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Payday One

Date: Mon, 06/07/2010 - 13:25

Submitted by anonymous
on Mon, 06/07/2010 - 13:25

Posts: 202330 Credits: [Donate]

Total Replies: 3


Hello everyone, I need some answers about Payday One. I reside in South Carolina by the way. I recently was approved for a $650(an amount I did not choose) loan with PDO, my payments are $131.32 bi-weekly. For my first payment I gave them $350 towards my principle, so instead of having 15 scheduled payments I now have 4, which is great, but I'm a bit confused about their practices. I came across this website a few days ago while doing research on this company and payday lending laws of this state. I see that they may be or are a CSO. So what does this mean? Is it legal for them to approve me for $650 instead of the maximum amout allowed in SC? I did not want $650 in the first place, I only needed $300. I called them after it was deposited and one of the reps told me that they choose the amount based on my location and my income and that they couldn't deduct $350 from my account. I would just have to put it towards the principle when my first payment is due. They wouldn't even let me make a payment before my first due date, which I thought, was really strange. Is it also legal for them to charge 445.39% APR? The main reason for my confusion is the fact that they do not currently lend to some states, the ones where payday loans are illegal. Some of the states that they do lend to offer different loan amounts ranging from $100-$1,000, but in SC the chart only shows one amount. Also, when you click on the state of MD, it clearly states that they operate as a CSO. It doesn't state that for SC, or other states.
Here is the link to that page:
Any helpful insight will be greatly appreciated. Thanks!
link removed


A CSO is a credit service organization. According to what I can find, a payday lender is only allowed to lend you $300 at most and can only charge you 15% of the face value of the check in interest.
The fact that they didn't give you any control over how much you borrowed and that they are clearly violating SC's payday loan law even if they are licensed sounds very fishy.
I can't find a list of SC's licensed CSOs online, but I bet if you contact the Department of Consumer Affairs you'll be able to find out for sure. You should contact the department anyway to file a complaint against Payday One, along with the state's Attorney General's office.


lrhall41

Submitted by OVLG Attorney on Mon, 06/07/2010 - 14:26

( Posts: 511 | Credits: )


Shazzers--Sorry for posting the link, I didn't know I wasn't allowed to do that.
Yes, I read that about CSO's after I posted, but I'm trying to figure out if they are acting as a CSO or payday lender in South Carolina. I posted that they state they are a registered CSO in Maryland, but not on any other state. They also do not lend to anyone residing in the states where payday loans are illegal. So, if they are a CSO, would that not matter? Wouldn't they be able to lend in any state if all they have to do is register with the Secretary of State. I apologize for sounding repetitive, I'm just trying to figure out why Payday one has different loan amounts and interest rates for each state, and if they are a CSO then why do they not lend to states where payday loans are prohibited, except for MD? It just seems fishy to me, I suppose. They have their license posted on their website for SC, but it doesn't say they are a CSO.


lrhall41

Submitted by on Mon, 06/07/2010 - 17:25

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