logo

Debtconsolidationcare.com - the USA consumer forum

Please let me know if I'm understanding Maryland law for PDL

Date: Wed, 10/08/2008 - 06:29

Submitted by kawgirl23
on Wed, 10/08/2008 - 06:29

Posts: 35 Credits: [Donate]

Total Replies: 5


So this is the Maryland law:

Maryland State Information

Legal Status: Prohibited

Citation:
Consumer loan act applies. Md. Code Ann. Com. Law II § 12-301 et seq.

Small Loan Rate Cap
2.75% per month; 33% per year.

Where to Complain, Get Information:
Regulator: Maryland Commissioner of Financial Regulation
Address: 500 North Calvert Street Suite 402 Baltimore MD 21202
Phone: (410) 230-6100
Fax: (410) 333-3866
Regulatory Contact: Michael Jackson Director, Regulatory Policy


So is it my understanding that if I have a $400 loan the most interest they can charge me is 33% for the year of the loan which is $132 which totals $532. So to pay the loan off in full it would cost $532? :?


Hi there, I just spoke with the Maryland Commissioner of Financial Regulations on the telephone, she told me that cash advance lenders (Internet Payday Lenders) are not entitled to ANY interest rate for small Loans. She suggested that you pay only the principal amount to the payday lenders since they're prohibited. As far as the CSO's, they are are generally 100% legal in what they charge. She also suggested that you send a letter of complaint with a detailed description about these Internet lenders to:
Sara Bloom Raskon
500 North Calvert Street Suite 402
Baltimore MD 21202


lrhall41

Submitted by Shazzers on Wed, 10/08/2008 - 07:05

( Posts: 17344 | Credits: )


Great! Thanks for your help (again)!

Also, since Cashnet USA is a legal CSO, do I send them the same letter that I sent the others only in there somewhere asking for a EPP and an address to send the payments to? I think they say that I owe them $494 so that would be 4 payments of $123.50 right? And they have to accept this correct?


lrhall41

Submitted by kawgirl23 on Wed, 10/08/2008 - 08:36

( Posts: 35 | Credits: )


Well, since they're a CSO, the payday lender laws do not apply to them. If I remember correctly though, you had mentioned they ARE a member of the CFSA? Hmmmm, I'm really quite baffled about this one, but it won't hurt to try. I mean, they're going to have to accept payments one way or another if they want their money, either that, or they'll sue you, which in that case they would probably only get payments through the court system also. I would just write them and tell them due to some illegal activity on your account you were forced to close it, and the only option you have to pay them back is through USPS via money orders. That's what I would do. Also, ask them what type of payment plan they can offer you.


lrhall41

Submitted by Shazzers on Wed, 10/08/2008 - 08:44

( Posts: 17344 | Credits: )