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PDL company not licensed to do business in Arizona?

Date: Thu, 09/14/2006 - 11:38

Submitted by kota101
on Thu, 09/14/2006 - 11:38

Posts: 131 Credits: [Donate]

Total Replies: 19


What can we do if we have a loan from an internet


I have already checked and they do not have license to do buisness in Arizona but state that they can use their New Mexico one to do buisness in every state?


lrhall41

Submitted by kota101 on Thu, 09/14/2006 - 12:28

( Posts: 131 | Credits: )


Nation wide cash. When first contacted them they told me they could not do loans with anyone in Arizona now they are changing there story


lrhall41

Submitted by kota101 on Thu, 09/14/2006 - 12:35

( Posts: 131 | Credits: )


Either they are licensed to do business in Arizona or they are not it sounds like to me that they can do business in New Mexico not Arizona! Have you figured out how much you have already paid in fees to them?

Quote:

ARIZONA
Ariz. Rev. Stat. ???? 6-1251 et seq. (effective Sept. 1, 2000; sunsets on July 1, 2010).
Applicability: This statute applies to transactions made pursuant to a written agreement in which a licensee accepts a check and agrees to hold it for a period of time before presentment for payment or deposit. Otherwise, the consumer loan act applies. Ariz. Rev. Stat. ???? 6-601 et seq. (36% on loans up to $1,000; on loans greater than $1,000: 36% on the initial $500 and 24% on the excess).
Exemptions: Banks, savings and loan associations, or financing/lending institutions authorized or licensed to transact business under the laws of the United States or Arizona. Any person that is principally engaged in the retail sale of goods or services and that from time to time cashes checks, drafts, or money orders for a fee or other consideration which does not exceed $2.00.
Licensing requirements: Applicants must provide required information, including a financial statement and a credit report. An applicant must be a U.S. citizen, not have been convicted of a crime that involves moral turpitude, and not have defaulted on payment of money collected. Must have a minimum net worth in cash or cash equivalent of at least $50,000. Licenses are renewed annually. Certain reasons for revocation or suspension of licenses are listed, including violating this law.
Required disclosures: Must conspicuously post a notice that states the fees charged at every location that is licensed. Must have a written agreement for each loan that contains the name of the licensee, the transaction date, the amount of the check, the amount to be paid by the consumer, a statement of the total amount of the fees charged, expressed as both a dollar amount and as an annual percentage rate and which also complies with state and federal truth in lending laws. The written agreement must also state prominently: ???????No customer may have outstanding more than one deferred presentment service agreement at one time and the face amount, exclusive of fees, cannot be more than $500.???????
Prohibited acts: Failing to pay annual renewal fees or file the annual financial statement; insolvency; violating the act; conviction of any crime which is a felony or other crime that is a breach of trust or dishonesty; making a material misstatement or omission on the application for a license; operating without a license for each location from which the business is conducted; making a loan without first obtaining reasonable evidence that the account on which the check is drawn is open and active; making loans or extensions of credit other than those allowed under this law; advertising in any way which contains false, misleading, or deceptive statements; engaging in unfair or fraudulent practices; altering or deleting the date on the check accepted by the licensee; accepting an undated check; failing to take measures to ensure that no customer has more than one deferred presentment loan outstanding at any time with any licensed lender in the state; requiring security for the loan other than the check or requiring a guarantee; providing gaming or lottery tickets, alcoholic beverages, or requiring the purchase of other goods and services in order to get a loan at any licensed location. A licensee may not use the criminal process to collect on a deferred presentment loan.
Permitted charges: Not more than 15% of face amount of the check. This fee can be charged only once for each transaction. The fee is earned at the outset and need not be refunded if the consumer repays early. The fee is not interest for any purposes.
Loan terms: Loan can be no greater than $500, excluding the permitted fees. Loan agreement must be in writing. The loan cannot be extended more than 3 consecutive times. For each extension, the licensee shall terminate the previous agreement and sign a separate agreement. The licensee may charged the permitted fee for each extension.
Enforcement: Criminal penalties for making loans without a license is a misdemeanor. License can be revoked for violation of the law.


http://www.consumerlaw.org/action_agenda/payday_loans/content/NCLC_SUMMARY.pdf


lrhall41

Submitted by ouzog12 on Thu, 09/14/2006 - 12:40

( Posts: 120 | Credits: )


Thats what I thought I got SUCKED in to these stupid pay day loans and now almost my whole paycheck is going to them and it seems like I cant pay them off.
I have a $300.00 from FSM and I am paying 105 in intrest every two weeks.


lrhall41

Submitted by kota101 on Thu, 09/14/2006 - 12:46

( Posts: 131 | Credits: )


If an internet pdl isn't licensed to do business in your state, they loaned you monies illegally and if your state has pdl laws/usury laws the internet pdl can not charge you more than your state allows. The internet pdl has to follow the law of the borrower's state, it doesn't matter if the contract states you will follow the lenders state. Find out if you have paid more interest/fees than your state allows, file a complaint with the AGs office and send pdls letter stating AZ laws. I spoke with the NM AGs office and they told me that it doesn't matter if the internet pdl is licensed in their (NM) state they have to follow the borrower's state law. And the borrower needs to file a complaint with the home state because they have jurisdiction, not NM. Hope that helps. There are templates on pollyandsays blog that you can use to fax, e-mail,and send to your pdls.


lrhall41

Submitted by WHEREAMI? on Thu, 09/14/2006 - 12:59

( Posts: 5263 | Credits: )


So I can fax and mail this. Since I have been paying around 269% to different compaines.


lrhall41

Submitted by kota101 on Thu, 09/14/2006 - 13:27

( Posts: 131 | Credits: )


Hi, I'm new to this site. I have 5 pd loans, none of which are licensed to do business in NH (my home state.) I have been faithfully getting ripped off by 4 of 5 of these companies for over 4 months, and have only now become wise to what I can do. Just want to clarify what I believe to be my case here.

Since there are no interest caps in NH, but usury laws require the internet lenders to be licensed here, (which none are), what is my recourse? Since I have more than paid the original loan amounts (including fees) am I within my rights to refuse anymore pymts, stating that these companies loaned me the money illegally?

Any help would be greatly appreciated, thanks in advance.


lrhall41

Submitted by aidansmum on Fri, 09/15/2006 - 16:05

( Posts: 2 | Credits: )


You owe only that much your state laws allow. Not, what the companies are showing you in the balance especially if they are charging excessively on your account. You can post your complaints against the unlicensed internet loan companies at the state regulator office. They need to be informed about them first. You also need to report the local AG's office and the FTC, BBB about the internet lenders not licensed in your state.


lrhall41

Submitted by IncredibleHelp on Fri, 09/15/2006 - 16:31

( Posts: 492 | Credits: )


Here's where it gets murky... since there are no interest caps in NH, than am I to assume they can charge me whatever they want?

Another usury law states that it's illegal to renew or extend a loan (unless the borrower has the proceeds to use after the renewal). Since all of these have been renewed illegally, will that cover the exorbitant "rates" they have charged me?

Thanks again.


lrhall41

Submitted by aidansmum on Fri, 09/15/2006 - 16:36

( Posts: 2 | Credits: )