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Ohio law on PDLs....

Date: Mon, 05/01/2006 - 13:03

Submitted by Jessi
on Mon, 05/01/2006 - 13:03

Posts: 3361 Credits: [Donate]

Total Replies: 19


Ok, so I got bored today and called our Ohio office of Consumer Affairs and talked to George Paree, one of the workers in that office that deals with PDL's.

According to him...

Any lender that charges MORE than 8% interest on a loan, HAS to be licensed in Ohio. Whether that be a business license, or a banking license, or a small loan lending license..They have to have A license.

The fees are no more than 5% of the total loan amount and a $5 loan origination fee...Which on a 200 loan, would be $30 per month, or partial month. (So if it's a bi-weekly deal, it would be $60/month)

They CAN NOT take you to court anywhere but in your state of residence....No matter what they tell you. And guess what would happen if they DID actually take you to court in your home state and they are not licensed? THEY WILL BE ARRESTED! Yes, that is correct. They will go to jail for lending money unlawfully.

So if you've paid more than your state law regulates...THEY CAN NOT TOUCH YOU.


Some of the big payday loan companies are not complying with the state laws in Ohio. In order to put that triple digit interest rate into effect, they are hiring the bank charters for avoiding the regulations. Hiring a bank for the payday loan lending is growing in Ohio and this means that more consumers are getting trapped. Be careful and know the laws in your state before you find yourself in a serious situation.


lrhall41

Submitted by david on Mon, 05/01/2006 - 13:48

( Posts: 1229 | Credits: )


LOL Or put it in a "Hall of Shame" LOL

I know this was a big relief for me, even though I finished with these already..It's a relief for all of you guys that are still working with these animals.

Find out your state laws, and what you would owe...Tell them THAT'S IT, and if they threaten court, tell them to BRING IT!


lrhall41

Submitted by Jessi on Mon, 05/01/2006 - 14:01

( Posts: 3361 | Credits: )


David,

I am dealing with Universal Cash Advance now, the funds were dispersed by the First Bank of Delaware. I understand where you are coming from and this situation is being pursued by me. I have given the info to the Ohio Division of Financial Instititutions for review and how to proceed next. They state that I owe $400. Universal received payments from T &C for three months and they were cashed. However, I was turned over to a CA and they have not received the funds. I also sent them a debt validation letter in January via certified mail with return receipt requested. They claim they never received the letter but I have proof that they did. First Bank of Delaware responded to a nasty gram that I sent to Universal Cash Advance stating they didn't have to be licensed in Ohio since they are a state chartered bank. I am waiting to hear back to see how to proceed with this because I was over charged per state laws. Also, I have forwared the information onto the consumer protection office in Georgia where payday loans are illegal. Universal Cash Advance has a Georgia address so I thought I would take a shot. First Bank of Delaware does not do payday loans anymore.


lrhall41

Submitted by Cow & Chicken on Thu, 05/04/2006 - 13:39

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Mishele,

This is ridiculous. You have sent payments through T&C and you have proof of the payments cashed, in spite of that how can Universal say that they have not received the money. Send a copy of your bank statement to Ohio Division of Financial Institutions and keep the straight facts in front of them. I don't know why some companies are trying to deceive people in spite of the fact that they are receiving the payments regularly. I feel very sad on what you are going through.


lrhall41

Submitted by david on Thu, 05/04/2006 - 14:06

( Posts: 1229 | Credits: )


I'm discovering alot of useful info. since signing up with this website. Especially about Ohio PDL laws. Two of the four pdl loans I have are with ASAP and ameriloan. I think I read a post somewhere that they are not licensed. What happens if you don't pay an unlicensed lender in Ohio? I read a post that if they take me to court in Ohio they get arrested. All of my pdls were acquired on the internet. The others are with Cash Supply, Xpress Cash (DMS Marketing, that's who is reported on my bank statement)


lrhall41

Submitted by WHEREAMI? on Sat, 08/26/2006 - 19:53

( Posts: 5263 | Credits: )


Welcome Amy,
Glad you're finding your way around the site. Everyone here has had some experience with one or all of those pdl's.
I had one with Cash Supply...they were infact the easiest to deal with and will settle with you if you dispute it...
As for the others, they're probably not licensed in Ohio and will only harrass you for the money if you default. They won't come to your state to sue. ALot of them will put you into an outside collection agency.
If you've paid back the original loan amounts plus the appropriate interest for your state, then that is it.


lrhall41

Submitted by erzeke1 on Sun, 08/27/2006 - 00:37

( Posts: 1145 | Credits: )