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help with payday loans in nj

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Posts: 4
Credits: 178.4
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Hi My name is Michele

I live in nj. I have payday loans out from internet.

ameriloan 250.00 already pd 225.00
tendollarpaydayloan.com 300 already pd 735
cashdirectexpress 300 already pd 198.00
loanshop 300.00 already pd 90
loanshop 300.00 already pd 90
xpresscash or genotha roth 300.00 already pd 360.00




SUEBEEHONEY70

Posts: 4590
Credits: 65464.3

Sub: #1 Hi Michele - Here is the law for NJ regarding payday lendingus
Tue, 06/12/2007 - 22:01

Hi Michele -
Here is the law for NJ regarding payday lendingust select your state),

http://www.debtconsolidationcare.com/paydayloan/explain-p dls-laws.html

Payday lending is PROHIBITED in your state.

I would pay the principal amount owed, plus the interest allowed by your state law, and then request to be marked paid in full, based on the fact that these loans are prohibited in your state. If you have already overpaid on any of them, you should start requesting to be marked paid in full right away.




msmith1968ty
Posts: 4
Credits: 178.4

Sub: #2 would pay the principal amount owed, plus the interest allowed b
Wed, 06/13/2007 - 15:28

would pay the principal amount owed, plus the interest allowed by your state law, i dont understand that the interest allowed what is 30% per year




SUEBEEHONEY70

Posts: 4590
Credits: 65464.3

Sub: #3 That would be 30% of your loan amount per year, unless your cont
Wed, 06/13/2007 - 15:36

That would be 30% of your loan amount per year, unless your contract (if there is one) with the lender specified a lower rate.

The law for NJ says "Consumer loan act applies but rates as agreed to by contract. N.J. Stat. Ann. tit. 17,???? 1 et seq. However, criminal law sets the usury cap at 30%. N.J. Stat. Ann. ???? 2C: 21-19" - meaning if the contract rate is 29.99% per year, you have to pay that, rather than the 30% allowed by the state - but if your contract states your interest rate is 500% per year, you only have to pay the 30% interest rate capped by your state.

(someone correct me if I'm wrong?)




2nband

Posts: 2282
Credits: 46918.776020618

Sub: #4 You have more than paid tendollarpayday and express cash. You d
Wed, 06/13/2007 - 15:43

You have more than paid tendollarpayday and express cash. You do not owe them anything else. I would almost venture to say that you should be entitled to some typr of refund on the tendollar one, but sometimes getting these places to give you one is another matter.




msmith1968ty
Posts: 4
Credits: 178.4

Sub: #5 Hi My name is Michele I live in nj. I have payday loans out
Wed, 06/13/2007 - 15:47

Hi My name is Michele

I live in nj. I have payday loans out from internet.

ameriloan 250.00 already pd 225.00
tendollarpaydayloan.com 300 already pd 735
cashdirectexpress 300 already pd 198.00
loanshop 300.00 already pd 90
loanshop 300.00 already pd 90
xpresscash or genotha roth 300.00 already pd 360.00
so for the tendollarpaydayloan i would be done.
xpresscash i would still owe like 30.00
ameriloan would be i still owe them 75.00 dollar
cashdirectexpress i would still owe 192.00
loan shop i would still owe 300.00 a piece
because i would have to pay the interest on the at 30 %




goudah2424

Posts: 7938
Credits: 122486.15

Sub: #6 NJ's laws are fairly weak in regards to payday loans . . . Since
Wed, 06/13/2007 - 15:58

NJ's laws are fairly weak in regards to payday loans . . . Since the laws refer specifically to check cashers, there are ways for companies to get around them. Several companies do the "fee" thing instead of charging "interest". So far NJ has let these companies skirt the laws . . . .

BTW - When calculating the 30% interest, you must remember that is for the whole year. You would only be paying for the amount of time between your pay periods. If it's 2 weeks, you would only be paying .011508% . . . Or you could take your loan amount, say $200. 200 * .30 = 60 So for the whole year you would only pay $60 in interest. You could divide that by 365. 60/365 = .164384, then times that by 14 (2 week pay period) .164384*14 = 2.301376 So is you were using the 30% cap, you would only owe $2.31 in interest.

But check with your banking dept and AG's office . . . . Most states do not consider these loans small loans and the rate cap does not apply to them. Most states will tell you that since these loans are prohibited you owe nothing in interest anyways.




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