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Payday loans are illegal in NY.

New York Payday Loan Laws
State Legal Status
Lending of payday loan is considered prohibited in the State of New York.


So wheather they are licensed or not they are still illegal to lend to your state. All you owe is the principal borrowed, nothing more.

Read the sticky on dealing with illegal lenders. The very first post will explain how to handle them step by step with links to sample letters. If you have any questions feel free to ask!

I read the sticky info. I have had prior payday loans, all paid in full. Am I able to request refunds for the vast amount of fees I paid with those loans as well as the current ones I have ?

You can certainly request it if you want to, although I would'nt hold my breath on it if I were you. Most people take a PIF and are happy if they get that much. I really think your luck with getting PIF and/or refunds depends on the company and your state. The smaller companies are more likely to do that and also some state AG's are very aggressive against the pdls...while others... not so much. Personally I have never recieved a refund or PIF but they no longer bother me so I am happy with that.

Am I able to request that overpayments be appiled to any balances I might have ?

Yes you can request it. Whether they will do it or not is another question.

so, basically, I should close my bank account. Send each PDL stating its illegal to charge my 400% and to copy the attorney generals office ? Inregard to any rough house tactic of collection, am I to beleive they cannot do anything to me legally and my best tactice would be to avoid any calls...thanks much

You got it!

What if the lender says they are legal from the state they are from. Since its through the internet they can say it is legal. Is that the case ? Another question, any company offshore automatically doesnt have a foot to stand on ???

That is correct. To verify if the lender is licnesed just contact your state's Dept of Financial Institutions. They can clarify if the lender is licensed to lend to you or not. Most states require internet lenders to be licensed within state to lend as well.

I hope I dont end up in a worse situation. I have fears of more fees, legal fees, late fees, etc.........

I need clarification on this, I live in NY

I have the following payday loans:

oneclickcash.com
discountadvances.com
mycashnow.com
staradvance.com
nationwide.com
kenwoodservices.com

I called the banking department, they told me since these places arent licensed in NY they had no advice for me. They also said if these places are licensed in whatever state they reside then they can do what they want. I do not want to start closing accounts or making my problem worse if it wont help. Can anyone here give me definitive answers as to what I should do.

Some of thes loans were probably already paid if you included the crazy interest payments I have made. Others still carry some balance. I have never missed a payment. However, I am getting bled dry. Its impacting every facet of life. Can someone please help ???????

hello, fellow NYer, close your account so you have your whole paycheck for yourself, send letters(i did mine via email) stating no phone contact(home or work), only emails. if you have overpaid...demand PIF's. I paid off each PDL one at a time by using a walmart reloadable card. when i had the available money is when they got their money. Do not be ashamed, do not be afraid, do not back down. what was taking me a few years to pay off the PDL's, it took me a few months to get rid of them just by following the advice from this site. good luck to you :)

Did you get harassed along the way ? They all accepted your terms ? Have you used any of the people I have listed ? Were you threatened ?

Quote:

Shazzers,

For example, Kenwood services I believe is licensed in Delaware. Does that mean anything ? I know oneclick is overseas somewhere, not sure of the others......

NY prohibits pdl's entirely.it doesn't matter where,how,or if they are licensed.NY doesn't allow pdl lending.every pdl illegaly lent you.

It only means they have a license in Delaware, that doesn't affect you because you are bound by the payday loan laws you are a resident of. And they know this, but they will attempt to make you believe otherwise. The ball is in your court, if they want at least the principal amount you borrowed then they will need to meet YOUR terms.

Previous loans discount advances.

loan # 1 $550......paid over $1300....Paid in Full
loan # 2 $750......paid over $2000....Paid in Full
loan # 3 $250......Paid over $325.....Paid in Full
loan # 4 $600..... so far paid $1090....accout open, $235 balance...

Do I ask for refunds ? Do I say i already paid off the open account ?? Sorry if I annoying anyone going over things, I just want to be very certain on things before I launch the process

All money you have paid ANY and ALL of these lenders should be deducted from the total principal amount you borrowed. I would definitely demand refunds, that doesn't mean you will get them, but it never hurts to try! :D

I removed the double posts.

Please stop posting the same thing over and over, thank you.

Ok, am going to begin sending out the letters to the PDL's, how does this sound ???

DiscountAvances.com

New York

After doing research regarding Internet payday loan laws in the State of New York , I have found that your Internet payday loans are actually illegal. I have also found the following laws to be true applying to payday loans in the State of New York in general:
New York Payday Loan Laws
Lending of payday loan is considered prohibited in the State of New York.

Interest rate cap on small loans
25% per annum


I hereby revoke any and all ACH authorizations with your company from debiting any of my personal accounts, per Federal law, Regulation E Section 205.10 Preauthorized transfers. I have closed my account with my bank to protect my interest in this matter, per instructions from The New York State Department of Finance. I also revoke any and all wage assignments I may or may not have signed with your company, I no longer authorize you, your company, or your affiliates to attach any part of my wages or contact my employer for your collection purposes. I have notified my employer about this matter so any attempts to do so on your part will be rejected.

I demand that any contact be made through US Postal mail or email only. I will need everything in writing to keep accurate records of all communication as per instruction from my Attorney General's Office. I prohibit you or your affiliates to contact me via telephone at my place of employment or my home telephone number. I also prohibit you from calling my references listed on my loan.

Due to the fact that Internet payday loans must be licensed in the state of New York to be a legal and binding contract, your company should NOT issue loans to New York state residents at all. In addition your insane interest rates charged are also illegal in New York. The legal amount that could have been charged to my loan is the principal amount, even IF your Internet pay day loan were legal anywhere in the U.S.. I have overpaid over $1,143 on my three previous loans and my current loan. I would like to have the current loan marked pain in full. To be fair, I???ll only ask for 50% of my overpayment or $571 to be refunded to me.


I must also inform you that I have filed a complaint with the New York State Attorney General's Office.

I expect a response from your company no later than 5 days from the above date regarding this matter. This response may only come via US Postal mail or email. No telephone contact is permitted.

very nice,but being illegal as they are.they more than likely won't honor the C&D.be prepared to file AG complaints.

One last question before getting the ball rolling. I have spent days reading tons of post here. I have read conflicting things. If I have overpayed on a previous paid in full loan, can i tell them to apply the over payment to my current open loan ? If thats the case I shouldnt owe any of them anything. Also, most have said pdl's are illegal in NY, however, some have said they are ok if they are licensed in other states. Same with the crazy interest rates, I have read conflicting things.

Can someone please answer the last questions I posted if possible. I am very appreciative of everyone time and info found here. It's been a God send. Thanks to everyone !!!!!

to address your queries

pdl's are prohibited in NY period.nothing more to be said.

as far as the other question.some will apply it.some won't.it doesn't change the illegality,but you can try.it can't hurt to ask.

hope that helped.

i agree, they are 100% not legal at all in New York. Most times when they are not legal they settle with you pretty quickly.. there are many stubborn companies who fight but a lot will just give you a PIF if you overpaid in the past or are very close to the principal amount owed. On this board, we advocate paying back what was borrowed but exactly how much is paid back is between you and the lender. i had a company give me a PIF while i was about $100 short of the principal and i did not exactly argue with them :)