consider forwarding my fax to someone other than customer service. I don't think customer service would want to be responsible for legal decisions.
Regards