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My husband has (2) internet payday loans; one from VIP Loan and the other from Fast e-Funds. Are both of these illegal in AL - GRAND BAY?

Thank you.

Dawn




Both the payday loan companies are illegal in AL. Ask your husband to send the principal amount via money order to the payday loan company.


Sub: #1 posted on Tue, 04/16/2013 - 08:25

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Actually there is a little more to it than that --

Licensing Requirements: Online lenders must be licensed in Alabama.


I doubt that either are since:

VIP is offshore - Charlestown, Nevis West Indies

Fast EFunds - can't tell from their website but pretty sure also not licensed to lend in AL.. Check below....


Alabama Payday Loan Laws: State Legal Status

Payday loan lending is considered legal in the State of Alabama. A payday loan company is guided by the payday loan lending laws applicable in Alabama.


Loan Specifications:

Maximun Amount of Loan - $500

Term of Loan - 10 to 31 days

Maximum Rate of Finance and Fees- 17.50%; 3% per month after default

Finance Charge for $100 loan for a 14 day period - $17.50

APR for $100 loan for a 14 day period - 456.25%


Debt Limits:

Maximum Number of outstanding loans permitted at a time - None (A payday loan company can lend an amount of $500 at one time)

Permissible number of Rollovers - 1 (rollover)

Cooling-off period - Next business day after repayment of two continuous loans have been done

Repayment Plan - Yes


Limits of Collection:

Collection Fees Amount - a) One NSF fee of $30; b) Court Costs; c) Upto 15% fees (face amount of the check) of a reasonable attorney

Criminal Action - Prohibited (A collection agency cannot file any criminal action against a payday loan borrower until and unless the check gets returned due to closed account)


Here is where you can check to see if they are licensed to lend in AL:

Regulator - Alabama Banking Department - http://www.banking.alabama.gov/

Address - P.O. Box 4600 Montgomery AL 36103

Phone - (334) 242-3452


If you find both are unlicensed to lend in AL:

Follow this link on how to deal with..
http://www.debtconsolidationcare.com/paydayloan/dealingwi th-illegallende...


Sub: #2 posted on Tue, 04/16/2013 - 18:36

HelpinAZ HelpinAZ
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