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All internet payday loans illegal in Kentucky

Submitted by on Mon, 01/04/2010 - 13:11
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Starting Jan 1, 2010 all internet payday loans are considered illegal. The Kentucky department of financial institutions does not issue licenses to internet lenders so there is no such thing as a legal online payday loan.

As an added bonus, all loans made prior to 2010 are considered invalid and are not collectable. This would include any fees AND the principle of the loan.

I look at this as more of a class action settlement since kentucky realizes that going after the lenders individually is nearly impossible.

Happy new year.


Good to hear the State of Kentucky has taken this action! Yes, as many of the PDL's are actually located in other countries, there's little or nothing Kentucky or any other State/Federal government agency could do as far as legal action against them.


Submitted by on Tue, 01/05/2010 - 04:50

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I can also say this is a result of complaints to the ky department of financial institutions. A very high percentage of the complaints (95+%) were about online loans.

Ky saw no way to regulate them or limit a residents access to them so they said they are not honoring the debt a resident incurs.


Submitted by on Wed, 01/06/2010 - 09:41

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I have tried to explain the laws of KY to my internet payday lenders but I am getting the same responce from them all " You agreed to the loan so you have to abide by our state laws not KY". Is there any truth to this? Also I read I didn't have read that I didn't have to pay them another dime, Is this true?


Submitted by ronnie cox on Mon, 02/01/2010 - 11:43

ronnie cox

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Quote:

Originally Posted by ronnie cox
I have tried to explain the laws of KY to my internet payday lenders but I am getting the same responce from them all " You agreed to the loan so you have to abide by our state laws not KY". Is there any truth to this? Also I read I didn't have read that I didn't have to pay them another dime, Is this true?

Just tell them your state law prevails.


Submitted by Shazzers on Tue, 02/02/2010 - 04:40

Shazzers

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That is Correct, if they are not licensed (no online lenders are licensed in ky) then they cannot collect the first dollar from you. And this includes principle.

Kentucky has had the long time opinion that online services operating in kentucky must abide by Kentucky laws.

That doesn't mean the lenders will not try to get their money. Close your account, collect all pieces of communication, send them a letter return reciept requested, and then be prepared to fight when they try to report you to a credit bureau.


Submitted by on Tue, 05/04/2010 - 12:06

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