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Posted: Tue Jun 05, 2007 1:25 pm Subject: Opinion regarding payday loans

I had eamiled the financial officer who oversees payday lenders in my state. Below are parts of the emails that shows me that not all state are going to aggressively uphold there laws to outdide lenders.

Him:
You may file a written complaint to my attention at Office of Financial Regulation, 400 W. Robinson St., Orlando FL 32801-1799. Please include any copies of contracts, disclosures and other communications with your complaint. Please know however that internet companies present significant issues in our attempts to resolve many of these complaints

Me:
Is it true that these companies are supposed to obey the interest laws of this state and be licensed here in order to operate legally in your opinion?

Him:
There is not a definitive answer your question at this point.

Many people on the forum including myself have said that internet lenders must abide by the laws within the state they are lending. I know longer believe this to be true. I think that it matters on the agressiveness of the Dept. in charge in a particular State. In contrary to Florida, Illinois and Virginia have been very aggressive in protecting their citizens. While still others take a laizzez faire attitude. Is my French spelled correctly?

Posted: Tue Jun 05, 2007 2:51 pm Subject:

It depends on state laws . . . . Most states have "long arm" statutes that say that if an electronic business transacts with a consumer they have to abide by the laws of the consumers state. Not all states have laws like this.

Also, when a lot of the "pdl" laws were written, internet pdl didn't exist in such numbers, so language was not used to include them. That can create loopholes that allow these businesses to loan to consumers without being licensed in that state.

Posted: Tue Jun 05, 2007 3:04 pm Subject:

Just because a state has a long-arm statute doesn't mean that statute is "legal." For example, most states have usury caps, but federal law specifically allows banks to ignore those caps if they are lower than the rates allowed in the bank's home state. The same thing with sales tax - if you live in the same state as the seller he has to charge you sales tax when you buy something. But that state can't charge the tax if you live somewhere else.

Don't get me wrong, I'm a big believer in AG complaints. The more expensive you make it for a lender to collect on a small loan the less likely they are to push. But I don't buy the widespread belief on this board that it's always the borrower's state laws that control.

If it were that simple, there wouldn't be a big case going on in Kansas right now to decide whether a Utah lender has to follow Kansas law. The judge would have just dismissed the lender's lawsuit when the State Bank Commissioner asked her to. Instead, the judge denied the motion and the case is going to trial.

Posted: Tue Jun 05, 2007 3:14 pm Subject:

Exactly! Even if there are laws, they are always up for interpretation . . . . .

Here u go · Posted: Tue Jun 05, 2007 10:08 pm Subject: Please help ME!

Here is my story, I have stop going to school (Devry) and my student loan is going crazy.

This post has been moved to the student loan forum.

Posted: Wed Jun 06, 2007 5:28 am Subject:

You should post this as a new topic. You will get a much better response.

RachelRN · Posted: Fri Sep 26, 2008 3:07 pm Subject: Payday Loans

Hey everyone~
I really need some help....I have approx 14 payday loans, all internet, and I have taken the first step and closed my account. I reside in Illinois. The next step is to make settlement offers to these companies...Any suggestions? Should I only offer them the principle amt in full? Some of them were new loans that I have paid no interest on, and some i've paid a couple rollover fees. I have had accounts w/ all these sharks in the past and paid them gazillions in finance fees. Please help!!!
RachelRN

Posted: Fri Sep 26, 2008 7:33 pm Subject: reply

hello rachel.if you could list your pdl's and the amount borrowed
i can tell you if they are licensed or not.by chance if they are not you only owe the principal minus anything taken for fees.i know a good majority are not licensed.

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