I filed an online complaint to the address someone posted on my original thread yesterday. Here is the response I received:
For the most part payday loans are not regulated in Pennsylvania at present. Entities that offer payday loans in Pennsylvania via the internet or by a local office, enter into partnership agreements to make and service loans on behalf of out-of-state banks/lenders and, thus, circumvent PennsylvaniaÃ¢â‚¬â„¢s lending laws. Over the past several years, some federal regulators had largely informally banned payday lending by their banks and the Federal Deposit Insurance Corporation (Ã¢â‚¬Å“FDICÃ¢â‚¬Â) made it clear that it believes that Ã¢â‚¬Å“providing high-cost, short-term credit on a recurring basis to customers with long-term credit needs is not responsible lending and increases banksÃ¢â‚¬â„¢ credit, legal, reputational and compliance risks.Ã¢â‚¬Â So most of the out-of-state banks/lenders who had agreements to make loans in Pennsylvania withdrew from the marketplace.
Please note that the Pennsylvania legislature passed legislation requiring companies that engage in non-mortgage consumer lending to be licensed by the Department effective February 1, 2009. To read more about this, click on the link below.
An alternative to payday lending is a program called Ã¢â‚¬Å“Better ChoiceÃ¢â‚¬Â offered through Pennsylvania credit unions. The Pennsylvania Department of Treasury supports the program and offers information on specific credit unions that participate. Please contact the Pennsylvania Department of Treasury at patreasury.org/BetterChoice.htm or by telephone at 717-787-2465. Obtaining loans online with internet lenders is a risk and the Department would not recommend conducting business with an online lender that may not be licensed. To confirm a lenderÃ¢â‚¬â„¢s license please contact the Department at 1-800-722-2657.
Not sure if they are telling me I do need to pay more on the $850 loan I have w paydayone on top of the $2k I've already paid or not? As for the credit union idea, if I end up needing to close my bank acct I may look into opening an account with one of them anyway. Not sure if bad credit would be an issue there?
Hopefully, this info will help any others who may be struggling in PA with a PDL nightmare!! I'm not really too sure what to make of it!
By signing up a debt counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the payoff amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.