Law regarding paying only the principal balance to illegal PDL
Date: Fri, 01/28/2011 - 11:26
This is a 2 part question:
According to SC 34-39-130 - (C) A person may not engage in the business of deferred presentment services with a customer residing in this State, whether or not that person has a location in South Carolina, except in accordance with the provisions of this chapter and without having first obtained a license pursuant to this chapter(C) A person may not engage in the business of deferred presentment services with a customer residing in this State, whether or not that person has a location in South Carolina, except in accordance with the provisions of this chapter and without having first obtained a license pursuant to this chapter.
"Without having first obtained a license" - but it doesn't say a license in the state of SC........so if a PDL is licensed in Utah, does that satisfy the above?
Question 2: Assuming they must be licensed in SC, where is there a law that says that I am only legally obligated to repay the principal balance if they are illegally lending in SC?
Click the link below, that is the Utah licensee data base. http
Click the link below, that is the Utah licensee data base.
http://168.177.228.15/reglistp.htm
Just about all businesses need some type of license to operate. There may be local, county, state, and or federal licensing requirements, it depends on what type of business it is. Payday lenders are a business conducted over the Internet. The fees associated with getting a license are typically minimal so it's beyond me why most of these lenders to not acquire one, except in the case where a payday loans are strictly prohibited or the state has a brick and mortar law.
If you go to your state DFI website, you can search through all the regulations, but, I can't tell you the exact paragraph of it's location. It stands to reason that any business operating without the required licensing, are not entitled to the privileges that come with it. The purpose of these licenses are regulatory and to fix our pot holes (so to speak lol).
I also found in the SC state laws that a payday lender can only
I also found in the SC state laws that a payday lender can only charge interest/fees of $15 per $100 borrowed, so my loan of $350 should have been no more than a total of $402.50 - Fast Cash has charged me $871, and if my math is correct, that would be about 248%!!!! I would say that's illegal in SC, too!
Yup, and that's because they aren't lenders, they are Internet c
Yup, and that's because they aren't lenders, they are Internet criminals, plain and simple. Just another form of loan sharks.
There is no "law" that says you must repay the principal amount
There is no "law" that says you must repay the principal amount borrowed. Legally, you're not obligated to repay them a dime as the contract is null and void since they're lending illegally. Morally, however, you should pay back what was deposited.