I have PDL and money lol! What do I pay??

Hi Shannon ~ What state are you in? Also, it's going to be important to note how much you've already paid on these loans. It's possible you've already paid them off but since they have very high interest rates...the amounts never go down. It's also important to know if these loans were made over the internet or if they are storefront companies.

Let us know and I'm sure someone will be able to advise you on where to go from here!

PS - I hope that $1200 wasn't from another pdl ;)

No, $1,200 was a personal gift. Thank GOD! lol

I live in PA

one click paid 50 principal 90 interest
a2bloan paid 74 interest 0 principal
cashnet paid 140.00 interest
loanpoint paid 100 principal 270.00 interest
cashcen 100 principal 200 interest

I am current on all the loans right now, payments start again on Friday.

I was looking at paying smaller loans & then "deal" with cashnet & loanpoint.

Hi Shannon, I will post the PA laws for you in a second. PA has a loophole that relates to PDLs.

PDL's are prohibited in PA, however they are legal if they are licensed in another state, they would have to follow the laws for that state:

Quote:
Pennsylvania State Information

Legal Status: Prohibited

Citation:
Check cashers are specifically prohibited from making payday loans under Check Cashing Licensing Act of 1998, ???? 505(a). Otherwise, consumer discount company act applies. 7 Pa. Cons. Stat. Ann. ???? 6201 et seq.

Small Loan Rate Cap
$9.50 per $100 per year discount or 24% per year

Where to Complain, Get Information:
Regulator: Pennsylvania Department of Banking
Address: Market Square Plaza, 17 N. Second Street Harrisburg, PA 17101
Phone: (717) 214-8343
Fax: (717) 787-8773
Regulatory Contact: Jim Keiser, Administrator of Non-Depository Institutions
http://www.banking.state.pa.us/banking/site/default.asp



Emails to and from PA Banking Dept

Hello,

I have a question about payday loans in Pennsylvania. Does the small loan rate cap of $9.50 per $100 per year discount or 24% per year apply to these loans? I took out a few on the internet and am trying to figure out how much I legally need to pay. For instance on a $200 loan would I be legally responsible for paying back only $248?

Thanks!

Response:

Dear Ms.:

The 9.5 discount and the 24 % simple interest refer to calculations that can be used by companies that are operating in Pennsylvania and are licensed under Pennsylvania????????s Consumer Discount Company Act. With a number of exceptions, a lender that is located inside of Pennsylvania and who does not have any special lending authority (i.e., a special license or charter) who is making smaller loans not secured by real estate can only charge interest at a rate of 6% simple.

A lender that does not have a physical presence in Pennsylvania but who has lending authority from some other state can generally charge the interest rate and finance charges allowed by that other state.

The Department may or may not be reviewing this policy and I would not count on this e-mail as an interpretive opinion before starting any lending or business operations.

James Keiser | Administrator Non-Depository Institutions

17 North Second Street, 13th Floor | Hbg PA 17101
Phone: 717.783.8242 | Fax: 717.787.8773
jkeiser(at)state.pa.us | www.banking.state.pa.us

What does this mean?

There are no storefronts in PA. They are illegal.

Internet lenders can lend legally to PA residents as long as they are licensed in another state. They would need to follow the laws of the state in which they are licensed.
I will look at your list & tell you who is licensed and who isn't.

Hi Shannon,

Here is some info for you, I will post the laws for NV & UT in regards to the 2 licensed loans:
OneClick Cash - not licensed
Cashnet - licensed in NV
Loanpoint - licensed in UT

I am still working on a2b. Is Cashcen the name of the company or do they go by something else?

I would need to know the total's you have paid so far to the companies.

UTAH laws, this will apply to LoanPoint:

Utah

Utah payday loan laws are similar to Nevada. Like Nevada, Utah has no caps on the amount of interest a lender can charge. So by law a lender is free to charge whatever annual percentage rate (apr) they want.

Despite the fact that Utah has no limitations on fees, they do however set requirements for payday loan lenders that want to operate in Utah. Under Utah law, anyone applying for a license must pay a registration fee, provide certain identifying information, and disclose whether or not they????????ve been convicted or being convicted of any criminal activity. Also, in Utah an applicant is required to renew their license every year.

Utah payday loan laws prohibit non-check cashers from making deferred deposit loans. No one can operate a mobile payday loan operation. A payday loan lender in Utah can roll over a loan, as long as the terms do not total more than 12 weeks.
Each payday loan store in Utah is required to post a complete schedule of interest and fees in dollar amounts, as well as a phone number of someone customers can call to make complaints to. All payday loan stores in Utah must give their customers a copy of the agreement in writing. They must also verbally explain the terms of the contract, fees charged, and the date in which payment is due to their customers.

Nevada laws, this would apply to Cashnet:

Nevada

Nevada is the only state besides Utah that allows payday lending with no limitations. Payday lenders in Nevada are free to charge whatever they want in fees and interest charges. A typical interest rate for a payday loan in Nevada can range anywhere from 300% annual interest to 1000/% annual interest.

Lobbyist for the Nevada Independent Check Cashing Association say the high interest rates in Nevada are necessary to account for the risk of lending money in Nevada.

Despite the fact Nevada puts no restrictions on loan fees, there are however limits on how much a person can borrow. Currently under Nevada law, consumers may borrow up to one-third their net monthly income. Nevada also restricts the number of times a loan can roll over. Under current Nevada law, the maximum number of times a loan can roll over is four.

If a borrower defaults on a loan in Nevada, the interest automatically increases to the prime rate allowed plus 10 percentage points. Nevada currently prohibits payday loan lenders from harassing customers over defaulted loans. This includes but is not limited to posting copies of defaulted checks in public places, a common practice many check cashing businesses use to get their customers to pay back the loan.

I looked up A2B, they do not show as being licensed. If the other company is Cash Central, I show an address for Canada, NV & UT, but I am not showing any licensed. Hopefully someone who has dealt with them may come along to help...

Cash Central is legal in most states.

How would I handle ameriloan in utah. I borrowed 300 and have paid 270.00 in intrest. I stopped payment on them and I need to call them but dont know what to say. I read that they are not licenced. Help please

Have you sent them the cease & desist letter?

I currently have 2 payday loans. It's getting harder and harder every payday to make the payments. They're both storefront locations in Wisconsin. The first one is Check Advance. The loan is for $732.00. I have paid a total of 1,188.00 since June.
The second is Checkmate with a loan amount of $360.00. I have paid a total of $120.00 so far. If anyone could give me some advice on what I could do, I'd greatly appreciate it.