Is Cash Central Legal in Louisiana?

Cash Central doesn't have any physical presence in the state of Louisiana. This makes them illegal in the state of Louisiana.

I know why you are confused after reading a few threads of this site. A few posters had posted that Cash Central is a member of the CFSA but actually, they are not listed.

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Thanks for the feedback!

Shaz, it's definitely the Cash Central from the internet. They even have a "license" on their page listed under my state, but it's only saying they're licensed by Utah to operate as a lender.

Here's the link to the letter...cashcentral.com/about/license.aspx

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I spoke to someone at the LA. OFI a few minutes ago and the woman told me that online payday lenders do NOT need a license to lend in Louisiana. How is that so?

I thought I saw information saying otherwise.

I just wanted to be sure before I take action against Cash Central.

Anyone able to aid me in this? Is it true that online lenders do NOT need a license to lend to LA citizens? **See my post directly above about the LA OFI**

Thanks!

Shoot an email to the email address I gave you above. Sometimes it depends on "who" you speak with, if you call again and speak to someone else you may get a totally different answer.

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Thanks Shaz.

I've just sent the email to Mr. Braud, so we'll see what he says.

I will be curious to know myself, please keep us posted!

Well, the Louisiana Deputy Chief Examiner replied to my email and it wasn't what I expecting.


[QUOTE]Ms. Ashley [I DELETED MY LAST NAME],
Out-of-state lenders are not required to have consumer loan licenses in
Louisiana. However, when an action is brought in this state to enforce
rights arising from consumer credit transactions wherever made, the
creditor shall reduce the charges so that they do not exceed those
provided in the Louisiana Consumer Credit Law. In other words, if the
Internet payday loan company wants to file a law suit against you for
default on the note, they have to reduce the fees to $45.
If you would like to discuss this, you may contact me directly at the
number below.
John J. Braud
Compliance Examiner
Deputy Chief
LA Office of Financial Institutions
(225) 925-7762
(225) 925-4524 FAX[/QUOTE]


Does that mean, I got lucky with getting off the hook with the other lenders, who I thought were operating illegally?

And more importantly...WHAT NOW? How should I proceed with Cash Central?

Just curious, is the interest rate that Cash Central is charging what La. state allows? If not, then that is how I would begin, I would contact them with the La. payday loan laws and let them know that you has a conversation with the Compliance Examiner Deputy Chief and was told they can not charge you any more interest than your state law allows, I would also include those laws. It sounds like you are only required to pay them according to your state laws below:
http://www.paydayloaninfo.org/state-information/26

Shaz,
They're charging a $75 finance charge as opposed to the $45.

The interest rate for a 14 day loan with Cash Central is 651.49% and Louisiana only allows a maximum of 650% for the same term.

However , I do see that Louisiana doesn't permit rollover/renewals/refinancing and I've already done so 4 times with Cash Central.

So, if my math is correct, the loan should've only lasted 14 days (no permitted rollovers per LA laws) costing me $345 TOTAL.

I've already paid $300 (refinanced four times with Cash Central), so I only owe $45 more, right?

I'm not so good at math anymore.

I have never been good at Math. lol What you have posted sounds right to me, so, obviously they have broken the law according to the payday loan laws allowance. Arm yourself with that ammunition, my best guess whoever reads your email won't be very educated anyway because Internet lenders hire people who don't know how to communicate without a script. lol

I'll begin with that on Monday morning. Before I contact them, I want to place an ACH Block on my account. The next and what should be final "payment" of $45, if my math is right, isn't due until November 19.

I'm emailing my letter certified as well as sending it to them via email. They're website states they atually honor ACH revocation if it's received in writing.

I'll be sure to keep this thread updated for folks.

I just wanted to update the thread, with a reply from Cash Central

[QUOTE]

Thank you for your email. I do show your fax and email have both been
received. All ACH debits have been stopped on your account per your
request.

As Cash Central does not maintain a physical presence, employees or
representatives in your state, we are not required to obtain a license
to conduct online payday lending in your state. However, we are
regulated by the state of Delaware and your loan agreement is therefore
governed by the laws of Delaware. You can verify that Cash Central is
regulated in Delaware by visiting our website www.cashcentral.com,
clicking on 'State Licenses' in the About Us section, and then clicking
on your respective state.

I have sent your fax and email to my supervisor. If you have any other
questions, contact me at [EMAIL="ashleyr@cashcentral.com"]ashleyr@cashcentral.com[/EMAIL].

Best Regards,

Ashley R.[/QUOTE]I was shocked they actually honored my ACH request.

I acknowledged that they were allowed to lend to LA. citizens legally, however, they must follow LA laws and their fee of $75 exceeds the $45 limit and also how LA DOES NOT ALLOW ROLLOVERS or REFINANCING and I've refinanced 4 times ($300 total).

Yep, make sure you let them know you heard it from the horses mouth.

I just thought I'd update this thread with good news. We had to email back and forth quite a few times, because he insisted that Cash Central didn't have a physical presence in LA and therefore didn't require a license...WHICH IS TRUE.

What I disputed was that while internet lenders didn't need licenses to legally lend in LA, they did have to follow state law. I found the information from this site and can't find the community member whom listed some VERY USEFUL information.

I stood my ground and argued that while they were legal, I was charged excessive rates and refinanced 4 times when, LA doesn't allow rollovers. The maximum interest rate for LA is $45 and I paid $75 four times. Since the total amount for my loan SHOULD HAVE been $345 and I had already paid $300, I was responsible for the remaining $45, which will be sent shortly.
I got a reply from one of the managers, whom was VERY NICE and HELPFUL.

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