Help!! Emails from Urgent Cash Advance!!
Date: Tue, 08/26/2008 - 11:52
Address of UCA is in NC, where pdl's are prohibited. Sent letter of revocation of wages, said they were illegal, wanted to set up payment arrangements...these are the responses I have received, where should I go from here?? Thanks!!
Again you are incorrect, we are not set up in NC. We are only based in NC.
----- Original Message -----
From:
To: jlong @ urgentcashadvance.com
Sent: Tuesday, August 26, 2008 1:18 PM
Subject: Re: UCA
Payday loans are illegal in the state of Pennsylvania. PA law states that their law then defers to the law of the state the payday loan is taken from, which is North Carolina. Looking at North Carolina law, it looks like Payday loans are illegal there also.
I have not filed complaints, just stated that I needed to communicate through mail or email, not call my home or work. I have no issue with this so far, we have been communicating through email, for which I thank you.
I do not dispute that I have a debt. I jsut can't keep paying the interest on it because of hour cutbacks, until I get a new job, get back to full time status, or find a part time job. Until then, I need to set up a payment plan, once I am financially sound, can pay off the loan.
Your company has always been easy to work with, I am hoping we can come to an agreeable arrangement, so this can be resolved over the next few months.
I have attached the PA law, and a note from the regulator of the Department of Banking.
Thank you for your time.
Colleen
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. An n. § 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
http://www.banking.state.pa.us/banking/site/default.asp
Emails to and from PA Banking Dept
Hello,
I have a question about payday loans in Pennsylvania. Does the small loan rate cap of $9.50 per $100 per year discount or 24% per year apply to these loans? I took out a few on the internet and am trying to figure out how much I legally need to pay. For instance on a $200 loan would I be legally responsible for paying back only $248?
Thanks!
Response:
Dear Ms.:
The 9.5 discount and the 24 % simple interest refer to calculations that can be used by companies that are operating in Pennsylvania and are licensed under Pennsylvania’s Consumer Discount Company Act. With a number of exceptions, a lender that is located inside of Pennsylvania and who does not have any special lending authority (i.e., a20special license or charter) who is making smaller loans not secured by real estate can only charge interest at a rate of 6% simple.
A lender that does not have a physical presence in Pennsylvania but who has lending authority from some other state can generally charge the interest rate and finance charges allowed by that other state.
The Department may or may not be reviewing this policy and I would not count on this e-mail as an interpretive opinion before starting any lending or business operations.
James Keiser | Administrator Non-Depository Institutions
17 North Second Street, 13th Floor | Hbg PA 17101
Phone: 717.783.8242 | Fax: 717.787.8773
jkeiser(at)state.pa.us | www.banking.state.pa.us
What does this mean?
There are no storefronts in PA. They are illegal.
Internet lenders can lend legally to PA residents as long as they are licensed in another state. They would need to follow the laws of the state in which they are licensed.
-----Original Message-----
From: Joe
To:
Sent: Tue, 26 Aug 2008 11:45 am
Subject: Re: UCA
I have received your e-mail and your letter is being reviewed by our legal department.
The contention that you have protections due to the fact we do not have an individual license for your state is not correct, as we have criminally prosecuted individuals in Pennsylvania for theft by deception.
The balance your provided is also incorrect, as your refinances do not count toward your principle balance. Your balance is $500.00.
UCA is considering how the company will proceed in this matter and if they will consider your payment request, considering the stance you are attempting and your threats to file complaints.
----- Original Message -----
To: jlong @ urgentcashadvance.com
Sent: Tuesday, August 26, 2008 11:31 AM
Subject: Re: UCA
Hello Mr. Long,
I email ed you yesterday, and am sending you a letter today. I would like to set up payment arrangements as soon as possible on my balance, to show that I would like to resolve this matter quickly. Please only contact me through email, since my hours have been cut back at work, and I cannot always know when I will be there.
I appreciate your patience in this matter.
Thank you, have a good day,
Again you are incorrect, we are not set up in NC. We are only based in NC.
----- Original Message -----
From:
To: jlong @ urgentcashadvance.com
Sent: Tuesday, August 26, 2008 1:18 PM
Subject: Re: UCA
Payday loans are illegal in the state of Pennsylvania. PA law states that their law then defers to the law of the state the payday loan is taken from, which is North Carolina. Looking at North Carolina law, it looks like Payday loans are illegal there also.
I have not filed complaints, just stated that I needed to communicate through mail or email, not call my home or work. I have no issue with this so far, we have been communicating through email, for which I thank you.
I do not dispute that I have a debt. I jsut can't keep paying the interest on it because of hour cutbacks, until I get a new job, get back to full time status, or find a part time job. Until then, I need to set up a payment plan, once I am financially sound, can pay off the loan.
Your company has always been easy to work with, I am hoping we can come to an agreeable arrangement, so this can be resolved over the next few months.
I have attached the PA law, and a note from the regulator of the Department of Banking.
Thank you for your time.
Colleen
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. An n. § 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
http://www.banking.state.pa.us/banking/site/default.asp
Emails to and from PA Banking Dept
Hello,
I have a question about payday loans in Pennsylvania. Does the small loan rate cap of $9.50 per $100 per year discount or 24% per year apply to these loans? I took out a few on the internet and am trying to figure out how much I legally need to pay. For instance on a $200 loan would I be legally responsible for paying back only $248?
Thanks!
Response:
Dear Ms.:
The 9.5 discount and the 24 % simple interest refer to calculations that can be used by companies that are operating in Pennsylvania and are licensed under Pennsylvania’s Consumer Discount Company Act. With a number of exceptions, a lender that is located inside of Pennsylvania and who does not have any special lending authority (i.e., a20special license or charter) who is making smaller loans not secured by real estate can only charge interest at a rate of 6% simple.
A lender that does not have a physical presence in Pennsylvania but who has lending authority from some other state can generally charge the interest rate and finance charges allowed by that other state.
The Department may or may not be reviewing this policy and I would not count on this e-mail as an interpretive opinion before starting any lending or business operations.
James Keiser | Administrator Non-Depository Institutions
17 North Second Street, 13th Floor | Hbg PA 17101
Phone: 717.783.8242 | Fax: 717.787.8773
jkeiser(at)state.pa.us | www.banking.state.pa.us
What does this mean?
There are no storefronts in PA. They are illegal.
Internet lenders can lend legally to PA residents as long as they are licensed in another state. They would need to follow the laws of the state in which they are licensed.
-----Original Message-----
From: Joe
To:
Sent: Tue, 26 Aug 2008 11:45 am
Subject: Re: UCA
I have received your e-mail and your letter is being reviewed by our legal department.
The contention that you have protections due to the fact we do not have an individual license for your state is not correct, as we have criminally prosecuted individuals in Pennsylvania for theft by deception.
The balance your provided is also incorrect, as your refinances do not count toward your principle balance. Your balance is $500.00.
UCA is considering how the company will proceed in this matter and if they will consider your payment request, considering the stance you are attempting and your threats to file complaints.
----- Original Message -----
To: jlong @ urgentcashadvance.com
Sent: Tuesday, August 26, 2008 11:31 AM
Subject: Re: UCA
Hello Mr. Long,
I email ed you yesterday, and am sending you a letter today. I would like to set up payment arrangements as soon as possible on my balance, to show that I would like to resolve this matter quickly. Please only contact me through email, since my hours have been cut back at work, and I cannot always know when I will be there.
I appreciate your patience in this matter.
Thank you, have a good day,
I would contact the Attorney Generals office in both North Carol
I would contact the Attorney Generals office in both North Carolina and PA, It seem like UCA is trying to get around the law. Payday lending is illegal in the state of NC. I don't understand how they are not set-up in NC, but based in NC. Sounds like they are playing games.
When you contact the Attorney General office in NC, you are directed to the desk of one gentleman. He is tough get a hold of but leave a message and he will call you back. He is quite informative and can offer lots of help. He may sound like a broken record, but I think it is because of all the phone he take on this situation alone. I spoke with him for a long time about internet payday lenders and what they can and cannot do. 919-716-6400