Sonic Cash Help - Please advise ASAP!!
Date: Fri, 05/02/2008 - 07:41
Here is the latest email from them:
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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.
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How should I proceed? Do I have any chance of not paying what they want? Please advise experts....thanks!
State Laws
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.
Jt, The way I am reading this, you are in PA and the pdl is in
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
Roxy is correct - As long as there are no physical locations in
Roxy is correct - As long as there are no physical locations in PA, and the company is licensed in it's home state, the loan is legal.
minsmi, You would be correct for several of the states. Some s
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
No, Michigan is not like Pennsylvania. They must be licensed in
No, Michigan is not like Pennsylvania. They must be licensed in Michigan to lend to Michigan residents.