pdls

Hello and welcome. I am moving this topic to the payday loan section, however, would you mind specifying which of these loans are Internet and which are store front? Thank you. Meanwhile, I will be posting your pdl laws shortly. :)

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Here is another thread that talks about Kentucky, it may help you out a bit.

http://www.debtconsolidationcare.com/pdlnews/kentucky-laws.html

Also don't be embarrased to say you have six, I myself when I first joined this site was dealing with about 8 or 9. Several people on this site have dealt with many at a time. Glad you found this site, we are hear to help.

Kentucky requires Internet based pdl's to be licensed by your state.

They are internet pdls which while reading a previous post are illegal in the state of Kentucky. Do i close my account at the bank what should I do next. Thank you

That's good news for you, I was mistaken, I got my information on the sticky above, but, apparently it was incorrect. :? Yes, get your account closed asap! Make sure it can NOT be forced back opened. After your account is closed, send letters via email to these companies and inform them you have discovered that ipdl's are illegal in your state, you can click on the link below for a sample of a letter you can send to them.
http://www.debtconsolidationcare.com/paydayloan/astrolending-impactcash.html

The info is not incorrect - Internet lenders do have to be licensed. There just are no licensed internet lenders in KY. But there is some strange loophole that i've been trying to figure out, as there are some legally operating companies that lend there without a license. So there is something else going on . . . .

KY does not have any sort of law making internet lending illegal.

In the link pl mentioned above it says that there is new legislation that make internet loans illegal, but that is not the case. The new legislation only does the following:

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Well that makes it crystal clear now doesn't it! NOT! :shock:

Goudah I see that new law if from 7/1/08, would that affect the case I got at all? my thread is here

https://www.debtconsolidationcare.com/paydayloan/cashexpress-kentucky.html

What caught my eye is this,
"Prohibits refinancing of a deferred deposit transaction and prohibits pay off of a deferred deposit transaction and immediate entry into a new transaction within 72 hours."

That's exactly what this PDL company had my girlfriend doing. She would go in, pay it completely off, then take the same amount back out the same day. It went on like that for a period of months. She paid off and re did her last PDL on 6/3/08 if that helps.

The provisions of this law wouldn't go into effect until 7/1/2008. Since she did her last pdl on 6/3/2008, the new provisions of the law would not apply to those transactions.

I looked into this a bit more . . . . Here is what I've found.

Internet lending is not specifically outlawed by KY law. But KY's law says the following:

[quote]808 KAR 9:040. Limitation on electronic fund transfers from customer accounts.

RELATES TO: KRS 286.9-010, 286.9-100

STATUTORY AUTHORITY: KRS 286.9-090

NECESSITY, FUNCTION, AND CONFORMITY:

KRS 286.9-090 authorizes the Office of Financial Institutions to promulgate administrative regulations for the enforcement of KRS 286.9-010 to 286.9-120. This administrative regulation establishes requirements for deferred deposit transactions.

Section 1. In connection with a deferred deposit transaction, a licensee shall deposit or present for payment a customer????????s actual check to the customer????????s bank or other financial institution unless that check is redeemed or bought back by the customer.



Section 2. If there is nonpayment by the customer????????s bank or other financial institution of the customer????????s actual check, a licensee may use electronic debits of customer accounts in its collection efforts. (30 Ky.R. 525; Am. 868; eff. 10-31-2003; TAm eff. 5-2-2007.)[/quote]

So, since internet lenders use EFT, they are not legal. They must hold a check for the loan to be legal.