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I just got off the phone with Ande at the KY State Department of Financial Institutions. She confirmed to me that internet payday loans are illegal in the state of Kentucky. She said close your acct, change your numbers and inform family, friends and coworkers of what these people are capable of. Do not pay them any money. In my case I have paid them many times over so it is my feeling that they actually owe me. FAT CHANCE.

She said there is nothing they can do to them, however she did ask their names, but that there will be new legislature 7/01/08 regarding these internet payday loans.

I just wish I knew more sooner. I have paid 1000s and 1000s of dollars to these people trying to do the right thing.

I hope this helps someone else sooner in the process than I was able to catch on.

Gosh I am so sorry, it's a shame. Is there any way you can get a refund on some of those, did you try? :?

Sub: #1 posted on Sat, 04/19/2008 - 14:17

Shazzers Shazzers
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Probably not much chance but I hope to start working on some refunds in the near future.

Sub: #2 posted on Mon, 04/21/2008 - 05:06

motomom716 motomom716

(Posts: 141 | Credits: )

This info has been posted for quite a while . . .

You will find the Payday loan laws for Kentucky here (just select your state), dls-laws.html

Emails to and from the banking dept:

To Whom It May Concern:

I have a question regarding internet payday lenders. I have visited the Department of Financial Institutions site and found some information. However, I am still a little confused.

I understand that storefront payday lenders are legal in the state of Kentucky and have printed out the laws applying to them. However, there is nothing regarding internet payday lenders.

I did a search on the site to see if some internet payday lenders were licensed in Kentucky. No results came up for any of them. If the case is that an internet payday lender is not licensed in the state of Kentucky, what then?

Internet payday lenders are claiming they do not have to comply with Kentucky state law. They claim they comply with the law in which they are located.

If they are not licensed in the state of Kentucky to fund loans, are they not in violation of some sort of law?

Any help in this matter would be greatly appreciated. At the very least, it might clear up my confusion.

Thank you so much for your attention in this.


Internet payday lending is illegal in Kentucky.

Chris Thompson
Compliance Branch Manager


I have emailed before regarding internet payday lending and received the reply that internet payday lending is illegal in Kentucky. Thank you for that information.

I now have another question. If an agency is attempting to collect on an internet loan - which was illegally funded - does the collection agency need to be licensed in the state of Kentucky? Is this even a legal debt to collect on?

Thank you for any information you can give.


I am not sure who if anyone licenses collection agencies. This Office does not consider it a legal debt as the entity was not licensed to do business in Kentucky.

Chris Thompson
Compliance Branch Manager


I have viewed our state pay day law and understand that a store front pay day loan company can collect one NSF fee if your check is returned by your financial institution.

However, I have a question. How many times can a pay day loan company run the check through to your financial institution?

I have a pay day loan company that I am working on setting up a repayment plan; however, they keep running the check through my financial institution every week.

I was under the assumption that pay day loan companies may run the check through only once; however, I could be misunderstanding.

Could you please clairfy for me how many times a store front pay day loan company can run your check through your financial institution? I would like to be sure this company is following the law.

Thank you in advance for any answers/advice.


There is nothing in the check casher statute that prohibits the number of times a pay day loan company can run the check through; however, it is my understanding that banking law on allows a bank to do it only twice.

Chris Thompson
Compliance Branch Manager

What does this mean?

Internet based companies are illegal. They cannot collect on the debt through any means. Kentucky does not license them, and does not allow companies not licensed in KY to lend legally.

Storefronts can charge you 15% of the face value of the check.

Rollovers are not allowed.

A big Thank You! to Cannr for providing this information! :D

Sub: #3 posted on Mon, 04/21/2008 - 10:30

goudah2424 goudah2424

(Posts: 7936 | Credits: )

Goudah - I understand most of this is already posted on here, I just wanted to also let people in KY know that there will be new legislation 07/01/08 regarding the online payday loans. Just something to be hopeful for people in the future so they do not fall into this mess like I did.

Sub: #4 posted on Mon, 04/21/2008 - 11:45

motomom716 motomom716

(Posts: 141 | Credits: )

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