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Governing Law

Date: Fri, 02/08/2008 - 09:53

Submitted by soniajleija
on Fri, 02/08/2008 - 09:53

Posts: 5 Credits: [Donate]

Total Replies: 7


Governing Law: By obtaining this loan and or renewal of this loan thereafter, both parties agree that this Note and your account shall be governed by all applicable federal laws and all laws of the jurisdiction in which the Lender is located, regardless of which state you may reside, and you consent to the exclusive exercise of regulatory and judicial authority by the jurisdiction in which the Lender is located over all matters related to this Note and your account, forsaking any other jurisdiction which either party may claim by virtue of residency.

I called:
Texas Office of Consumer Credit Commissioner
Address: 2601 N. Lamar Blvd. Austin TX 78705
Phone: (512) 936-7600
as listed in the Texas posts. I talked to the person who checks the licenses and she said that neither

Instantcash911.com
Instantloantoday.com
quieckest-cash-advance.com

was coming up under licensed in Texas.

She then transfered me over to the Consumer Assistance person, and he proceeded to tell me that there are no internet pay day sites licensed in the state of Texas. But, that when trying to file a complaint for any internet pay day loan company, you have to look at the "governing law" clause. The internet company goes by the law of the state that they are located in, not the state i am located in. When he says they are not licensed in Texas, all that means is that they cannot do business out of Texas, not that they can't do business with TEXANS.

I need help. Everything that i have read on here seemed like they had to follow the laws of the state i am in and now i am hearing different. Did i talk to the wrong person??


In most states the laws were written prior to the influx of internet lending so there are many areas that have yet to be determined by the courts and are left to the interpratotion of individuals. These people are often have conficting opinions. I found this true in my state where the laws regarding out of state lenders is quite clear. I do not know what Texas law really says but I am sure someone from there will be along to offer better info.


lrhall41

Submitted by Frogpatch on Fri, 02/08/2008 - 10:01

( Posts: 5381 | Credits: )


This discussion brings up a very interesting point--and shows why we need federal regulations in the worst way for PDL's. What we have now is a hodgepodge of conflicting laws and regulations. PDL's are illegal in some states and OK in others. Other states allow some business, others allow different aspects.
Ultimately, I really feel like it's going to come down to the Supreme Court eventually before it's all settled.


lrhall41

Submitted by kscornell on Sat, 02/09/2008 - 08:19

( Posts: 4407 | Credits: )


Funny that you brought up the Federal link to all this. I have been involved in local politics for many years and have made some great connections as a result. I have also contacted by State Senators regarding the IPDL's and have a request in to them to put in on their platform, especially the one who is hoping to have a "Federal" connection.


lrhall41

Submitted by llw1995 on Sat, 02/09/2008 - 11:38

( Posts: 1422 | Credits: )


KS.. . .I don't have the answers to that question either but I am doing my best to make everyone more aware of these predators. I see the problem as this. Let's face facts, this situation is embarassing, at least it is to me. I am not embarassed that I needed some additional funds as I had two unexpected car repairs totaling $900 and I also had an oil bill to pay, BUT how I managed is the problem. Thanks to this board I now feel differently. I have seen professionals as well as every day folks caught in this trap. I have alerted my bank, my AG's office, my State Senators, my friends, anyone that can avoid these people. I say barraging them with c and d letters, close your accounts, and barrage our powers that be with emails, complaints and letters. . . it's a good start. If all of us can do this I think we will have strength in numbers. I cannot do it alone, nor can anyone else on this board but together we can accomplish anything. Keep the faith AND the computers smoking!


lrhall41

Submitted by llw1995 on Sun, 02/10/2008 - 07:12

( Posts: 1422 | Credits: )