Confusing laws regarding payday loans..

Where is mperez, our New York expert??? :shock:

Jen - I found this for you:





All of this information is from the NY Dept of Banking website. The ONLY businesses allowed to do payday loans in NY are FDIC insured banks. No other payday loan companies are allowed to lend to NY consumers.

Goudah, you rock!!! I knew I could depend on you.

Thanks for taking the time to explain it to me.

Man. A lot of knowledge gained from that post. Truly awesome. You gotta love New York.

It seems that a lot of states interpret there own laws differently from one person to another within the same bureau. I also see very few that are willing to aggressively enforce their laws for one reason or another. In Florida where I am now residing the Division of Financial Services told me that the internet lenders pose "serious issues" regarding complaints. They also said that they DO have to be licensed. A case was won by a borrower in the Florida supreme court against the PDLs and a huge cash settlement was awarded just last year. Then why are there "serious issues?" I emailed a letter to the CFO urging her department to take a more aggressive stance on this. We have in place very good laws to protect the residents that the storefronts adhere to only to have these IPDLs trash these laws with no fear of repercussion defeating the entire purpose for them and offering unfair competion to the businesses that follw the law. The CFO never responded to my letter. I will now go to the editors of the city papers and the Governors office. Forget the Attorney General, I have heard of no person that even heard a peep from them after filing. For me the FTC and the BBB have been my best allies.
It is my belief that we need federal regulation against, not only the lenders usurious interest rates but there often brutal threatening collection tactics. They do not really fall into the category of any of the federal laws. Because they are technically lending money borrowed from larger institutions they feel that the state laws don't apply to them as they are not primary lenders. But when you use the fdcpa against then they say they are the original lender. This is not defined.
I said in a thread months ago that we should write our congressmen and senators urging legislation but that got a very lukewarm reception in the forums.
I still hold that opinion!

Some NY expert I ended up being. Go read my post on the response I got from the NY AG. I don't know if it will help but I'm going to call the hotline that was referenced in your reply I know it's outdated and hopefully they will still help.

frog, maybe you have some suggestions for mperez? Maybe other avenues she can try? Please. Someone has got to be able to help her!

From what I have read from Goudahs post it is the banking dept that cotrols the lending industry. here is their info. I hope it is helpful.
Where to Complain, Get Information:
Regulator: New York State Banking Department
Address: One State Street New York NY 10004
Phone: 1-877-BANK-NYS

I went into Google and put in New York Payday Lender Case and Holey Moley you should see the aggressive steps New York has taken in the past. The is a volume of info there. Try it.

Yeah, it seems like the problem may be that was the last AG's doing . . . . The new one may not be so anti-payday loan . . . .

How can there be such a difference between the two? I mean, the laws are the laws, so they should be enforced in the same fashion, no?

This would be just my luck, to have a schmuck AG with no backbone.

You would think these cases would set a precedent. I have the same problem here. Even though the case Jones vs Mr Payday or whatever was a "landmark ruling" it doesn't define anything? I don't get it. I guess i watched too many TV shows and movies where they would say, "Let me refer you to the case of....." and that would be all they would need. Frustrating!

Well, the AG can decide what it wants to pursue and what it doesn't. Under Spitzer, they took an aggressive stance against payday lenders.

Different politicans have different agendas . . . .

Frogpatch, I saw your post regarding all those articles on NY payday lending, and I agree, Spitzer was great about going after these loans sharks. I would hope that Andrew Cuomo, the new AG, would be just as diligent, but that doesn't seem to be the case with Mperez... :(

There was a great amount of info here in these posts. But I do agree that what happens is determined by how agressive the AG office is. I am in Indiana and everytime you call the DFI office you get a slightly different response. Goudah had called for me recently and was told...if they are not licensed, they are not legal...and that was the intent of the law. But that's not always how it is interpreted. I just recieved letters from my AG office saying they could not persue legal activity against the ipdls but would mediate on my behalf. What we need is something stronger on a federal level so that all of them are treated the same.

now i usually disagree with alot of the bull flop you people think spiting laws and iterperating them complety wrong and well thinking your owed something and collectors are bad people you you cant pay you cell phone cause you dont feel its right they charged you blah blah blah but payday loans are a SCAM and so are quick chash loans like cash call I WOULD NEVER SEND A DTR TO THESE PLACES TO PAY ME NO MATTER WHAT THE MONEY I WOULD MAKE DONT DO IT they companies operate on diff laws then normal places able to charge insane rates ell cash call 2,500 loan goes at 98%!!!!!!!!!! thats horrible people if you owe a big debt get a loan pull 401k pension something this helps you credit and u never get another call dont use there options

Collector, your post was like one long, run-on sentence.

BTW-401k loans do not build your credit, where did you hear that?

collector, thank you for sharing that you believe "some loans" are okay and that we "determine the laws", blah, blah, blah. And that we "think collectors are bad". However, then you go on to state that pdl loans and Cash Call are horrible and don't deal with them. First off, no one is saying collectors are bad. Legal collectors following the law are fine. Whatever. Illegal collectors with threats and lies are not. And, obviously, you MUST have had a run in with Cash Call. Otherwise you wouldn't be freaking out so! So, my point is that, don't get on here and "bash" us and then tell us how awful Cash Call is. Do you think we don't realize that already? That's why we're here. And obviously you've gotten yourself caught up in a pdl or Cash Call themselves or you wouldn't be on this forum posting your opinion. So, in essence, you are in the same situation as we are.

cannr, this person is not even worth arguing with. I know it's tempting.......

sass, I know. Why don't I just shut up? LOL! :D