Newbie here...in need of help *****

Hi meason,

Here are the pdl laws for KY:
[quote]Quote:
Kentucky State Information

Legal Status: Legal (Applies to check cashers only)

Citation:
Kentucky Rev. Stat. Ann. ???? 368.010 et seq.

Loan Terms:
Maximum Loan Amount: $500
Loan Term: 14-60 days
Maximum Finance Rate and Fees: $15 per $100
Finance Charge for 14-day $100 loan: $17.65
apr for 14-day $100 loan: 459%

Debt Limits:
Maximum Number of Outstanding Loans at One Time: Two ($500 aggregate loans outstanding to all licensees)
Rollovers Permitted: None (cannot renew, rollover, or consolidate)
Cooling-off Period: None
Repayment Plan:

Collection Limits:
Collection Fees: One NSF fee (if disclosed)
Criminal Action: Prohibited

Where to Complain, Get Information:
Regulator: Kentucky Office of Financial Institutions
Address: 1025 Capital Center Drive, Suite 200 Frankfort KY 40601
Phone: (800) 223-2579
Fax: (502) 573-8787
Regulatory Contact: Gary Davis,, Branch Manager


Emails to and from the banking dept:

To Whom It May Concern:

I have a question regarding internet payday lenders. I have visited the Department of Financial Institutions site and found some information. However, I am still a little confused.

I understand that storefront payday lenders are legal in the state of Kentucky and have printed out the laws applying to them. However, there is nothing regarding internet payday lenders.

I did a search on the site to see if some internet payday lenders were licensed in Kentucky. No results came up for any of them. If the case is that an internet payday lender is not licensed in the state of Kentucky, what then?

Internet payday lenders are claiming they do not have to comply with Kentucky state law. They claim they comply with the law in which they are located.

If they are not licensed in the state of Kentucky to fund loans, are they not in violation of some sort of law?

Any help in this matter would be greatly appreciated. At the very least, it might clear up my confusion.

Thank you so much for your attention in this.

Response:

Internet payday lending is illegal in Kentucky.

Chris Thompson
Compliance Branch Manager

Reply:

I have emailed before regarding internet payday lending and received the reply that internet payday lending is illegal in Kentucky. Thank you for that information.

I now have another question. If an agency is attempting to collect on an internet loan - which was illegally funded - does the collection agency need to be licensed in the state of Kentucky? Is this even a legal debt to collect on?

Thank you for any information you can give.

Response:

I am not sure who if anyone licenses collection agencies. This Office does not consider it a legal debt as the entity was not licensed to do business in Kentucky.

Chris Thompson
Compliance Branch Manager

Reply:

I have viewed our state pay day law and understand that a store front pay day loan company can collect one NSF fee if your check is returned by your financial institution.

However, I have a question. How many times can a pay day loan company run the check through to your financial institution?

I have a pay day loan company that I am working on setting up a repayment plan; however, they keep running the check through my financial institution every week.

I was under the assumption that pay day loan companies may run the check through only once; however, I could be misunderstanding.

Could you please clairfy for me how many times a store front pay day loan company can run your check through your financial institution? I would like to be sure this company is following the law.

Thank you in advance for any answers/advice.

Response:

There is nothing in the check casher statute that prohibits the number of times a pay day loan company can run the check through; however, it is my understanding that banking law on allows a bank to do it only twice.

Chris Thompson
Compliance Branch Manager

I've looked more into this, to see exactly why internet lending is "illegal" in KY

Ms. :

We have an Administrative Regulation in Kentucky 808 KAR 9:040 Limitation on electronic fund transfer from customers accounts that states: ???????In connection with a deferred deposit transaction, a license shall deposit or present for payment a customer????????s actual check to the customer????????s bank or other financial institution unless that check is redeemed or bought back by the customer.???????

This prevents Internet payday loans in Kentucky and any company that may be offering loans in Kentucky is doing so illegally. If you have any additional questions feel free to contact me.

Sincerely,

Rodney Gabbard

What does this mean?

A legal lender must hold a check from the customer.

Storefronts can charge you 15% of the face value of the check.

Rollovers are not allowed. [/quote]

Judging from the above info the internet lenders would be illegal, you should pay back the amount that was borrowed and thats it. Here is a breakdown of what you owe/is owed to you:
Usfast cash - owe them $300
vc funding - owe you $180
paycheck today - owe them $30
instant cash usa - owen them $30
cash advance network - owe them $30
money & more - owe them $255
americash - owe them $100
The first step would be to close your account as you have already suggested. The second would be to send the illegal pdl's a letter, you can search and find it on the website, it is called a cease & desist. This will revoke your authorization to debit your account and any wage assignments you may have signed. It also states that any future contact must be through email or mail. I will do search and see if I can find the addresses or contact info for you. I would also file complaints with the BBB, FTC and the KY attorney general.

Here is some contact info for your pdl's:
Quote:

Thank you so much for your help. I am so glad I found this site. I am going this afternoon to close my acct.

Question about my VcFund loan...I looked back and I've paid $430 in fees so far and last week they look the fee plus $30. The grand total I've paid to the is $460. Once I send a c&d letter I should be done with this correct. Because I've paid back the amount I borrowed.

I closed my acct and sent c&d letters out, twice! I am now being hasselled by some company hired for CAN and Paydaytoday. They claim I owe them a total of $750. The company says I need to get statements from the pdl companies and send it to him to make arrangements. Should I also send a copy of KY laws?

let me give my.02 youowe each of them 30.00.so i would just send your state laws plus a DV letter.it is up to them to prove you owe this,not up to you to prove you don't.

what is a DV letter?

nevermind found it....i should fax it to the company calling me?

Yes...fax and mail it. What is the name of the company? Is it ARM of FL?

i believe so...