Checking on legality of Internet loans in Arizona
Date: Wed, 10/22/2008 - 14:04
I've done a lot of looking on here, and I know the basics for my state (Arizona): I can't be charged with criminal action, they must be licensed in my state or all I owe is the principle and contact the AG about them.
I found a list of licensed preferred presentment lenders for Arizona at http://www.azdfi.gov/Lists/DPC_List.HTML. However, because a lot of these shops have different lender names, I'm wanting to see if anyone knows if the following are licensed in AZ:
PaydayAvenue.com
CashNetUSA
United Cash Loans
WebPayDay
TogetherCash
I don't believe they are but I'm not 100% certain.
I also wanted to try and verify a couple of things:
PDA.com requires you to "sign" a wage assignment form. Since this was not signed in person, the document is void and I can revoke it, correct?
Additionally, if the company is not licensed to do business in Arizona, then I am only required to repay to them the principle balance minus the difference of any fees that I have already paid; is that also correct?
Lastly, if they are charging fees in excess of the amount allowed by Arizona, should I report them to the Attorney General's office?
As a follow-up question: So far I have not spoken to the company
As a follow-up question: So far I have not spoken to the company when they have called, mostly because I do know that there is no way I can pay them back anytime within the next 3 months. Should I go ahead and speak with them to let them know this? Or will it really make a difference in the long term?
"Lastly, if they are charging fees in excess of the amount allow
"Lastly, if they are charging fees in excess of the amount allowed by Arizona, should I report them to the Attorney General's office?"
That alone makes me very confident in saying they are illegal.
You can very easily call them and ask for their license number in the state of Arizona, which they MUST give you if they are indeed legal. I'm sure you'll get a line similar to " we are governed by the laws of blah blah blah ".
How much were the loans for and how much did you pay out?
I am from Arizona and I can tell you that Cashnet USA is legal,
I am from Arizona and I can tell you that Cashnet USA is legal, you will need to talk to them and make payment arrangements. Call them and ask for an EPP, you can make 3 payments and all fees will stop. I do not believe the others are legal but check your loan docs, they will give you the lenders exact name and then check the link you posted.
Good luck, I have been at this myself for several weeks already and I have 3 paid in full receipts from illegal pdl's.
Thanks for the vote of support. I found that Cashnet is legal
Thanks for the vote of support.
I found that Cashnet is legal so I will contact them to try and make payment arrangements.
I just got off the phone with what I think will be the worst of them all, PaydayAvenue - aka Northway Financial. Thanks to this site I took immediate control of the call. I asked for my account information, and then moved on to ask for the license number for Northway in the state of Arizona.
After spluttering and trying to counter asking why I was taking out loans if I knew they weren't licensed, and offers to transfer me to her supervisor's voice mail, I finally asked her for their mailing address. She stated it was on the isle of Malta and that it would likely be 2-3 weeks before they received any documents I sent. I have faxed a wage assignment revoke letter to them and will be sending a copy via certified mail tomorrow.
Out of curiousity - if I can press the issue and show that my fees paid the original priniciple on PDLs that aren't registered in Arizona, is that all I need to request a PIF letter?
Pretty much, you are only obligated to pay the principal. If yo
Pretty much, you are only obligated to pay the principal. If you have paid above that amount do not pay them anymore and ask for a PIF letter.
Arizona requires Internet based pdl's to be licensed by your st
Arizona requires Internet based pdl's to be licensed by your state.
United Cash Loans
3531 P Street NW
Miami, OK 74355
Telephone:800-230-9480
gphillips at unitedcashloans.com
United Cash Loans are part of MNE and are not licensed anywhere.
Web Payday is not licensed to lend anywhere in the U.S.
WebPayDay
320 West 200 South, Suite 350-B
Salt Lake City, UT 84101
Phone: 1-800-814-5451
Fax: 1-800-814-4960
UCL (800) 279-8511
3531 P Street, NW
PO Box 111
Miami, OK 74355
Quote:
Arizona State Information Legal Status: Legal Citation: Ariz. Rev. Stat. ???? 6-1251 et seq. Loan Terms: Maximum Loan Amount: $500 Loan Term: Min: 5 days Maximum Finance Rate and Fees: 15% of check 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: One Rollovers Permitted: Three (extensions) Cooling-off Period: Repayment Plan: Collection Limits: Collection Fees: $25 NSF fee + actual charges assessed by the financial institution Criminal Action: Prohibited Where to Complain, Get Information: Regulator: Arizona Department of Financial Institutions Address: Financial Enterprises Division, 2910 N. 44th Street, Suite 310 Phoenix AZ 85018 Phone: (800) 544-0708 Fax: (602) 381-1225 Regulatory Contact: Robert Charlton,, Assistant Superintendent of Banks |
Thanks for that! I think I'd run across it elsewhere on the site
Thanks for that! I think I'd run across it elsewhere on the site.
As much as it makes me feel like a heel, I'm going to have to let the three unlicensed ones (who are all charging rates higher than allowed in Arizona as well) by the wayside. I still owe them some beyond what they've received in fees, but there's just no way I can pay them - or even set up a payment plan - right now.
Anyway, thanks again for the addresses!
Clarification of fees
Collection Fees: $25 NSF fee + actual charges assessed by the financial institution
What does the "+ actual charges assessed by the financial institution" mean? Is it fees charged by my bank for bouncing ACH debits or the PDL fees?
I've got to say I am so glad I found this site. The stress I was facing was making me physically sick. I am working right now to pay back the legit places first and then will focus on the others. This site has given me the weapons I need. Thanks
Just an update: I've sent PIF and C&D letters to both UnitedC
Just an update:
I've sent PIF and C&D letters to both UnitedCashLoans, PaydayAve, and Webpayday, as none of them are licensed in AZ and all of them have received in fees (at minimum) the principle amount. I also included a Wage Assignment revoke letter to PaydayAve (aka Sonic "DEVIL" Payday) and notified my payroll department since I know they like to try and sneak those by. These documents were faxed to them and then sent via certified mail.
No responses yet to the faxes. However, I haven't gotten calls from any of them today.