****Internet Lending in all 50 states****
** This is just preliminary *** There may be changes to it.
States that require internet based pdl's to be licensed by that state:
Alabama
Alaska
Arizona
California
Colorado
DC
Deleware
Florida
Hawaii
Idaho
Illinois
Indiana
Kansas
Kentucky
Lousiana
Maine
Michigan
Minnesota
Please see THIS LINK for changes in the MN law, updated on 7/7/2009 by Shazzers.
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Mexico
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania (See article on the last page)
South Carolina
South Dakota
Texas
Utah
Washington
Wisconsin - If the online company solicited you
Wyoming
In the above states the internet payday loan company must be licensed by that state and follow that state's laws.
Help with payday loan
I live in New York and would like to know if payday loans is illegal in my state, and if so can you help me get rid of them? I have 4.
Read my signature line and
Read my signature line and post your own thread. Locking this one,.
The following state allow an internet based payday loan company
The following state allow an internet based payday loan company to lend legally as long as it is licensed in any US State. They would need to follow the laws of the state they are licensed out of, not the state the consumer is in.
Arkansas
Rhode island
Tennessee
Wisconsin - If you found the company online by a search or other means
Edited and updated by Shazzers 7/7/2009
Edited again on 8/1/2009 by Shazzers
The following state are known to have payday loan companies acti
The following state are known to have payday loan companies acting as CSO's (Credit Service Organizations). This means they do not need to be licensed, and are generally 100% legal in what they charge.
Florida
Maryland
Texas
In the following states internet payday lenders are not legal, e
In the following states internet payday lenders are not legal, either because of restrictive laws, or because the state does not license companies not located in that state, but requires a state issued license to lend.
Connecticut
Georgia
Iowa
Maryland
Massachucetts
New Jersey
New York
North Carolina
Vermont
Virginia
West Virginia
where can i find this list
good morning still at work on these lenders how can i find this list so that I can send to two of my lenders that say they don't have to be licenced in my state fast bucks now and upfront money thank you
Goudah, how is it that Maryland shows up under CSO and Illegal?
Submitted by desperatelyseekingsanity on Mon, 07/14/2008 - 06:33
CSO's are different from pdl's, and are under totally different
CSO's are different from pdl's, and are under totally different laws. So pdl's can be illegal and CSO's legal in the same state.
Barbiwalk - I made this list myself. It is not found elsewhere
Barbiwalk - I made this list myself. It is not found elsewhere on the internet.
Goudah...help me...I am not sure, as in the case of Maryland, ho
Goudah...help me...I am not sure, as in the case of Maryland, how/when to determine if it is a CSO or PDL. Maryland says that a CSO doesn't have to be licensed, ergo, no record of them on the MD site. So a person could easily interpret that a lender is not licensed and therefore is not legal. They may confuse it as being a PDL lender.
Submitted by desperatelyseekingsanity on Mon, 07/14/2008 - 08:50
NEW YORK
I live in new york and I have "HAD" a pdl in 2005 and paid on it and know they want $5000.00 in 2008 when I only borrowed $200.00
HELP ME!
If a lender is required to have a license but is not on the stat
If a lender is required to have a license but is not on the state's roster, does that mean it's illegal? What do I need to do if it is? I've got 11 payday loans and they eating me alive!
Licenses can be hard to find. The company may be licensed under
Licenses can be hard to find. The company may be licensed under a corporate name, or some other way.
I can't speak to general legalities. Everything depends on the specifics.
DSS - CSO's must still be registered with the Sec of State. It's a different process then licensing, but most states still have searchable databases of the registrations. Also, the contract will also state that the business is a CSO.
Best you can do is to tell the company that you believe them to
Best you can do is to tell the company that you believe them to be unlicensed and force them to prove that they are (they need to be licensed at the time of transaction, btw).
If they give you a corporate name, or a d/b/a name, come back here and post it to assist other community members.
So If the company is not licensed what does that mean? I have lo
So If the company is not licensed what does that mean? I have loans with BIG, 247advance, Loanshop and FTR processing. Are these companies licensed in AZ? If not what can i do about the loans? I have already taken the first step and closed my bank account, but now I am freaked out abou that harrassing phone calls I am sure I will get.
There is a web site for the department of finacial institutes i
There is a web site for the department of finacial institutes in the state of arizona ( won't let me post it here ). There will be a tab on the side that says " list of licenses "
I have been looking for certian internet based companies on there as well.
The only problem I can find is if they have a different name than the one they give you.
You can call the Department 602) 255-4421 or (800) 544-0708 to get more information about the companies as well as what you can do to stop them if they are indeed illegal.
Goudah, You might want to re-verify Kentucky. I talked with som
Goudah, You might want to re-verify Kentucky. I talked with someone out of the Office of Finance here and they told me that a PDL company must have a state issued Kentucky license in order to loan in Kentucky. He then told me to get that license they must have one physical address that conducts PDLs as a business. He then stated that if they don't have a physical store then they don't get a license. In other words all internet PDL loans are illegal here unless they have a storefront to go along with it.
I know that - See http://www.debtconsolidationcare.com/payda
I know that - See
http://www.debtconsolidationcare.com/paydayloan/explain-pdls-laws.html
Kentucky Laws.
It doesn't change what I have on the first page, the company must be licensed. There is some crazy loophole that I haven't quite yet managed to put my finger on, but there are several companies that have licenses in every other state they can, yet they also lend in KY. Why would they bother to be legal in every other state, but not KY? So there is something missing.
Also, since technically they could have a storefront, it doesn't make all internet loans illegal.
I stand by my info.
At the very bottom of this post is a quote from the page that wa
At the very bottom of this post is a quote from the page that was linked. It looks like Cannr did some research on Kentucky laws. I am pretty sure Chris Thompson is the same fellow I spoke to about a year ago over the same issue. I am basing my response off of what he told me directly. A summary of what he said is to get a license in kentucky they have to have a physical store front in kentucky otherwise they are not getting a license. Essentially this makes all IPDLs illegal in Kentucky with the exception of the small number that have a storefront to go with it at least based on what he told me and what Cannr confirmed below. Technically you are correct that an IPDL could loan here but the catch is they need a store here to do it. The only thing I was suggesting was to move Kentucky to the list that says IPDLs are illegal and then put a qualifier that says they are legal if they have a store here. The reason I am suggesting this is because the percentage of IPDLs on the net that actually have a store in Kentucky is probably a very small number and the most notrious IPDL outfits are not licensed here.
Quote:
It doesn't change what I have on the first page, the company must be licensed. There is some crazy loophole that I haven't quite yet managed to put my finger on, but there are several companies that have licenses in every other state they can, yet they also lend in KY. Why would they bother to be legal in every other state, but not KY? So there is something missing. |
In my opinion the reason they get licenses in other states but not Kentucky is the same reason I posted above. Kentucky won't give them a license unless they open a store here. Frankly, Kentucky's PDL laws suck for the consumer and really are not much better than the deal you get from IPDLs. If I were an internet outfit I would partner with a storefront here to make it legal so I could cover my bases.
Quote:
Quote: Kentucky State Information Legal Status: Legal (Applies to check cashers only) Citation: Kentucky Rev. Stat. Ann. ???? 368.010 et seq. Loan Terms: Maximum Loan Amount: $500 Loan Term: 14-60 days Maximum Finance Rate and Fees: $15 per $100 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: Two ($500 aggregate loans outstanding to all licensees) Rollovers Permitted: None (cannot renew, rollover, or consolidate) Cooling-off Period: None Repayment Plan: Collection Limits: Collection Fees: One NSF fee (if disclosed) Criminal Action: Prohibited Where to Complain, Get Information: Regulator: Kentucky Office of Financial Institutions Address: 1025 Capital Center Drive, Suite 200 Frankfort KY 40601 Phone: (800) 223-2579 Fax: (502) 573-8787 Regulatory Contact: Gary Davis,, Branch Manager Emails to and from the banking dept: To Whom It May Concern: I have a question regarding internet payday lenders. I have visited the Department of Financial Institutions site and found some information. However, I am still a little confused. I understand that storefront payday lenders are legal in the state of Kentucky and have printed out the laws applying to them. However, there is nothing regarding internet payday lenders. I did a search on the site to see if some internet payday lenders were licensed in Kentucky. No results came up for any of them. If the case is that an internet payday lender is not licensed in the state of Kentucky, what then? Internet payday lenders are claiming they do not have to comply with Kentucky state law. They claim they comply with the law in which they are located. If they are not licensed in the state of Kentucky to fund loans, are they not in violation of some sort of law? Any help in this matter would be greatly appreciated. At the very least, it might clear up my confusion. Thank you so much for your attention in this. Response: Internet payday lending is illegal in Kentucky. Chris Thompson Compliance Branch Manager Reply: I have emailed before regarding internet payday lending and received the reply that internet payday lending is illegal in Kentucky. Thank you for that information. I now have another question. If an agency is attempting to collect on an internet loan - which was illegally funded - does the collection agency need to be licensed in the state of Kentucky? Is this even a legal debt to collect on? Thank you for any information you can give. Response: I am not sure who if anyone licenses collection agencies. This Office does not consider it a legal debt as the entity was not licensed to do business in Kentucky. Chris Thompson Compliance Branch Manager Reply: I have viewed our state pay day law and understand that a store front pay day loan company can collect one NSF fee if your check is returned by your financial institution. However, I have a question. How many times can a pay day loan company run the check through to your financial institution? I have a pay day loan company that I am working on setting up a repayment plan; however, they keep running the check through my financial institution every week. I was under the assumption that pay day loan companies may run the check through only once; however, I could be misunderstanding. Could you please clairfy for me how many times a store front pay day loan company can run your check through your financial institution? I would like to be sure this company is following the law. Thank you in advance for any answers/advice. Response: There is nothing in the check casher statute that prohibits the number of times a pay day loan company can run the check through; however, it is my understanding that banking law on allows a bank to do it only twice. Chris Thompson Compliance Branch Manager I've looked more into this, to see exactly why internet lending is "illegal" in KY Ms. : We have an Administrative Regulation in Kentucky 808 KAR 9:040 Limitation on electronic fund transfer from customers accounts that states: ???????In connection with a deferred deposit transaction, a license shall deposit or present for payment a customer????????s actual check to the customer????????s bank or other financial institution unless that check is redeemed or bought back by the customer.??????? This prevents Internet payday loans in Kentucky and any company that may be offering loans in Kentucky is doing so illegally. If you have any additional questions feel free to contact me. Sincerely, Rodney Gabbard What does this mean? A legal lender must hold a check from the customer. Storefronts can charge you 15% of the face value of the check. Rollovers are not allowed. A big Thank You! to Cannr for providing this information! |
I don't want to put a qualifier on it. I've done quite a bit of
I don't want to put a qualifier on it. I've done quite a bit of research into it, and there is still a piece missing, and until I find that piece, I'm keeping it how it is.
There is the possibility of a legal internet lender in KY, and if I put KY under illegal, then it's very misleading. Most people don't look at any qualifiers, so it's best to keep it how it is, as most intenet places aren't licensed anyways, so it doesn't really matter.
Internet lenders in themselves are not illegal. It's an issue of licensing.
Quote: States that require internet based pdl's to be licensed
Quote:
States that require internet based pdl's to be licensed by that state: |
Quote:
In the following states internet payday lenders are not legal, either because of restrictive laws, or because the state does not license companies not located in that state, but requires a state issued license to lend. |
Those are the two list headings above. Kentucky is currently on your first list heading. I just thought Kentucky fit the bill for the second also because of this the state does not license companies not located in that state, but requires a state issued license to lend. There is however a loophole in that if they have a licensed store front here then they could lend here over the net as well. I think it would be wise to note that next to Kentucky no matter which list you leave it on. The reason I think this is because almost all IPDLs can not get licensed here because they don't have a storefront here. You could just put in parentheses next to the state something like (physical storefront required in the state in order to have licensed issued) and leave it on the first list. That would bring it to peoples attention that any IPDL especially the most notorious are illegal in Kentucky because they don't have a store here. I do agree that you should not put it on a list that says all IPDLs are illegal because there is a loophole that would allow IPDLs to operate here if they build one store anywhere in the state or partner with any current PDL.
But if they are partnered with a storefront then they have a lic
But if they are partnered with a storefront then they have a license.
In those state's I have listed under "the state does not license
In those state's I have listed under "the state does not license companies not located in that state, but requires a state issued license to lend" requires a physical location, not just to be associated with a physical location. They will not license companies not located in that state. KY is different.
Quote: In those state's I have listed under "the state does not
Quote:
In those state's I have listed under "the state does not license companies not located in that state, but requires a state issued license to lend" requires a physical location, not just to be associated with a physical location. They will not license companies not located in that state. KY is different. |
I am just trying to elaborate on Kentucky IPDL loans based on my understanding. Please don't be upset Goudah. Your work is great and I can see you spent a lot of time researching the different states. It is also possible that my information is not completely accurate since I only had a couple of phone coversations with one state employee of the Office of Finance. I actually made those phone calls around the time Cannr first joined the site to find out for myself and for her if IPDLs were legal here. Since then she has done her own research as you posted.
It is deffintely an issue of licensing like you stated in a previous post. Kentucky has set it up to where it is almost impossible for an IPDL to be licensed here and do business here properly. They require a physical store front and they require a physical check to be signed and held by the storefront. They don't make it simple and just state IPDLs are illegal in Kentucky but they make it very difficult for them to obtain said license and operate legally.
My understanding per the conversations I had with the Office of the Finance is exactly what you just stated above for Kentucky. Kentucky requires a physical location to get a license. They are required to have a storefront they do business out of. They are also required to obtain a physical check to make a loan. They will not license companies if the company is not physically located in the state. The loophole I mentioned was they could potentially set up a physical shop anywhere in Kentucky and then loan to the entire state via the net but they would still be required to get the physical check. I personally think it would be a pain to run the business that way but it is possible I suppose. Without the check or the license the loan was made illegally.
On a side not the partnership thing is just something I threw out there to skirt the law. I don't know if it has occured but what I was suggesting is a company could potentially buy an existing storefront or make it appear like they are doing business out of that storefront and maybe get a license. That is an assumption on my part. I would hope that the Office of Finance would not license more than one PDL per business location but I don't know. Again that internet company would still be required to obtain the physical check via snail mail prior to making a loan and that's assuming the person signing the check does not have to be present when presenting the check to the store front.
In reality it is very unlikely an IPDL would go through any of this hassle including the IPDLs that try to follow the laws so they choose to loan illegally in Kentucky. It is much simpler for them. They calculate the loss as part of their business. The people borrowing money over the net that don't know about the PDL laws far outweigh those that do. With almost zero penalty other than a few refusing to pay the fees based on those laws it only makes sense for them to operate this way. They just lump those guys in with all the others that refuse to pay for other reasons. Until the AG steps in with some criminal prosecutions for loan sharking or making illegal loans, I really don't see much changing here.
Zip19 and Colorado
I live in Colorado and have a $1,400.00 loan with Zip19.com which is debited in two separate charges of 850.00 each on the 15th and 30th of each month from my checking account. Because of the debits, I always reloan the amount in order to meet my other financial obligations. I have had this nightmare going for over a year. In the state of Colorado if you take out four consective loans the pdl has to offer you a repayment plan to pay the loan off in six installment. Today, I contacted Zip19 and they told me this does not apply to them because they aren't a bank or financial institution. Does anyone have any advice for me? I despearately want to wake up from the horrible nightmare.
Thanks
Another questions
Do you go by the state that you are in or what state the PDL is in?
Check Alabama Licenses Here
In Alabama you can search the database of licenses here
http://www.bank.state.al.us/ADPSA_Licenses2.asp
PDL AZ
I am also in AZ. It is my understanding that some banks will reopen a bank account for ACH Transactions. Does anyone have a list of these banks? I need to close my account and I am not sure my bank will cooperate.
I am trying to find out if some payday loan companies are legal
I am trying to find out if some payday loan companies are legal and have a license. The companies are One Step Cash, Quick draw Cash, 4Money and More, Total Lending, and Qloot or (Vip Cash), and Eagle Finance.
Hi Brenda, What state do you live in? The law's/licenses dif
Hi Brenda,
What state do you live in? The law's/licenses differ from state to state
payday loans
I live in the state of FL and I have payloans from Nevis and united cash loans. Do you know if they are licensed in FL. I also have a internet ?loan? from thinkcash de of delware is that the same as payday loans?
Thinkcash is legal, they are backed by the First bank of Delawar
Thinkcash is legal, they are backed by the First bank of Delaware. I don't think that United Cash loans is legal and I will have to check on Nevis...
I did some research and learned that Internet PDL are illegal in
I did some research and learned that Internet PDL are illegal in Va. I printed off a list of liscensced PDL along with several banks, Bank of Rehoboth DE that is a major player in internet PDL. My bank is now in the process of assissting me in recouping any monies that were paid out above and beyond principle. We were able to put a no ACH hold on my account.
Banks do not like knowing they have been drug into interstate financial fraud and crime.
hey tennesse is not in there so is there such a payday loan comp
hey tennesse is not in there so is there such a payday loan company.
Internet payday loan companies
if a company is not licensed in the stat of North Carolina can you stop them from harrassing you even after you closed your account
Texas Loans
I have 5 loans that I have paid well more than I have borrowed-the companies are-Goodtime Cash/ Ameriloan/ MTE Financial/ GECC Loan/ Cashnet.USA, are these company's legal to lend in Texas? They were all done over the internet.
WA state law
Home > DFI Newsroom > Law Requiring Licensing of Internet Payday Lenders...
News Release
Wednesday, April 18, 2007
FOR IMMEDIATE RELEASE:
Contact
Deb Bortner, Director of Consumer Services
PH 360.902.8786 [email]dbortner@dfi.wa.gov[/email]
Law Requiring Licensing of Internet Payday Lenders Signed by Governor Gregoire
OLYMPIA ??? Scott Jarvis, Director of the Department of Financial Institutions (DFI), joined Governor Chris Gregoire today as she signed into law DFI???s requested amendments to payday lending law. Included among a number of new enforcement provisions is the requirement that online payday lenders be licensed before doing business in Washington.
Senator Jean Berkey (D-Everett) sponsored Senate Bill 5199 and was instrumental in keeping the new consumer protections alive and moving forward. The bill amends the current Check Casher and Sellers Act (RCW 31.45) and expands DFI???s payday lending enforcement authority. Going forward, anyone who offers a small loan to a person physically located in Washington must have a small loan endorsement. This includes loans made through the use of the internet, facsimile, telephone, kiosk, or other means. In the consumers??? favor, this means that if a payday lender violates the law, the consumer does not have to pay back the loan.
???We have an obligation to protect consumers from predatory lending practices,??? said Senator Jean Berkey, D-Everett. ???Fraud, deception, and misrepresentation will not be tolerated in Washington.???
The enhancement makes the enforcement tools for the check cashers and sellers law comparable to those for all other non-depository laws enforced by DFI. The expansion includes the enhanced ability to regulate against unlicensed internet lending, forgery, fabrication of documents, bait and switch, false advertising, written and oral misrepresentations, and unlicensed activities. In addition to any other penalties for a violation, any transaction is uncollectible and unenforceable.
???Electronic loans are a growing part of the payday lending business,??? said Director Jarvis. ???This bill will be a tremendous help in addressing violations of payday lending laws. We thank Senator Berkey for her generous support to champion legislation expanding consumer protection in Washington.???
The department takes a pro-active approach to educating consumers about payday lending. In March, following numerous campaigns in English, DFI launched a statewide Spanish PSA campaign in partnership with Uriel Iniguez of the Governor???s Commission on Hispanic Affairs. In addition, DFI places informational print advertising in community newspapers across the state.
The campaigns encourage consumers to visit the department???s website to see if a payday lender is licensed to do business in Washington.
More information about payday loans is available on DFI's website.
payday loan
i recently closed my account to stop a payday loan, and now they are trying to sue me...what do i do, i know i paid fees in the amount well over the amount borrowed, and i was under the impression that in florida you couldn't have a paymnet plan on payday loans, you had to pay it back in full....this loan was with loan shop??? any ideas??
payday loan
i recently closed my account to stop a payday loan, and now they are trying to sue me...what do i do, i know i paid fees in the amount well over the amount borrowed, and i was under the impression that in florida you couldn't have a paymnet plan on payday loans, you had to pay it back in full....this loan was with loan shop??? any ideas??
Can you please create a new thread in the payday loan section fo
Can you please create a new thread in the payday loan section for this question and we can help you more.
connecticut pdl laws
I live in ct. and have taken out pdl,s which have almost ruined my life.I strongly stress to everyone reading this, do anything but take out a pdl.too easy to obtain,too hard to pay back.pdl,s are prohibited in ct.correct?So what do I really have to pay back on them?