Licensed in Delaware so can lend to Maryland residents?
I have 2 last payday loans that I'm looking to settle. One is with Kenwood Services. The original loan was for $350 (with $105 finance fee), and I have paid back $630. I blocked this debit and sent my c+d letter several times requesting that my account be marked paid in full. I just received a call from a representative who said that Maryland law doesn't apply to the company because they are licensed in Delaware to lend. She offered to settle the account for one payment of $350. I told her I would think about it.
I know her reasoning isn't correct, but could someone help me explain why?
Thanks!
reply
because irregardless of if they are licensed in any state PDL'S are prohibited in MD.it matters none that they have a license.they are lending in a state that doesn't allow PDL'S.there next argument about being internet doesn't wash.report them to your AG asap.
How is this for a reply: April 22, 2009 I am replying to
How is this for a reply:
April 22, 2009
I am replying to the call I received from Emily this afternoon who offered to settle my loan for one payment of $350. This settlement is not acceptable to me.
As I note below, internet payday loans are illegal in Maryland. The fact that Kenwood Services may be licensed to do business in Delaware is not relevant to the analysis of whether the company is legal in Maryland. Among other things, Maryland law requires that to do business in Maryland with a Maryland resident, a business must be licensed by the Commission of Financial Regulation. As far as I can tell, Kenwood Services is not licensed in Maryland. In addition, the Consumer loan act applies to all loans made to Maryland residents. See Md. Code Ann. Com. Law II ?? 12-301 et seq. The law sets the small loan rate cap at 2.75% per month and 33% per year. As noted below, the annual rate for my loan from you is 1368.75%. This clearly exceeds the limit set by Maryland law. This loan is thus is illegal in Maryland.
Because I have paid $630 to date (on a principal borrowed of $350), I request that you mark my account Paid in Full and close my account.
Yup, your state law prevails, I would also tell them you simply
Yup, your state law prevails, I would also tell them you simply can NOT break your state law - even if they did! lol
Guaranteed even though the PDL's are illegal in MD, they'll tell
Guaranteed even though the PDL's are illegal in MD, they'll tell you they're legal. I told a couple of these outfits that my State AG and Dept. of Financial Regulation (in Maryland) said the PDls' were illegal, and the PDl's told me that the AG and Financial Reg. Dpt. didn't know what they were talking about!!