Can someone help me get rid of internet payday loans?

Hello-

You have come to the right place to get the guidance and help that you need. One of the first things you will need to do in order to get control of your paycheck again is to close your current bank account or in some cases, place a hard debit block on it. Be sure to read the "sticky" at the top of the forum regarding closing your bank account first before you take any of those actions.

Someone with much more experience than I will be along to help you shortly, and will post your state's PDL lending laws.

In the meantime, it is important that you list the amounts you have borrowed from each company, as well as the total amount you have currently paid on it. This is very important to help them help you :) Good luck. You are among friends here ^_^

I have about 5 outstanding payday loans and find myself taking out new ones to pay the old ones. I need help! What should I do?

Hi, Misty ^_^

Firstly, to help us help you, please tell us what state you reside in, whether or not your loans are storefront or internet, which companies they are from, and how much you originally borrowed from each and how much you have paid back so far. From there we can help you with a plan of action ^_^

Dreamy, here are your states laws

Kentucky State Information

Legal Status: Legal (Applies to check cashers only)

Citation:
Kentucky Rev. Stat. Ann. ???? 286.9.010 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
Regulator Website

Licensee Database

Complaint Instructions

Complaint Form Link

Online Resources

Inorder for us to help you. please answer the questions that Amaranth asked you.

I also need some assistance. I live in Minnesota and have 3 payday loans out. I am falling behind on the rest of my bills because all of my checks go to pay day loan fees! Please help!! I have one through PaydayOne for $500. I have one through Cashnetusa for $300. I have one through CashCentral for $200. I am seriously considering closing my bank account or making it deposit only...any help would be appreciated.

Hi Kelsey,

Here are the law's for Minnesota, I will check on the companies and see if they are licensed. Right off the bat I think that PaydayOne and CashNet USA are both legal, it may be that all 3 are licensed.

Are any of them storefront?

[quote]
Minnesota allows 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.


Quote:
Minnesota State Information

Legal Status: Legal

Citation:
Minn. Stat. ???? 47.60 et seq.

Loan Terms:
Maximum Loan Amount: $350
Loan Term: Max: 30 days
Maximum Finance Rate and Fees: $5.50: $0-$50; 10%+$5: $51-$100; 7% (min. $10) + $5: $101-$250; 6% (min. $17.50) + $5: $251-$350 (After default: 2.75% per month)
Finance Charge for 14-day $100 loan: $15
apr for 14-day $100 loan: 390%

Debt Limits:
Maximum Number of Outstanding Loans at One Time: Not Specified
Rollovers Permitted: None (cannot repay with proceeds of another loan by same lender)
Cooling-off Period:
Repayment Plan:

Collection Limits:
Collection Fees: $30 NSF fee
Criminal Action:

Where to Complain, Get Information:
Regulator: Minnesota Department of Commerce
Address: Division of Financial Examinations, 85 7th Place East, Suite 500 St. Paul MN 55101
Phone: (651) 296-2135
Fax: (651) 296-8591
Regulatory Contact: Kevin Murphy,, Deputy Commissioner
[/quote]

Hi Kelsey,

All of your companies are legal, so you will need to work out some type of arrangement with them. I am going to post some helpful info and them the law's for the different states:
Quote:

Here are the law's for each state:
[quote]
PaydayOne is licensed in Delaware, you would need to go by their law???s:
Quote:
Delaware State Information

Legal Status: Permitted under small loan act or licensing law - Legal

Citation:
Del. Code Ann. tit. 52227 et seq.; Del. Code. Ann. tit. 52744

Loan Terms:
Maximum Loan Amount: $500
Loan Term: Max: 60 days
Maximum Finance Rate and Fees: Not Specified
Finance Charge for 14-day $100 loan: No Limit
apr for 14-day $100 loan: No Limit

Debt Limits:
Maximum Number of Outstanding Loans at One Time: Not Specified ($1000 aggregate loans outstanding to all licensees)
Rollovers Permitted: Four (rollovers)
Cooling-off Period:
Repayment Plan:
Collection Limits:
Collection Fees:
Criminal Action:

Where to Complain, Get Information:
Regulator: Delaware Office of the State Bank Commissioner
Address: 555 E. Loockerman Street Suite 210 Dover DE 19901
Phone: (302) 739-4235
Fax: (302) 739-3609
Regulatory Contact: , Administrator, Non-Depository Institutions and Compliance

Emails to and from the banking dept:

From:
Sent: Wednesday, September 19, 2007 10:04 AM
To: Coffman Dawn M (BCO)
Subject: Payday Loan Question

Hello,

Do internet based companies need to be licensed by DE to lend legally in DE? Or can they be licensed in their home state? I have several payday loans and they are all licensed in other states. They say they don't need a DE license. Is that correct?

Thanks!

Response:

From: Hoffecker Carole (BCO)
Sent: Friday, September 21, 2007 4:55 AM
To:
Subject: RE: Payday Loan Question

Dear,

In response to your e-mail, Delaware has a safe harbor of 5 loans in a twelve month period and which is viewed as not conducting business. Therefore, a license would not be required. However, should a lender do more than the five loans a license would be required even if they are an internet based.

I trust this is responsive to your concerns. However, if you have any questions, please feel free to contact me.

Sincerely,

Carole


What does this mean?

If the company does more then 5 loans a year to DE residents, they must be licensed by DE, even if they are internet based.

They can charge whatever they want.

There can only be 4 rollovers.
Cash Net USA is licensed in Nevada:
Quote:
Legal Status: Legal

Citation:
Nev. Rev. Stat. 604A.010 et seq.

Loan Terms:
Maximum Loan Amount: 25% of expected gross monthly income
Loan Term: Max: 60 days
Maximum Finance Rate and Fees: Not Specified (After default: interest rate must be equal to or less than the prime rate at the largest bank in the State of Nevada plus 10 %)
Finance Charge for 14-day $100 loan: No Limit
apr for 14-day $100 loan: No Limit
Debt Limits:
Maximum Number of Outstanding Loans at One Time: Not Specified
Rollovers Permitted: Not Specified (Lenders cannot extend payment period beyond 60 days after expiration of initial loan period)
Cooling-off Period:
Repayment Plan: Yes
Collection Limits:
Collection Fees: $25 dishonored check fee (max. two fees for insufficient funds; max. one fee for closed account) Court Costs; Reasonable Attorney's Fees; Service of process costs
Criminal Action: Prohibited (Unless customer acted with criminal intent)

Where to Complain, Get Information:
Regulator: Nevada Financial Institutions Division
Address: 2785 E. Desert Inn Rd., Suite 180 Las Vegas NV 89121
Phone: (702) 486-4120
Fax: (702) 486-4563
Regulatory Contact: , Supervisory Examiner

CashCentral is licensed in Utah:

Quote:
Utah State Information

Legal Status: Legal (Applies to check cashers only)

Citation:
Utah Code Ann. 7-23-01 et seq.

Loan Terms:
Maximum Loan Amount: No Limit
Loan Term: May not exceed 12 weeks
Maximum Finance Rate and Fees: No usury limit
Finance Charge for 14-day $100 loan: No Limit
apr for 14-day $100 loan: No Limit
Debt Limits:
Maximum Number of Outstanding Loans at One Time: No limit
Rollovers Permitted: Not Specified (cannot extend or renew loan more than 12 weeks from original loan date)
Cooling-off Period: None
Repayment Plan:
Collection Limits:
Collection Fees: Not Specified
Criminal Action: Not Specified

Where to Complain, Get Information:
Regulator: Utah Department of Financial Institutions
Address: 324 South State Street, Suite 201 Salt Lake City UT 84111
Phone: (801) 538-8830
Fax: (801) 538-8894
http://www.dfi.utah.gov/


[/quote]

Minnesota has a new law that says they have to be lic. in minnesota to lend in mn just an fyi

I contacte the MN AG and found out the following:


For Immediate Release: September 5, 2008
Contact: Bill Walsh (651) 296-7531

Out of state Payday Lenders now subject to Department of Commerce licensing and regulation

(St. Paul, MN) The Minnesota Department of Commerce announced today it is now requiring all payday lenders making small denomination, short-term loans to Minnesota residents via the internet be licensed pursuant to Minnesota law. Licensing is required regardless of whether the lender has a physical presence in Minnesota. Payday lenders will also be required to comply with the limits on loan amounts, fees and charges, and other requirements of state law.

After further review of Minnesota law and statute the Department is now of the opinion that a payday loan made via the internet is made in the state where the borrower resides and the payday lender making such a loan is subject to Minnesota laws and licensure. As a result, all payday lenders making loans to Minnesota residents via the internet must meet the new licensing requirements effective December 1, 2008.

Financial institutions, including state or federally chartered banks or savings associations, industrial loan and thrift companies licensed under Chapter 53, regulated lenders licensed under Chapter 56, or any operating subsidiary of a financial institution, are not subject to the licensing requirements of Section 47.60, the Consumer Small Loan statute.

As an alternative, a payday lender may apply for an industrial loan and thrift company license under Chapter 53 of the Minnesota Statutes; however, the Chapter 53 license requires a physical presence in Minnesota.



The Division of Financial Examination of the Minnesota Department of Commerce is responsible for the regulation of state chartered banks and credit unions, mortgage companies, premium finance companies, accelerated mortgage payment companies, motor vehicle finance companies, consumer small loan companies and regulated loan companies, currency exchanges, money transmitters, automatic teller machines, and electronic funds transfer. The Division is also responsible for the licensing and financial regulation of insurance companies operating in Minnesota.


Thank god Minnesota wised up.

kklblue




Joined: 10 Sep 2008
Posts: 27
Debtcc Points: 488




Posted: Mon Sep 22, 2008 7:15 am Subject:

--------------------------------------------------------------------------------

I also found this:

56.19 VIOLATION.
Subdivision 1. Criminal penalty. Any person or the several members, officers, directors,
agents, and employees thereof, who violates or participates in the violation of any of the
provisions of sections 56.01 and 56.18 is guilty of a gross misdemeanor.
Subd. 2.[Repealed, 1983 c 252 s 16]
Subd. 2a. Penalty for intentional violations. Any lender intentionally violating this chapter,
when the violation does not also constitute a violation of any other provision of state or federal
law for which there is a remedy, shall be liable to the consumer in an amount not to exceed
$100 for each violation.
Subd. 3. Unlicensed lenders. If a person has violated this chapter by not obtaining a
license when required to make loans subject to this chapter, the loan is void and the debtor is not
obligated to pay any amounts owing. The debtor may recover from such persons all amounts
paid. No action may be brought under this subdivision more than one year after the date of the
last scheduled payment on the loan.
Subd. 4. Remedies exclusive. The remedies set forth in this section and section 48.196 are
exclusive. A violation of this chapter does not impair rights on a debt.
History: (7774-59) 1939 c 12 s 19; 1981 c 258 s 18; 1Sp1981 c 4 art 4 s 13; 1983 c 252
s 13; 1Sp1985 c 1 s 22,

Payday lenders have until 12/1/08 to get licensed.

kklblue




Joined: 10 Sep 2008
Posts: 27
Debtcc Points: 488

kkblue,
can you or someone else please let me know how the new Minnesota Payday Loan rules/laws may affect someone such as myself who has outstanding payday loans that I obtained over the internet and are now in default on my repayments to them? I'm trying to work out settlement plans with them... but I don't want to over commit myself or live outside of my budget again. (That's what got me in this mess in the first place). I've already had stops placed with my bank for the ACH withdrawls (guess I really need to change my account though because those stops will come off in the next few weeks - they're only good for 6 months at a time with my bank).

Thanks for your help!