CT Payday Loan Laws
Date: Mon, 06/28/2010 - 06:02
Below is an excerpt from a letter the CT Dept. of Banking sent to Payday Loan Yes (not that they listened!) regarding the payday loan laws in CT.....
Excerpt from Sec. 36a-555. Loan business to be licensed. No person shall (1) engage in the business of making loans of money or credit; (2) make, offer, broker or assist a borrower in Connecticut to obtain such a loan; or (3) in whole or in part, arrange such loans through a third party or act as an agent for a third party, regardless of whether approval, acceptance or ratification by the third party is necessary to create a legal obligation for the third party, through any method, including, but not limited to, mail, telephone, Internet or any electronic means, in the amount or to the value of fifteen thousand dollars or less for loans made under section 36a-563 or section 36a-565, and charge, contract for or receive a greater rate of interest, charge or consideration than twelve per cent per annum therefor, unless licensed to do so by the commissioner pursuant to sections 36a-555 to 36a-573, inclusive.
Sec. 37-4. Loans at greater rate than twelve per cent prohibited. No person and no firm or corporation or agent thereof, other than a pawnbroker as provided in section 21-44, shall, as guarantor or otherwise, directly or indirectly, loan money to any person and, directly or indirectly, charge, demand, accept or make any agreement to recieve therefor interest at a rate greater than twelve per cent per annum.
I have sent copies of this to the payday lenders I had overpaid. Most have not bothered me since! I am now almost payday loan free (only one I still owe a balance of original amount borrowed and payday loan yes still calls but I ignore them) and I owe it all to the people on this forum who have been so helpful in getting me out of the mess I had gotten myself into. THANK YOU SO MUCH!!
Excerpt from Sec. 36a-555. Loan business to be licensed. No person shall (1) engage in the business of making loans of money or credit; (2) make, offer, broker or assist a borrower in Connecticut to obtain such a loan; or (3) in whole or in part, arrange such loans through a third party or act as an agent for a third party, regardless of whether approval, acceptance or ratification by the third party is necessary to create a legal obligation for the third party, through any method, including, but not limited to, mail, telephone, Internet or any electronic means, in the amount or to the value of fifteen thousand dollars or less for loans made under section 36a-563 or section 36a-565, and charge, contract for or receive a greater rate of interest, charge or consideration than twelve per cent per annum therefor, unless licensed to do so by the commissioner pursuant to sections 36a-555 to 36a-573, inclusive.
Sec. 37-4. Loans at greater rate than twelve per cent prohibited. No person and no firm or corporation or agent thereof, other than a pawnbroker as provided in section 21-44, shall, as guarantor or otherwise, directly or indirectly, loan money to any person and, directly or indirectly, charge, demand, accept or make any agreement to recieve therefor interest at a rate greater than twelve per cent per annum.
I have sent copies of this to the payday lenders I had overpaid. Most have not bothered me since! I am now almost payday loan free (only one I still owe a balance of original amount borrowed and payday loan yes still calls but I ignore them) and I owe it all to the people on this forum who have been so helpful in getting me out of the mess I had gotten myself into. THANK YOU SO MUCH!!
Great stuff. I, too, was helped by this forum. I still get s
Great stuff. I, too, was helped by this forum. I still get some calls but my paycheck is mine again. I onyl wish I found it sooner....... Congrats !1