Interest Rates charged

Date: Wed, 07/20/2011 - 21:52

Submitted by anonymous
on Wed, 07/20/2011 - 21:52

Posts: 202330 Credits: [Donate]

Total Replies: 2

My daughter, who lives in California, got $300. from a Pay Day Loan place, and they charged $30. interest for EACH $100. Therefore, the interest was $90. for two weeks on a $300. loan. She had to make arrangements to pay it back a little each pay period because when it came time to pay it, she just didn't have it. Therefore, they are charging her $90. interest every two weeks plus $50. which they will apply to her $300. loan. As the loan is paid down, the interest will continue to be charged every two weeks at a rate of $30. per $100. If I have figured right, that is a total of $450. interest only plus the $300. when it is all paid off. That is highway robbery! IS THIS LEGAL? WHO CAN SHE CONTACT WITHIN THE LEGAL SYSTEM FOR HELP WITH THESE PEOPLE. Can she bring a case against them? She also has several other companies who have done the same or similar thing, and she is never going to get out from under the debt that way.
Thanks,
A Mom :oops:

This is how payday loans operate...they are suppose to be short

This is how payday loans operate...they are suppose to be short term, loans, to tide you over to your next payday.

However....it appears that they are charging her over what California law permits...plus rollovers are not permitted. Who did she borrow from? Sounds like this is an illegal loan thus she needs to close her bank account ASAP!!!

California State Information

Legal Status: Legal

Citation:
Cal. Fin. Code ???????? 23000 to 23106

Loan Terms:
Maximum Loan Amount: $300
Loan Term: Max: 31 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: None (cannot charge fee for extension)
Cooling-off Period: None
Repayment Plan: Voluntary (no fees may be charged in conjunction with payment plan)

Collection Limits:
Collection Fees: $15 NSF fee
Criminal Action: Prohibited

Where to Complain, Get Information:
Regulator: California Department of Corporations
Address: Financial Services Division, 1515 K Street, Suite 200 Sacramento CA 95814
Phone: (866) 275-2677

lrhall41

Submitted by SOAPLADY on Wed, 07/20/2011 - 22:21

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I completely agree with Soaplady. You can get information from t

I completely agree with Soaplady. You can get information from the California Department of Corporations in order to know whether or not pdl companies are licensed to operate in California. Your daughter will be liable to pay both the principal and interest, if the lender is licensed in her state. Otherwise she is required to pay only the principal amount.

lrhall41

Submitted by sally.nachelle on Thu, 07/21/2011 - 00:42

( Posts: 275 | Credits: )