Payday loans & grandfather under the statute

Are they now PROHIBITED??

They are not prohibited. They can't be auto refinanced. They must be paid in full at the end of your loan period. Maximum loan length is 30 days.

Ok, why after 09/01/06???

ginurse:

You should contact the Division of Financial Institutions in your state with this question. They could provide a definitive answer for you.

I believe the after 9/1/06 pertains to the new law concerning military personnel.

I called the bank audit division for state of wyoming and found out they were wrong. I then called Payday One and talked to sthe same person I had spoken to last nigh. I told her that she was wrong and asked to speak to her supervisor. I was told by her supervisor that the loan was originated out of Delaware ( he was wrong) it was New Mexico and that because they are an internet lender they only have to follow the laws from where the loan originated.

They have to follow the laws of the state in which they are doing business--so if they are issuing loans to people in Wyoming, then they have to follow the laws of that state. And if they are not licensed in your state, then they have no leg to stand on.

That is right. If they loan to someone is Wyoming, they have to follow laws as if they were there too. If ppl like them step foot in your state to persue you, they will be getting in trouble themselves.

Also, if not rollovers are allowed in Wyoming then that's another state violation. It seems that you have paid enough on a $400 loan. I would send them a letter via certified mail with return receipt stating that you want your account marked as paid in full. You can see a good sample letter in Polly's blog.

Feel free to use the template letter on my blog. PDL's are not known for their honesty, so stick to your guns and report them to your AG and your banking commission.

Polly, I have your letter but I am confused at the section where it starts
"Dot Com repeatedly and consciously chose to process Pennsylvania residents???????? applications and to assign them passwords. " and sites something about the world wide Volkswagen. Could you please help me understand that part?

It sets a precedent regarding internet transactions and governing law. This is a Federal ruling from the Western District of Pennsylvania. In a nut shell it states that although the company was in a different state, it is required to comply with Pennsylvania Law when dealing with Pennsylvania residents.

So since I live in Wyoming should I leave that out of my letter?

As I recall Wyoming requires lenders to be licensed and has interest rate limits, so I would leave it in. That is the point of the citation. Your lender is probably sitting in New Mexico or Delware with really crappy consumer laws. They are lending to you in Wyoming, thus they need to conform to Wyoming laws.

Thanks.

Anytime.