Changes to Kentucky PDL laws. Re Non licensed lenders HB 444

While KY DFI states your not required to pay back principal morally speaking you should. (Just the principal), but that's up to each indvidual to do what they want.

That is up to you. ethics and moralsdiffer greatly from person to person but the law applys to all.

If someones morals were that high, shouldnt they pay principal plus interest because that is what they agreed to pay initially?

What if they had been paying interest? Suddenly they could no longer afford to pay the loan for various reasons, or something in the back of their head said that something is fishy and searched and found out the payday loan was illegal? So morrally speaking, they were already paying the interest and just now owe principal.

That's what essentially happens about 90-95% of the time on this form, people already paying interest in roll-over fees every two weeks. Then suddenly they can't afford to pay the loan, so they come here, search and find that the company they had been dealing with is illegal. I'd also have to say about the majority of them have been paying on those loans for MONTHS so they have paid the interest 10-times over, plus the princpal.

We are just saying, that if you take out a loan-at least pay back princpal, if it wasn't paid back in interest/roll-over fees.

I agree....I am not trying to rip these companies off. I've paid them all alot of $ I just want my PIF letters. Anyone that I owe money that what I've paid doesn't cover prinicipal I've asked for info on how to pay it back.

Altho my philosophy in life is "Do the right thing"...the reason why laws are written the way they are (I'm talking about illegal loans/activity)..."transactions shall be void and the person shall not collect any principal, fee, interest, charges or recompense whatsoever" is so that the offender (illegal lender) is penalized and will not pursue illegal activity. The laws require that they act within the laws (get licensed, etc).

In situations such as this, if they are not acting within the laws, then the lenders should suffer the penalties. (If a person took out the loan without ever intending on paying the loan back, that is fraud and is a totally different topic.) Most loans are taken out in good faith only to have them discover later that it was an illegal transaction...therefore...transaction is null and void (the lender should and probably does know what the requirements are)...again...slap them where it hurts until they act within the law...

...thanks for listening...I am now descending from my soapbox...

Good point desperate. I am just passing on what the new law states.

If one feels they should pay back principle, they can. However the commonwealth of kentucky does not require them to.

Here Here!! I agree Insider...

Quote:

Yes PDL owner you are correct....I'm new to the forum - like 2 weeks and I know all HOF and senior members totally advise paying principal back.....That is the moral, right thing to do so if you are new reading this - Pay back your principal!!! But do it with a pre-paid debit card or Money order!

PDLowner, nowhere in my post did I advocate NOT paying back any loans...in fact, my opening statement was positive in statement of "do the right thing." I merely was factually stating why and how the law is written. My agreement with Insider was precisely that...I agreed with "If one feels they should pay back principle, they can. However the commonwealth of kentucky does not require them to."

I take offense that you feel that MY OPINION was not a very responsible statement...I disagree. I would suggest that you reread the post and make apologies.

Hey sanity...

It is not what you stated directly, but what you agreed with. My point was that although you agree with insight and the laws state that the debt is uncollectable, that is not what is directed on this forum. All of the mods and frequent poster state that you have a moral obligation to return the principal and your comment could easily be construed as "take the money and run". The reason that I made the comment was due to the fact that you are a frequent poster and have helped many others, so based on your number of posts you will be "looked up to".

Your opinion is your opinion, no problem! But when it differs from the morals that are preached on here, it needs to be pointed out as the exception and not the rule.

Let's get back on topic...

PDL...

I do preach to do the right thing and pay back the principal...however, the point of this thread was about the laws and how they are written, more specifically that if a lender is illegal and not following the laws, then they should be penalized. Now if people miscontrue this thread, then, with all due respect, that is their doing. Laws are misconstrued all the time...that's why people hire lawyers...to fight or defend these laws.

And I was agreeing with Insider's quote...if one feels one should pay back the prinicpal, they should. However Kentucky law doesn't require it....I was NOT agreeing that someone NOT pay it back.

What I take offense with is the fact that you have pointed me out specifically here...and YOU have misconstrued this thread. I have always supported knowing BOTH sides when a discussion ensues and have (until now) not called anybody on the carpet. You have crossed the line here PDL...you have offended me.

You have obviously have not spoken to kfstaff, nohiogal, shazzers and a few others.

I am not sure that you will see my point and that is understandable. You made the post agreeing with not paying back illegal lenders and I just pointed out that many people do not readl ALL of the thread and will only see that you agree with not paying. This can and will be interpreted as not paying back legal lenders also, which will make the situation worse.

It was not meant to be an attack, just a reminder that you are a highly regarded member...

PDL...as I previously stated, it is YOU who has miscontrued my post...even after my explanation to you. It seems to me that you are hell bent in making an issue out of this...

And again...you are demeaning and condensending in your post..."You have obviously have not spoken to kfstaff, nohiogal, shazzers and a few others." WHY would I need to speak with them...I am in agreement that we must do the right thing. I am on this post to get assistance and give assistance.

My post above was a factual statement of why and how the law was written my agreement with Insider was that we advocate paying back money we borrowed...EVEN if the law says we don't have to.

"It was not meant to be an attack, just a reminder that you are a highly regarded member... " well...right now, as a highly regarded member I feel that I have been attacked and have to defend myself...so much for feeling appreciated. :?

Back on topic....

Although the state says that the unlicensed PDL debt is uncollectable, it is the moral opinion of the people that provide advice on this forum that you should pay the amount that you borrowed back.

I've said that all along...

I fully agree with desperately.. In my opinion, the point of the law being worded as it was is to punish those unlicensed lenders who attempt to operate outside the statutes established for Kentucky. Since they operate outside of the legal boundries of the commonwealth, the only way the state can punish them is to make all debts uncollectable.

Whether a person has a moral obligation to payback the principle is entirely up to that individual. Morals generally go out the window whenever money is involved..

Are there any internet PDL's that are licesnsed in Ky? I have 2 loans out and these companies are crazy. Is it legal for these companies to actually turn the loans over to a collection agency or is that illegal too? I'm very confused and a bit scared of what's going on with all this... Please help...

Brook, won't you start a new topic in the payday loan help section with the following information:
-Names of each pdl company.
-Whether they are store front or Internet.
-How much you borrowed.
-How much you paid so far.
-The state in which you reside.

Thank you.

What date did these changes take affect?

Anyone?

Anyone answer this?

Does anyone have a date on this? Thinking a little more leverage to use when trying to work out something with these lenders.

Jan 1, 2010