Kentucky PDL Help

Yes, I beleive it is true, although there may be a loophole somewhere that I haven't found.

You will find the Payday loan laws for Kentucky here (just select your state),
http://www.debtconsolidationcare.com/paydayloan/explain-pdls-laws.html
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


What does this mean?

Internet based companies are illegal. They cannot collect on the debt through any means. Kentucky does not license them, and does not allow companies not licensed in KY to lend legally.

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! :D

Be careful with Tremont. They have a habit of suing people in their state, and then getting default judgements.

If you do recieve a summons for them, please answer it. They can't sue you in their state, and you can get the case thrown out.

Also, I changed the title of your post to "Kentucky PDL Help" instead of your name . . . . Hope you don't mind, but that way people can tell what the post is about. :D

How do I get out from these? Do I write letters, call, or keep on trying to pay them back? They don't ever call me they will occasionally email me but that is it...Thank God! I am just confused on how to handle them... :?