Legality of internet an internet pdl

And here is what I have concluded on all of these internet pdl's and internet lending in general. First off, lenders are required to be licensed in a state to give you a loan IF they are a US based company. The catch, though, is this. If a company is licensed in say New Mexico, and you live in California, and you hop onto the internet to get a loan, they are NOT required to be licensed in California. A company is required to be licensed in a state to lend money if they are actually availing themselves to that state. Courts have said that by going on the internet to get a loan, the company is not coming into your state to give you a loan, you are actually going into their state to get it (totally different if a company is say advertising specifically to your state). Now, some state laws have dealt with this issue and said otherwise, but for the most part, a large majority of states have not and this rule would apply. So if for instance you are dealing with Magnum Cash Advance, they are actually licensed in Delaware, and they must follow Delaware laws when giving you a loan, and not your state's laws. Somewhat bad news since Delaware laws are friendly to the pdl's. So to summarize this point, if a pdl is licensed in a state, then look at that state's laws to determine what you owe, and not yours.

Now for the good news. First, most of these guys are not licensed, and consequently are breaking the law when they lend. Their contracts are NOT enforceable so depending on your moral standards, I would be pretty hesitant to pay these people anything more than what you borrowed. Second, even if these people are licensed, most of them are breaking their own state laws (Magnum would be one of them). Contract = unenforceable.

In short, stick to your guns when dealing with collection people if the pdl you're working with is operating illegally. Always get their state license information and if they refuse to give you that, don't work with them until they do. Once armed with that information, then work with that state's laws to determine what you owe and pay only that amount back. If they keep harrassing you, file complaints. These people back off in a hurry if you do.

That's all for now. I'll be around quite a bit so feel free to drop questions on this topic.

Later