PAY LOAN HELP!!!

Louisiana State Information

Legal Status: Legal

Citation:
La. Stat. Ann. ???? 3578.1 et seq.

Loan Terms:
Maximum Loan Amount: $350
Loan Term: 60 days
Maximum Finance Rate and Fees: $5 documentation fee + the greater of 16.75% of check or $45 (After default: months 1-12: 36% per year; months 13 and beyond: 18% per year)
Finance Charge for 14-day $100 loan: $25
apr for 14-day $100 loan: 650%

Debt Limits:
Maximum Number of Outstanding Loans at One Time: Not Specified
Rollovers Permitted: None (cannot renew or rollover but licensee may accept partial payment of 25% of amount advanced plus fees and enter into new loan)
Cooling-off Period:
Repayment Plan:

Collection Limits:
Collection Fees: One NSF fee of actual bank charge (if disclosed) + the greater of $25 or 5% of check (if disclosed); Court Costs; Reasonable Attorney's Fees
Criminal Action: Prohibited

Where to Complain, Get Information:
Regulator: Louisiana Office of Financial Institutions
Address: P.O. Box 94095 Baton Rouge LA 70804
Phone: (225) 925-4660
Fax: (225) 925-4548
Regulatory Contact: John J. Braud,, Deputy Chief Examiner


Email from the DFI and Whitenan:

I emailed John Braud, Deputy Chief Examiner of LA Office of Financial Institutions and asked him, if internet payday lenders(not residing in Louisiana) who lend money to residents of Louisiana, have to be license in Louisiana or do they just have to have a license in any state.

Response:

You probably had difficulty finding information on this issue because activity commonly referred to as "payday lending" is subject to the Louisiana Deferred Presentment and Small Loan Act, LSA R.S. 9:3578.1 et seq. These loans are consumer loans subject to the Louisiana Consumer Credit Law, LSA-R.S 9:3510 et seq.

C. Except, as otherwise provided herein, that following agreements by a consumer are invalid with respect to consumer credit transaction, or modifications thereof, to which this chapter applies;
1. by which the consumer consents to the jurisdiciton of another state.
2. the fix venue

Therefore, the above provisions require that all consumer loans made to Louisiana residents should comply with Louisina laws, but lending licenses are issued to persons with business locations in LA.

John Braud
Cheif Examinor
Office of Financial Institution

Other emails from me to DFI:

Hello,

Do internet based payday loan companies need to be licensed by Louisiana to lend legally in Louisiana? Or can they be licensed in their home state as long as they don't have a physical location in Louisiana?
I have several payday loans and they are all licensed in other states.
They say they don't need a Louisiana license, and looking through the list of licensees I don't see any that are not located in Louisiana. Is that correct?

Thanks!

Response:

Ms. :

Lenders who do not have a physical locations in LA do not qualify for licensure. Those who have licenses are listed on our web site at ofi.louisiana.gov if you would like to do business with one of them.

John J. Braud
Deputy Chief Examiner
LA Office of Financial Institutions
(225) 925-7762
(225) 925-4524 FAX

What does this mean?

Internet companies must comply with LA law.

Internet based lenders with no physical location can't have a license from LA. They are all illegal unless they also have a physical location in LA.

Specific amounts may be charged.

No rollovers are allowed, however, they can allow you to pay 25% of your principle, and the fee, and then do a new loan.

Some of the emails courtesy of Whitenan. Thanks!