Research shows payday lenders should be licensed

Thanks for the update. If they must be licensed in Ohio to do business with Ohioans, did they mention what happens if they aren't?
I have sent notices, filed complaints about one payday loan lender with my office of consumer protection, Canada's equivalent and my AG. Basically for PRL/Sonic disclosing that I had defaulted to my payroll department. Canada's bureau redirected me to my local offices, even though I had sent them a copy of the "fine print" that deems the transaction to have taken place in British Columbia and goverened by their bylaws. They said that they would investigate the address, but that for consumer protection/fair credit type things I needed to file within my state. I often wondered if they are licensed to do business in Texas, and if not what would happen if they were caught doing it?

When I called the Texas consumer protection office, they had no record of a license for Sonic, PRL, E-Care and all the names Sonic goes by. This call was placed in August 2005, they may have smarted up and got themselves licensed. But I highly doubt it. Just like United Cash Loans, their Carson City address is a forwarding address. The office they claim to be in is a vacant office. David from Consumer Affairs stated that they have received responses from United Cash Loans on consumer complaints from California, Oklahoma, Kansas City, Kansas. They have no idea where their office actually is. If anyone has had trouble with United Cash Loans, please file a complaint with the Consumer Affairs division in Reno, Nevada.

I'm caught up in the payday trap also and I'm new to this site. I have also had trouble with united cash loans. What exactly are you talking about and how do you go about filing a complaint. I'm in michigan

good4me

Check the statutes as per the state laws and see if your payday loan company is licensed to do business in your state. You can get more information in this regard with the consumer protection office in your state.

Do you have a copy of the agreement contract signed with the payday loan company? You must have a proof of your agreement with the company so that there is a base if you want to file any dispute with the company later.

If everything appears fine, make a payment arrangement with the lenders and pay off the debt. Your credit report is present hurt because of these loans. It will take a good turn after you have paid all the accounts.

A freeman,

I asked them in my original e-mail to the ohio division but I guess that question really wasn't answered. I will reply back with the same question. You can check with your state's divsion of financial institutions as well. I am able to check online if a company is licensed or not. It's in accordance with the check cashing loan act in ohio. Also, when I talked to the FTC recently regarding mypaydayloan.com and the issues I was having, they said the loan officially originates in the state that you are in. You need to contact your consumer protection office or attorney general first. I also have filed complaints with other states as well, where the lenders are said to be located. I'm taking it as if they aren't licensed in my stated, then it's not legal for them to loan money. I will have to do further research on it but it's a good sign, especially with lenders like Sonic. I have a defaulted loan with them and it's trying to be worked through with my debt consolidation company. They have broken the law repeadetly this week by calling me at work. They also sent an e-mail to my boss last week stating that I had an open/defaulted loan with them. I've come to the conclusion that shutting these places down starts with one voice. I'm the only person who has filed a complaint against Sonic in the state of Ohio, so far. That could change. Look what happened with Quik Payday in the state of Colorado. Did you read that article? They are also listed on my debt consolidation program and want so much more money in a month that I really can afford right now. I will keep you updated.

Also file a consumer complaint in Delaware and Pennsylvania against Sonic. I have a PA address for Sonic on paperwork they sent me. Their collections department is supposedly located in Delaware from what Sonic told me.

Mom of Twins,

I agree that I doubt Sonic bothered to get themselves licensed in any state. They just like to play games. I have filed complaints with all three attorney general's offices. I also filed a complaint with the BBB. I added to a complaint with my state's consumer protection department today. It will go out in the mail tomorrow. I sent Sonic a certified letter last week asking for an itemized statement of my account. I seriously doubt that I will get anything back. We'll see where this goes.

Once Sonic gets the complaints from the consumer protection and attorney general's office, they will change their tune. Or at least they did with us.

I'm sure they'll change their tune. They just want to be difficult right now. Thanks for the e-mail address. I will take care of it when I get home from work. Derek did admit to T & C they receive the copy of my fax. I also have a printed fax report where it went through to their fax number.

I am hoping that if the authorities get enough complaitns about them that they will shut them down for good.

I hope so too... Let's work together to get them shut down :D

This is funny. I received a phone call from an online payday lender a litle while ago. It's one that I paid and didn't default on. They kept asking me if I wanted a new loan, I had to continously say no and to not contact me anymore. I would no longer being doing business with their company. They seemed a little surprised but it felt so good to say no. It's nice knowing that I don't have to rely on payday lenders anymore :-)

msmishele30, be firm on what you have decided. Do not lose your determination as time goes by. Remember, you are doing a good thing towards your financial management and towards you. :D

Okay, I sent another e-mail to the Ohio Division of Financial Institutions last night. One payday loan company states they are licensed in another state and it doesn't matter that they are not licensed in Ohio. I digitally signed the loan agreement where it states that the loan takes place in Delaware. It says it is "goverened" by the laws of Delaware. It doesn't matter where you are taking the loan from or viewing the website. Basically, it states somehow you are crossing state lines in order to obtain the loan. They were nice enough to e-mail me a copy of the contract and such. I also left a voice mail with my contact at the attorney general's office. I'm just trying to cover the legal basis here but I think it's a good question. Because I have other contracts with lenders that state this as well. Some were faxed in and some were digitally signed. I'm thinking of sending some info in to the attorney general for further clarification. First, I will wait to hear back on the matter. I also want to find out if they have any legal authority to collect on the loan if they are not licensed in their state either, as well as not licensed in Ohio. David, I'm very determined to see this through and continue my payments through debt consolidation.

I was reading up on the Ohio Checking Cashing Loan Act and there were revisions made last year. Ohio does have bad check laws, including ach transactions and such. Now, I talked to someone else at the FTC, she stated it was state law vs. state law regarding where the loan took place.

Someone was asking about United Cash Loans. I do have some contact information from them:
198 S Eight Tribes Trail
POB 111
Miami Ok 74355
fax #800-803-9137
email for disputing is ...
compliancedepartment(at)UnitedCashLoans.com

Hope this can help out!