Question about Washington EPP

The EPP doesn't have anything to do with WA law, it's guidelines set forth by the CFSA. If this payday loan company wishes to remain a member they must follow the industries best practices. If they fail to follow the guidelines they need to be reported to the CFSA so they can have their member status revoked. Click the link below to read the CFSA's best practices, refer to number 11.
http://www.cfsa.net/industry_best_practices.html

I would print it out and take it to the store, show it to them and ask them to honor it. If they still won't honor it I would tell them you are going to file a complaint with the CFSA to inform them one of their members are NOT following the best practices set forth to remain a member. You can contact the CFSA and fill out a complaint at the following email: [email]cfsa@multistate.com[/email], or you can call them at: Phone: 703-684-1029.

Thanks for your input. Why do you say the EPP doesn't have anything to do with WA law? My understanding is that WA is one of the few states that has written the right to an EPP into its payday loan laws. Now I need to understand how fourth consecutive loan is defined. Fourth completely paid back or fourth taken out?

[quote]Repayment Plan: A company and a borrower may voluntarily enter a payment plan at any time. A borrower, however, has a right to convert a small loan to a statutory payment plan after four successive loans and prior to default on the last loan[/quote]

Well, the way I interpet it- the EPP is an extended payment plan that is a guideline from the CFSA, and the laws above for WA expressively specifies "repayment plan", maybe I am wrong but I still think if you take the information I suggested above to the store front they should abide by it, or have their membership jerked from them.

Turk is correct. WA is one of the few states that have a mandated EPP and this takes precident over the CFSA Best Practices.

I read it as 4 paid loans and then on the 5th you can eneter the repayment plan. It has been along time since I have had anything to do with thier regs, so I would call the state as you have mentioned.

[quote]Repayment Plan: A company and a borrower may voluntarily enter a payment plan at any time. A borrower, however, has a right to convert a small loan to a statutory payment plan after four successive loans and prior to default on the last loan[/quote]

Yet the laws state : A company and a borrower may voluntarily enter a payment plan "at any time"???

"Yet the laws state : A company and a borrower may voluntarily enter a payment plan "at any time"??? "

Shazzers,
I believe that means a company and a borrower don't have to wait until after four loans, they can enter an EPP sooner if they want to.
I'm going to call DFI today to get a read on what "after four successive loans" means. In the past with other lenders, I seem to remember that it was the fourth loan I could convert. If it really is the fifth, I'll do that and then finally be done with payday loans!
TurkTaz

AFTER 4 consecutive loans means that the EPP can be evoked on the fifth loan

Here is the answer I got from the Washington DFI:

"It is difficult to answer with a specific ???correct??? interpretation of the law, because only a court can really make that determination. However, I can tell you what the Department has gone by with regards to payment plans and RCW 31.45.084. I preface this by saying that it is understandable how XXXX comes to its conclusion that a fifth loan is required, as the RCW says ???after four successive loans???. However, the Department interprets the statute to apply during the fourth loan as the RCW says ???after four successive loans and prior to default upon the last loan, each borrower may convert their small loan to a payment plan. Thus, once the fourth loan is taken out, and before that fourth loan goes in default, a consumer may request a payment plan."

I faxed that response to the PDL. So, we'll see what they say now.

TurkTaz

Okay, I just got off the phone with the PDL company. They said that although their policy is EPP on the fifth loan, because of the way DFI interperts with law, they'll allow me to do the EPP now.
If anyone else in Washington has this problem, don't let them pull the wool over your eyes. It is repayment of the fourth loan that can be EPP.
TurkTaz

I'm glad you clarified this TurkTaz, thank you!