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Sonic Cash Help - Please advise ASAP!!

Date: Fri, 05/02/2008 - 07:41

Submitted by jt_91972
on Fri, 05/02/2008 - 07:41

Posts: 110 Credits: [Donate]

Total Replies: 6


I have been going back and forth with them after sending them a letter last week not to revoke my account, cease and desist calling me and revoking them from garnishing any wages. I proposed I would pay them the money owed less the fees etc.. I took out a loan of $500 and paid $270 toward it. They want $540. I am not budging.

Here is the latest email from them:
___________________________________________________
Jon,
According to Pennsylvania statute 6203.A: Since the Company will not have any offices of any kind in Pennsylvania or people physically present in Pennsylvania acting as principal, employee, agent or broker as those terms are contemplated in Section 3 of the CDCA, the Company is not "in this Commonwealth" as that term is used in Section 3 of the CDCA. Therefore, it is the position of the Department that the Company is not required to obtain a license under the CDCA in order to originate unsecured consumer loans via the internet to Pennsylvania residents. This position is conditioned upon the Company being licensed or otherwise authorized under the Company's home state law to engage in this type of lending activity.
In our email response to you last week we advised you that we do not have any store fronts in your state. We are strictly internet based. You are bound by Idaho State Law. As per your loan agreement that you electronically signed you MUST pay the balance in full. That balance is $560. We recommend that you set up arrangements on that amount. If you fail to do so we will secure funds as per your loan agreement to pay this loan off in full as we see fit. Please respond with an arrangement.
____________________________________________________


How should I proceed? Do I have any chance of not paying what they want? Please advise experts....thanks!


I was under the impression that if the payday loan company is not licensed in your state then they are illegal and you are only responsible for the principal. I would contact your state's office of financial and insurance regulation to see what they have to say about it.


lrhall41

Submitted by minsmi on Fri, 05/02/2008 - 08:47

( Posts: 57 | Credits: )


Jt, The way I am reading this, you are in PA and the pdl is in Idaho. If this is correct, 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. If this lender is licensed in Idaho, you will need to follow the laws of Idaho. If they are actually licensed in Idaho, you will need to work out something with them.

[You will find the Payday loan laws for Idaho here (just select your state),
http://www.debtconsolidationcare.com/paydayloan/explain-pdls-laws.html


lrhall41

Submitted by RoxyNY on Fri, 05/02/2008 - 10:26

( Posts: 4178 | Credits: )


minsmi, You would be correct for several of the states. Some states as long as the pdl is licensed somewhere, the the borrower would need to follow the laws of that state, and in other state, internet pdls are prohibited. It took me awhile to figure all this out and learn which follows which laws.. :D


lrhall41

Submitted by RoxyNY on Fri, 05/02/2008 - 10:30

( Posts: 4178 | Credits: )


Roxy, is Michigan like Pennsylvania? I really hope not... I have some Utah PDLs that I am fighting because I think they're illegal... :(


lrhall41

Submitted by minsmi on Fri, 05/02/2008 - 12:27

( Posts: 57 | Credits: )