Question regarding PDL company? Should I close banl acct?

Hi there, I am moving this to the payday loan help section so more people will see it.

http://www.debtconsolidationcare.com/paydayloan/explain-pdls-laws.html

Go to the link above and look up the PDL laws for both New York and Pennslyvania.

PDL are prohibited in both states.

So I would say they are illegal lenders. If so you only owe the original amount borrowed with no additional fees.

What was your original amount borrowed
and how much have you repaid?

Until last month, payday lenders that were licensed in another state could legally loan to Pennsylvanians, according to PA law. Even though the law itself didn't change, the Department of Banking announced it was changing its interpretation so that iPDL's would be illegal starting in Feb. 2009. CashNetUSA sued and got an injunction against the Department enforcing the new interpretation. Last month, the Commonwealth Court (the second highest court in the state) ruled in favor of the Department and lifted the injunction. However, CashNet has appealed to the State Supreme Court and it's not clear if the Department is enforcing its new policy anyway or if it's going to wait until all the court challenges are exhausted.

BTW - The Department has said that any loans made by licensed lenders before the policy went into effect were grandfathered. Not really your situation, but just wanted to warn anyone that wants to use the "the loan is illegal" defense with collectors on old accounts.

i really hope you do not borrow more :( if your landlord was foreclosed that should not affect you, i know in NJ all it changes for the tenant is that they have to pay their rent to someone else.. maybe that is how it should be there? i know that this is not what you asked for but I wanted to bring this up since there are so many foreclosure scams out there.

One little, unfortunately not so good, note to what bea wrote. If the bank sells the property after foreclosure and the new owner wants to use it as a primary residence he can evict you upon notice (I forget if it's 90 or 180 days) regardless of the lease. Naturally, you can challenge it in court like you can any other type of eviction. Also, you only get protected if you have a lease regardless of what the new owner wants to do. If you don't have one, you're a month-to-month tenant and can be ordered out on one month's notice. Not sure if that's the case in PA.

good point, but the third party buyer would have to file for a writ of procession and the judge can extend this process for you, they usually will until the end of your lease.. more and more foreclosures result in going back to the bank anyway and most people who buy them are looking to rent so that really is not a big chance of that happening.

Thanks for the foreclosure info, but I am done living in other people's homes until my wife gets out of nursing school. The house we lived in before was sold and the new owners stated I had to get rid of my dog of 12 years. Not an option , so I moved. Moved to this house, landlord has me on month to month lease and I would have only 90 days in a foreclosure. I have a special needs child and moving in dead of winter is not an option, so I am going back to an apartment until the wife gets out of nursing school.

I have been borrowing for probably the last 4months straight. the current loan I have out right now is 1200, you pay back 20 dollars on every 100. I think that if you ask for extension , you pay an additional 20 on every 100 you borrowed. I did read that the loans are prohibited in both states, so my next step would be? I have to do it fairly quickly because my acct. is scheduled for the entire 1,440 to be paid back next Tuesday.

What is my next step? All information would be greatly appreciated? If I owe the debt, of 1,200, can I use the letters you all have here on the site and prevent them from taking the money and then contacting them to schedule a later payment plan? Or hopefully they would wipe the debt clean like others have done for some of you here?

If you could help I would appreciate it, not having to pay them back next week would really help as I just had to take advance from my job today. With moving to a cheaper place and stopping this last payment, it would really get me back on track.

Thanks in advance
Aaron

lend me money? Just curious? I'm not doubting you all, but why are they still allowed to lend and collect money from me?

Because a bunch of regular folks saying it's illegal isn't the same thing as regulators devoting resources to stopping them.

is that right?well quite a few pdl's,collectors,and even rent-a-lawyers have been forced out of business.it just tales time as they need a certain number of complaints.you are right on that with the regulators,but they are illegal and always will be legal.

Yes. That is right, Paul. A lot of regulators won't get off their duffs to enforce their own laws. That's why it's so important for people to educate themselves and be their own attorney generals when they're dealing with these lenders. So when someone asks why payday lenders still make loans even if its illegal, I'm going to call a spade a spade. They are going to make loans - legal or not - until they are forced out of business. And all of us blogging about them being illegal isn't going to stop that. So unless and until the regulators get serious about enforcement (and I disagree strongly with the claim that quite a few have been forced out of business) people need to know their own laws so that (a) they can't be tricked or scared by collectors and (b) they can take action on their own to enforce their rights if necessary.

amen to that.