Governing law?
Date: Thu, 11/22/2007 - 01:31
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Quote:What exactly does the term "GOVERNING LAW" mean?
Quote:
What exactly does the term "GOVERNING LAW" mean? I am in Ohio, and have learned from reading various articles here that PayDay OK does not have a license to provide internet loans in this state. My response from them regarding that was: In response to your statement that Payday OK serviced your state illegally, please refer to section titled "GOVERNING LAW" of your signed Payday OK contract. ??? |
I do not remember anything about "GOVERNING LAW" when I took out my loan with them, and I can no longer get into my account to check my loan agreement.
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sdean, all pdls will state that. They are claiming that THEIR law is the "governing law". In other words, where they are over-rides your state law. This is not the case in 90% of pdls. Hell, there are illegal pdls that will tell you the "governing law" is friggin Malta or Ireland or some island in the middle of the ocean. As you go along, if you come across any other pdls that are not licensed in your state, you will find that they will all claim the same exact thing.
They cannot pick and choose which juristiction the contract will
They cannot pick and choose which juristiction the contract will follow. Your state laws prevail.
Actually, people entering contracts can pick any law to govern t
Actually, people entering contracts can pick any law to govern the transaction as long as it "bears a reasonable relationship" to the transaction. That's from the Restatement of Contracts, if anyone wants to look it up.
What has happened is that the federal court in Kansas has decided that states can impose their consumer protection laws on consumer lenders (like Payday OK) if the borrower is a citizen of their state. In other words, the Ohio banking authorities could go after them for violating Ohio law. But the court wasn't asked to decide whether a private citizen can do the same or if they are stuck with the law of the contract. We need someone to bring a test case to decide that question.
You are correct freakyfriday...when I said "they", I meant the p
You are correct freakyfriday...when I said "they", I meant the pdl's. I do realize that in general, applicable law and venue can be specified.
Quote:Actually, people entering contracts can pick any law to go
Quote:
Actually, people entering contracts can pick any law to govern the transaction as long as it "bears a reasonable relationship" to the transaction. That's from the Restatement of Contracts, if anyone wants to look it up. What has happened is that the federal court in Kansas has decided that states can impose their consumer protection laws on consumer lenders (like Payday OK) if the borrower is a citizen of their state. In other words, the Ohio banking authorities could go after them for violating Ohio law. But the court wasn't asked to decide whether a private citizen can do the same or if they are stuck with the law of the contract. We need someone to bring a test case to decide that question. |
The what you are saying here is, since I signed the contract, I decided to accept their terms of service, whether they were licensed in the state of Ohio, or not. Therefore, there were no illegal transaction made here - by PayDay OK?
Not really. What I'm saying is you have a good, strong argument
Not really. What I'm saying is you have a good, strong argument that Ohio law applies not matter what was agreed to in the contract. But a lot of people on the board think the Quick Payday decision made it an automatic thing, which it didn't since it wasn't a case about a loan contract. (It was about the state of Kansas trying to apply its licensing laws to a Utah company.) I would love to see a test case brought to decide this issue once and for all.
Governing Law
Thank you for your response. I really think these payday companies that takes advantage of people when they are down needs to be punished for not following the law.
I agree Freaky - A test case would be wonderful! Things are nev
I agree Freaky - A test case would be wonderful! Things are never 100% black or white in law . . . . There is always room for interpretations.
