Heard from the DFI...

that was my post...I thought I was logged in, but I wasn't.

I'm sorry Godzuki...it's possible after hearing from your DFI you may not hear from your AG. In my state they kind of work together. I would call back and ask if that means since they are not licensed if they can still be concidered legal?? Or does that mean you have to follow their state laws...are they licensed in their state?? If they are not holding a license anywhere how can that be legal??

I agree Morning, how can that be? It doesn't make any sense...

I know...hopefully one of the others will be along soon to give us more insight..:)

I'll bring the letter tomorrow and type it on here word for word...I haven't actually seen it...my wife just read it to me. But, it sounds like TN is taking the wait and see approach with the gray areas of this whole thing, content to let other states lead the way and then possibly follow later.

I see that payday loans are legal in TN, but if they are internet based, this doesn't apply right? They need to be licensed in the state they're lending in, which they probably aren't.

None of MTE, Sonic, or UCL (the companies I am fighting)are licensed in TN. That's why the DFI says it's not their problem. They only settle things with licensed companies in TN. If they were licensed in TN, they probably would have been following the state laws the whole time and I wouldn't be complaining (duh). That's the problem and why it's gray. So, the DFI just says...not our problem.

I'm hoping though, that the AG will see that lending in a state where you are not licensed is a problem nd it should be dealt with.

I hope so too. Keep us posted.

I am bumping this post up for goudah to see. She knows a lot about the different states and their laws. :)

If they are not licensed, the one good thing is that they have no collection power. MTE will eventually turn you over to a collector who wil not be able to validate the debt properly. So you will be off the hook with that one. Sonic will try to intimidate you but don't let them. Make sure you have revoked any wage assignment agreements that they have and show the letter to your payroll person.

Yeah, I have an email in to the guy I know at the DFi there, asking this question. It seems that TN may only license companies physically located in TN. Which means that as long as the company is licensed in another state they would be lending legally. Now, if the company isn't licensed anywhere, they are totally illegal.

There are a couple other states like this. Not all states will license companies not located there, so when people say that the company must be licensed in that state to lend it is a generalization and not correct for every state.

As soon as I hear back from the DFI I will post my response . . . . Hopefully it is soon . . . . .

Goudah,

The way I understood the letter...they weren't saying whether it was legal or not for an internet company to loan in TN...they just stated that they wouldn't get involved in disputes about such matters. Be sure to let me know what you find out, though.

Goudah will...she is a God send when it comes to these states and the laws...she helped me get an answer from Indiana when I called 3x''s and was still confused!!

Don't expect any help from Tennessee on storefronts either. I had paid one company a fortune and they didn't do a thing about it except get the storefront to write me a letter denying my claim.

I would think that they would only be able to intervene with storefronts if the storefront was breaking a law. Otherwise, the storefront would be perfectly within it's rights to collect the legal amounts.

Jan - Was the company operating legally? Was it a situation where you had the loan for forever and that's why you'd paid a fortune? Or was the storefront charging more then legally allowed?

I had storefronts in TN and they have all operated under the laws of the State. I have had them for about three years...so Yes, I too have paid a fortune on them...but they didn't break any laws so I still owed them their money. The stores were all pretty good about working out payment plans with me, though.
Sadly, it seems like the only way DFI in TN is going to do anything is if a licensed financial institution located in TN breaks a law. They don't care how much you've paid to a legal lender or how much you say you don't owe to an illegal one. They're not getting involed.

That's kind of what my letter says. If it's a black and white law violation for a licensed business in TN..we'll look into it. If it's a gray area...you're on your own...get a lawyer.

Yeah, a lot of the states are like that. It's "too hard" or "too much work" to deal with lenders not located in their state. And the ipdl's know this, that's why they go around breaking so many laws, knowing that the odds are greatly on their side that they will get away with it. :twisted:

Dont want to sound stupid, but what exactly is a DFI?

However, in order for them to try and do any sort of prosecution of any kind...they would have to do it in TN...since that is where I reside. Not in NM, or AZ, or DE, or freaking Malta...and I bet if they tried that crap...my State would get involved.

DFI I believe is the Department of Finance.

Department of Financial Institutions...They regulate the lending laws of your particular state.

anyone have contact info for NYS DFI?

1-877-BANK-NYS

From what I've read on here...The NY Attorney general and DFI have a lot more balls than the ones in TN...so I'm guessing you'll have better luck.

godz - another forum member is in TN and was posting regarding correspondence with the DFI. They way they answered that was that if the entity was not located in TN, then the laws of the state the pld's are in would be applicable. In other words, TN isn't going to do squat because the pdl is not physically located in TN. However, check to see if the pdl's (and I don't think they are) are even licensed in their states to do business. We know they are not. So that may be your saving grace. If they're not licensed to do business anywhere, they are flat out illegal. Just my 2 cents from previous posts.... I'm sure goudah will find out more.

The only one I could find that was actually licensed (at one time) was the DBA of MTE I'm delaing with in NM...but, it looks as if their license has expired and was not renewed.

Yep - Cannr is right. If they aren't licensed anywhere then they are flat out operating illegally. Some ipdl's are licensed, normally in the states with the laxest laws, of course.

Sent out another email . . . . Beginning to think maybe the guy is on vacation or something . . . . In the past he has always responded to my emails within a day. We'll see . . . .

Godzuki - I can't find the post in which you list the companies you are dealing with - If you could direct me to it or list them here (just the names) I can do a quick search for you too . . . . If you want.

goudah, the ipdl's are MTE (which one didn't state), Sonic, and United Cash Loans. None are licensed.

It really depends whether your home state has enacted long-arm statutes -- whether your state forces lenders to comply with state laws when they are doing business inside the state, or whether your state allows them to follow the laws/license of their own state.

There are few states that do not actually require them to be licensed in your state, as long as they hold a license in another state (which the PDLs usually use Nevada or Delware as a home base). Pennsylvania is one, looks like TN may be another.

If that is the case, you should at least make sure they are complying with their own state's laws.

You should also make sure that they are following Federal laws, such as Reg Z and the Credit Practices Rule

If they are violating any federal laws, then get the FTC involved.

ameriloan (MTE)
Sonic Payday (Coastline Credit, Northway, etc..)
10 dollar payday (quickest cash advance) (MTE)
USA Payday Loan (UCL) I think?
AeroAdvance
Discount Advances.com

Here's my list. Any idea about these PDLs being licensed anywhere? Thanks!

Sorry, that ws me above...I always forget to sign in.

We know MTE is not licensed and Sonic (or whatever name they go by today) is not licensed. I don't know about the others. Anyone????