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I NEED TO KNOW IF THESE COMPANIES ARE LEGAL

Date: Fri, 12/12/2008 - 09:37

Submitted by CQA5
on Fri, 12/12/2008 - 09:37

Posts: 9 Credits: [Donate]

Total Replies: 35


I have 4 internet payday loans and know I am not able to pay all of them off at one time. I offered to send them a money order because I know longer have a bank account and they all said something about they don't accept money orders because they tend to get lost in the mail. Cash Central called my job today being real rude and when I asked her for their address and she gave me P.O. Box 6430, North Logan, UT 84341 and then she said we don't accept money orders. So how am I suppose to pay them if they want take money orders. She also told me that I can send it money gram but I don't trust that payment option. Can someone please help I can pay them back but not all at one time.


BORROWED INTEREST PAID

EZ Cash Media 400 120 240

Impact Cash 300 150 105

E Payday Loan 400 120 120

Cash Central 300 90 0


Hi CQA5,

Here are the law's for Louisiana, I will see if any of the companies are licensed:
[quote]
Quote:
Louisiana State Information

Legal Status: Legal

Citation:
La. Stat. Ann. ???? 3578.1 et seq.

Loan Terms:
Maximum Loan Amount: $350
Loan Term: 60 days
Maximum Finance Rate and Fees: $5 documentation fee + the greater of 16.75% of check or $45 (After default: months 1-12: 36% per year; months 13 and beyond: 18% per year)
Finance Charge for 14-day $100 loan: $25
apr for 14-day $100 loan: 650%

Debt Limits:
Maximum Number of Outstanding Loans at One Time: Not Specified
Rollovers Permitted: None (cannot renew or rollover but licensee may accept partial payment of 25% of amount advanced plus fees and enter into new loan)
Cooling-off Period:
Repayment Plan:

Collection Limits:
Collection Fees: One NSF fee of actual bank charge (if disclosed) + the greater of $25 or 5% of check (if disclosed); Court Costs; Reasonable Attorney's Fees
Criminal Action: Prohibited

Where to Complain, Get Information:
Regulator: Louisiana Office of Financial Institutions
Address: P.O. Box 94095 Baton Rouge LA 70804
Phone: (225) 925-4660
Fax: (225) 925-4548
Regulatory Contact: John J. Braud,, Deputy Chief Examiner


Email from the DFI and Whitenan:

I emailed John Braud, Deputy Chief Examiner of LA Office of Financial Institutions and asked him, if internet payday lenders(not residing in Louisiana) who lend money to residents of Louisiana, have to be license in Louisiana or do they just have to have a license in any state.

Response:

You probably had difficulty finding information on this issue because activity commonly referred to as "payday lending" is subject to the Louisiana Deferred Presentment and Small Loan Act, LSA R.S. 9:3578.1 et seq. These loans are consumer loans subject to the Louisiana Consumer Credit Law, LSA-R.S 9:3510 et seq.

C. Except, as otherwise provided herein, that following agreements by a consumer are invalid with respect to consumer credit transaction, or modifications thereof, to which this chapter applies;
1. by which the consumer consents to the jurisdiciton of another state.
2. the fix venue

Therefore, the above provisions require that all consumer loans made to Louisiana residents should comply with Louisina laws, but lending licenses are issued to persons with business locations in LA.

John Braud
Cheif Examinor
Office of Financial Institution

Other emails from me to DFI:

Hello,

Do internet based payday loan companies need to be licensed by Louisiana to lend legally in Louisiana? Or can they be licensed in their home state as long as they don't have a physical location in Louisiana?
I have several payday loans and they are all licensed in other states.
They say they don't need a Louisiana license, and looking through the list of licensees I don't see any that are not located in Louisiana. Is that correct?

Thanks!

Response:

Ms. :

Lenders who do not have a physical locations in LA do not qualify for licensure. Those who have licenses are listed on our web site at ofi.louisiana.gov if you would like to do business with one of them.

John J. Braud
Deputy Chief Examiner
LA Office of Financial Institutions
(225) 925-7762
(225) 925-4524 FAX

What does this mean?

Internet companies must comply with LA law.

Internet based lenders with no physical location can't have a license from LA. If they are licensed in another state, and are following LA laws, they are legal.

Specific amounts may be charged.

No rollovers are allowed, however, they can allow you to pay 25% of your principle, and the fee, and then do a new loan.

Some of the emails courtesy of Whitenan. Thanks![/quote]


lrhall41

Submitted by dawnlango7 on Fri, 12/12/2008 - 11:39

( Posts: 1147 | Credits: )


I looked up the companies for you:

EZ Cash & Epayday loan are both illegal, they aren't licensed anywhere
Impact Cash & Cash Central are both licensed in Utah, but they are required to follow Louisiana's laws and based on their fee's and the fact that they are rolling over, it doesn't look like they are, therefore they would be illegal as well.

I will post some additional info for you in a second :D


lrhall41

Submitted by dawnlango7 on Fri, 12/12/2008 - 12:00

( Posts: 1147 | Credits: )


I'm not sure if someone has already posted this for you:
Quote:


What should you do?
Close your account asap, if you are unable to close your account, go into your bank and ask to speak with the Branch Manager, tell him/her you need a hard debit block placed on your account immediately! Explain that you are revoking ACH authorizations from unlicensed/illegal companies, and have learned these companies are notorious for ignoring revocation, therefore it is important to BLOCK any withdrawal attempts on your account to protect your interest. This is your privilege, do not accept no for an answer. The following link will provide you important information regarding closing accounts. CLICK HERE

What next?
AFTER your account is secure send each pdl (the unlicensed and illegal) an email similar to THIS (please scroll down to locate letter template). Tailor this letter to your needs, and try to write it with the same basic concept in your own words. You will need to research and locate email addresses/physical addresses if you don't already have them, I suggest that you type the name of the pdl (example: "oneclickcash address") in the search box in the upper right hand corner of this forum. You may also search for addresses HERE at the Better Business Bureau.

File complaints: Most of the time, you can file a complaint online with the following, I encourage you to follow through with doing so, you will need to search the Internet for your state Attorney General's website, however, here are links to file complaints for the FTC, Online complaints: Federal Trade Commission., and the BETTER BUSINESS BUREAU.

Keep in mind that you may not receive a response for days, or even weeks, or, you may receive harassing and threatening phone calls. I have found the best way to deal with this is not to respond or reply, simply hang up.

Side note: If you have paid an illegal/unlicensed payday lender above and beyond the principal amount you borrowed, it might be a good idea to demand a refund and a paid in full letter/receipt. You may or may not get one or both. It still doesn't hurt to include that tidbit in your letter.


lrhall41

Submitted by dawnlango7 on Fri, 12/12/2008 - 12:01

( Posts: 1147 | Credits: )


Here is a letter you can use as well:
Quote:


To Whom It May Concern:

After doing research on internet payday loan laws in the state of Connecticut, 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 Connecticut in general:

Legal Status: Prohibited

Citation:
Usury act applies or small loan act applies. Conn. Gen. Stat.???? 36a-563

Small Loan Rate Cap
30.03% apr or $17 per $100 up to $600; $11 per $100 up to $1,800; add-on interest.

I have contacted the Connecticut Office of Financial Institutions and the Connecticut State Attorney General's Office regarding your internet payday loans and was informed they are indeed illegal in Connecticut and was advised to pay what is due according to principle amount only of the loan.

To date, I have paid $525.00 DOLLARS on my $250.00 DOLLAR loan. The legal amount that could have been charged to my loan is the principal amount of $250.00 DOLLARS even if your internet pay day loan was legal in Connecticut. I have paid $525.00 DOLLARS on this loan by your debits of my bank account. Please mark this account as PAID IN FULL.

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 state 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. Once I inform you of this, you must stop the telephone contact immediately or you will be once again breaking the laws of the state of Connecticut.

You are also hereby notified that I am revoking any voluntary wage assignment I may or may not have signed. 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 am revoking your right to debit my checking account any longer. You, your company, or your affiliates are not authorized to debit my checking account at all. Please be aware that I have informed my financial institution of this situation and they will also be receiving a copy of this correspondence. Any further attempts at debiting my account will be rejected by my financial institution.

I must also inform you that I have filed complaints with the Better Business Bureau, the Federal Trade Commission, and my state Attorney General's Office.

I expect a response from your company no later than 5/2/2008, regarding this matter. This response may only come via US Postal mail or email. No telephone contact is permitted.

Thank you,


lrhall41

Submitted by dawnlango7 on Fri, 12/12/2008 - 12:02

( Posts: 1147 | Credits: )


couple of timps with cash central.. this is the old quik payday in utah.. they generally try and comply with licensure rules so you stand a pretty good chance of getting results with them. If they give you hard time.. it would not hurt to copy the Utah Department of Financial Institutions on any documetns you send to your State's agency.


lrhall41

Submitted by jj on Fri, 12/12/2008 - 13:11

( Posts: 1057 | Credits: )


What are the laws in the state of Colorado,is their a limit to the number of payday loans you can have and is their a way to repay them without going to court???


lrhall41

Submitted by on Mon, 04/20/2009 - 08:29

( Posts: | Credits: )


Hi. I live in Indiana and have two small loans out. One is with e-payday-loan.com I did default on it and have made two $20 payments thus far via PayPal, however I am almost sure they are illegal. The other is midwestloancenter.com out of South Dakota and they are demanding balance in full or they will garnish... please help!


lrhall41

Submitted by on Wed, 05/06/2009 - 10:08

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Well just stay calm, because they cannot garnish your wages. A garnishment has to be court ordered, and even then they will have to sue you and take you to court. Which I highly doubt they will do being they may not even be licensed to lend.


I take it both of these are online PDL companies. E-payday is Illegal. I am not sure about the other.

You can verify their legality with your states Dept of Financial Institutions. Just google them and give them a call.


lrhall41

Submitted by Cool_Abyss on Wed, 05/06/2009 - 10:13

( Posts: 2936 | Credits: )


Thanks for that info.. Yes they are both online PDL companies. I was sure about e-payday, but any info for Midwest Loan would be greatly appreciated, they are the ones threatening suit and garnishment.


lrhall41

Submitted by on Wed, 05/06/2009 - 11:29

( Posts: | Credits: )


Its Midwest Loan Center, LLC PO Box 2853 Sioux Falls, SD 57101 877-772-7312 support @ midwestloancenter.com
Also with the letter they sent me, it included an attorneys name which is Henry K Evans, P.C. at 123 S Main Ave Suite 206 Sioux Falls, SD 57104 605-367-9755 When I went to BBB they only way I could find them was with that last phone number... Thank you so much. Also what do I need to do to get e-payday-loan to stop harassing since its more than obvious they are illegal. I already copied and pasted that email that is on page 1 of this thread and sent that to them...


lrhall41

Submitted by on Wed, 05/06/2009 - 12:34

( Posts: | Credits: )


Just got a call from a collection agency from a online PDL I took out in 3/2008 from Cash Advance Network. I am looking to see if the collection agency is licensed to collect in my state, but could you help with Cash Advance Network aka MTE Financial and see if they are legal.


lrhall41

Submitted by on Wed, 05/06/2009 - 14:17

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I live in Indiana... thanks for the info.. any more is much appreciated!


lrhall41

Submitted by on Thu, 05/07/2009 - 05:02

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What are the laws in Mayland regarding internet payday loans? I took out a $300 loan with Cash Central and have paid them $233.28 in refinance fees alone. I contacted them to see if the next time the pull money out if there was some way i could put $100 towards the princpal...they said maryland does not allow that...where can i find the md laws


lrhall41

Submitted by on Wed, 05/13/2009 - 12:18

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I got a loan from this (Link Removed by Shazzers as solicitations are against TOS rules)

Link removed. Please read TERMS OF SERVICE for a more detailed description regarding advertising. Shazzers I am doing this becuase i found out that most people on this site are into one debt or another so i decided to provided you with financial company were i got a loan from with a very low interest rate. thank jane


lrhall41

Submitted by on Thu, 05/14/2009 - 09:07

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Loans through Midwest Loan Center are absolutely legal. The contract specifically states that if you sign it, you are signing it in accordance to South Dakota law, as if you were in the state of South Dakota. As far as garnishments, it's all legal. If it wasn't, a Judge would not sign off on it. A Summons and Complaint is served, the time lines are met in accordance to the law and if required by the state in which the customer resides, the judgment is transferred to that state.


lrhall41

Submitted by on Tue, 10/06/2009 - 19:46

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Quote:

Originally Posted by Anonymous
Loans through Midwest Loan Center are absolutely legal. The contract specifically states that if you sign it, you are signing it in accordance to South Dakota law, as if you were in the state of South Dakota.



I'm afraid that's not a right information. The payday lender needs to abide by the law where it's operating. If you're not licensed in a particular state, you are not legal.


lrhall41

Submitted by SC on Tue, 10/06/2009 - 23:45

( Posts: 3937 | Credits: )


im in ohio and have a loan with 1800899cash. i was told on this site they are not legal in the state of ohio. then a few days ago i was reading on here someone said they were legal?? now im confused. also, i have two loans with them. i reapplied for a little more money. one was for $300 and the other for $400. they took some of the $400 to pay the remaining balance of the $300. i was figuring i paid totally for both loans $913 so far. I still have remaining payments on the $400 loan. any advice???

thanks so much tara


lrhall41

Submitted by on Wed, 10/07/2009 - 03:33

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what are the ohio laws for pdls? I have a loan with this company that doesnt have a license in ohio, but the guy said it doesnt matter because the have a license in delaware. they can do business in ohio because they are an internet and faxing loan company. I was told before by several people that the company is illegal in ohio. Now im not sure what to do? help please


lrhall41

Submitted by on Wed, 10/07/2009 - 09:56

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