Little Loan Shoppe installment loans - Need information about them.

Do you know if its an installment loan or a PDL? If its an installment loan, they dont need a state specific license. Check your paperwork to see which type of loan it is.

Little Loan Shoppe installment loans:
See, that's the problem. When I got the loan, they emailed me my "paperwork" and it was just a copy of the email. They apologized and said they'd email it back, and it was the same thing. They were supposed to "mail" it to me.

And, I didn't apply for an installment loan--they gave you the option of "installment loan" or "cash advance"--I picked advance.

When you pay them, do you have set installment amounts and a paymen schedule that pays down on the interest and principal?

I don't have my paperwork, so I can't find anything specific. According to the fees portion of their website, a $250 loan costs $750 to pay back.

What are you paying? In other words, how much money do they debit from your account and how much did you borrow?

They are supposed to take $75 every payday for a $250 loan. Of course, today, I got an email that says they're going to take it every two weeks--I get paid twice a month. I've only made one payment.

For how long?

10 payments, I suppose. I called them and they can't seem to locate my application--they're not sure how I could get that (even though I was supposed to get a mailed copy) but they have a copy of my "Contract"

That is what you need....your contract. Have the, give it to you. Then 10 payments of $75 would make sense, according to their fee schedule.

TOTAL OF
PAYMENTS
The cost of your credit as a yearly rate:

The amount you will have paid after
making payments as scheduled.
Loan Amount Total Paid
$500.00 $1500.00
$450.00 $1350.00
$400.00 $1200.00
$350.00 $1050.00
$300.00 $900.00
$250.00 $750.00
$200.00 $600.00
$150.00 $450.00
$100.00 $300.00

The Amount Paid is after 10
installments.

I just got a faxed copy of my "contract"--it is not what I agreed upon.

Does it have your esignature on it?

It has my name at the bottom--This is complete BS. I filed something against them with the BBB. I absolutely did not apply for an installment loan. I checked their website--you can apply for a payday loan, which is what I did. I assume they just tell you it's a payday loan and then the terms are for an installment loan. They couldn't "find" my application to tell me if I had applied for an installment loan.

It does seem fishy...I have been looking at their website and I cannot find what bank is backing the installment loan.

Ask them what bank is backing your so called "installment loan"

There doesn't have to be a bank backing it - If they are doing it on their own they would need to be licensed by the state.

Which state would they need to be licensed by?

What state are you in again?

KY

So they can bascailly take a payday loan format and call it an installment loan?

If they are doing installement loans that are not backed by a bank they would need to be licensed in your state.

If they are backed by a bank, the bank is the real lender and federal law allows them to lend off their home state's license.

It's not a payday loan format - It's an installment loan by definition.

I understand the definition and looking at the application, it looks like a pdl app. just my observation.

so what rates would they have to follow? whatever is allowed for that particular state? right now they are charging 541%.

Yeah, if they aren't backed by a bank then state laws would apply . . . .

I see....so the usury rates for KY would apply. Thanks for that info!

Yep!

Just got them to fax my contract. It says the lander is "LLS America, LLC" which is Little Loan Shoppe America, LLC--the name they are licensed under in UT.

Yeah, I looked through the consumer credit licenses for KY and didn't find anything that looked like them either.

So, Goudah, what does that mean in regards to the loan?

any updates on this thanks

It looks like Gouda was saying that if Little Loan Shoppe was funding the "loans" then they need to be licensed in Ky. If they have a bank backing them then they can be licensed anywhere, doesnt look like they have a bank so they need a Ky license. You should contact the Ky attorney general and see what they have to say.

I just got an email response from the KY department of financial institutions. According to them:

"Although this entity is not tied to a bank, it is still illegal to loan money to taxpayers in Kentucky over a certain interest rate. Being that this entity is not licensed in the state of Kentucky the borrower would ethically be liable to the principal amount."

Cdollar,first if that is your dog, it is the cutest thing in the world.
second that is exactly what we advocate here . Just paying back the principle if the loan is not legal.

Yes, that is my dog--Johnny Drama--he's a Brussels Griffon and completely full of himself. He thinks he's my other kid.

That is exactly what I plan on doing--I already have the letter to them in an envelope, revoking ACH on my closed account and wage assignment. I just felt better sending it after I heard back from the KYDFI.

yeah, you got it all under control. You really are making great strides. Congrats to you.

Nice progress Cdollar!

Yup, today is a good day :cool:

so whatever happened here ? Have you just paid back what you owed? Or ... ?

if you look at the home page of Little Loan Shoppe it says " Unsecured Short-Term Installment Loans".

No, I haven't paid back the princiapl amount yet. i sent them a letter requesting an address to mail the remainder due and I haven't gotten anything back from them.
And yes, it does say "installment loans" on their home page--but there is another page that comes up when you request a payday loan or cash advance. Regardless of this, it doesn't matter what type of loan you apply for, you get the same terms for each one and the state of KY stated they were illegal.

Okay..I have one that I took out as a PDL with them and they sent me the option of paying back a $300 loan with 10 installments of $90...I have paid them a $90 fee so far...and have now closed my account (or will on Mon.)? Where will I find if they are licensed in TN?

egypt, won't matter. You're in TN. If they're licensed somewhere, you have to abide by the law of the state they are licensed in. I believe this information is on your other thread you have going. :wink:

Seems like I read it there too, but I do not or did not recall if this applied to installments or just PDL's...sorry I do not mean to be redundant? I have to read over my thread again and again...I am still a bit slow on the draw after going through all of this. I am in panic mode.

It's okay! I was once in "panic mode", too! Not a problem! Yours are pdls, so you're okay. You don't have any installment loans. Which would have to be licensed anyway! It'll be okay, egypt. Ask any questions you need to!

As I was reading this thread ( as it was stated..'Installment Loan) it sounded, almost like a Cash Call type loan. With PDL's, seems like you have to search 'far and wide' for answers, reguarding these PDL's. Boy..I'm glad people, on this forum, are helping me out!

Update--I got a response in regards to my BBB complaint. Here's what the company said:


Number 1, I did not give them any dates whatsoever to debit my account other than my paydates--and I get paid twice a month! So why would I tell them every two weeks? AND, I already paid $150 (not $75)of a $250 loan, so the pif would $100!

Anyones feedback on this, I would appreciate.

c, respond back stating that this is not acceptable. Tell them exactly what you posted. That you did not agree to the paydates they specified, that the amount is incorrect, etc. State the facts. And, if I recall, didn't you say they are illegal to you??? If so, include that in your response also. Whenever responding to the BBB after a pdl spews lies, be firm. You tell them exactly what is happening. And if they are illegal, you point that out also.

How horrible!! This PDL cannot even give you the correct info on your 'contract'? How disguisting. I would be writing a letter to them...saying "wrong", "wrong","wrong." Ya know?

Ask how much if you pay in full now. If your prin when down then you know it is an installment loan. Should be cheaper to pay early

I used this company myself and had to close my account. I spoke with Lynn and she was very nice. I asked her if she would waive some of my fees and I was able to get paid off with very litte extra cost.