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Desperate for PDL help in PA

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Posts: 91
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I need help and info to fight these loan sharks that call themselves online loan companies. I want to deal with them or go after them but need to know where I stand.
I have a consumer lawyer close to where I live-would it be worth going to see him? He supposely sues payday loan companies.

I have loans with the following:
My Cash Now-470.
Pay Day One-650.
EZ Payday-300.
Cashnet USA-500.

I live in PA.

I sent faxes to each one of them when I closed my checking account telling them that they no longer had access to my money and that they could contact me via USPS regarding my payments to them. So far I have received nothing and no mailing addresses-it's been 2 months since I closed my account. I will not send them anything without a real postal address. I also have fax confirmations so I can prove I contacted them.
Cashnet USA has also called my reference on more than one occasion and said they were from CNU which to me is false representation. I also told them in my faxed letter that they were not to contact me at work or at my private, unlisted number at home and that the only way I would deal with them was via mail, and they still have called my work and home phones.
I would appreciate any input anyone has.

one question

1)how much paid back to each total

one thing about PA pdl laws is if the pdl has a license anywhere those laws do apply.cashnet usa is legal and you should go about working with them.the others i don't know if
they are licensed or not.someone else should be along with that
info shortly.

Sub: #1 posted on Mon, 07/28/2008 - 23:34

paulmergel paulmergel
Moderators Cum Industry Expert
(Posts: 15511 | Credits: 1357.03)

I haven't paid anything so far.
I will not send any money without a real mailing address.
I told them I will send them as much as I can, as often as I can.

Sub: #2 posted on Mon, 07/28/2008 - 23:53

kak213 kak213

(Posts: 91 | Credits: 21.12)

In PA, PDLs are prohibited. Have a look at the legalities related to PDLs in PA: -
Pennsylvania State Information

Legal Status: Prohibited

Check cashers are specifically prohibited from making payday loans under Check Cashing Licensing Act of 1998, ???? 505(a). Otherwise, consumer discount company act applies. 7 Pa. Cons. Stat. Ann. ???? 6201 et seq.

Small Loan Rate Cap
$9.50 per $100 per year discount or 24% per year

Where to Complain, Get Information:
Regulator: Pennsylvania Department of Banking
Address: Market Square Plaza, 17 N. Second Street Harrisburg PA 17101
Phone: (717) 214-8343
Fax: (717) 787-8773
Regulatory Contact: Jim Keiser Administrator of Non-Depository Institutions

I think you should make a complaint to the regulator

Sub: #3 posted on Tue, 07/29/2008 - 13:40

phoenix phoenix
(Posts: 1445 | Credits: 275.44)

In Pa if a Pay day lender is licensed ANYWHERE it is legal in PA and the laws of the licemsing state must be followed. Please be certain of info before you pass it along. people can get into worse trouble if misinformation is given out

Sub: #4 posted on Tue, 07/29/2008 - 17:27


I already called the Dept of Banking in PA and was told they are still working on getting payday loans outlawed in PA but as of now, consumers don't have much protection. The only hope is to find out that possibly the company you are dealing with is operating illegally.

Sub: #5 posted on Tue, 07/29/2008 - 17:42

kak213 kak213

(Posts: 91 | Credits: 21.12)

That is correct kak - If they are not licensed in any state, then they aren't legal to lend.

The ones that are licensed by another state would need to follow the laws of the state they are licensed in.

Sub: #6 posted on Tue, 07/29/2008 - 19:30

goudah2424 goudah2424

(Posts: 7936 | Credits: 1224.94)

And the guest is correct - Misinformation can cause huge trouble. If someone thinks a loan is illegal and it's not, that can lead to big trouble.

[quote]Emails to and from PA Banking Dept


I have a question about payday loans in Pennsylvania. Does the small loan rate cap of $9.50 per $100 per year discount or 24% per year apply to these loans? I took out a few on the internet and am trying to figure out how much I legally need to pay. For instance on a $200 loan would I be legally responsible for paying back only $248?



Dear Ms.:

The 9.5 discount and the 24 % simple interest refer to calculations that can be used by companies that are operating in Pennsylvania and are licensed under Pennsylvania????????s Consumer Discount Company Act. With a number of exceptions, a lender that is located inside of Pennsylvania and who does not have any special lending authority (i.e., a special license or charter) who is making smaller loans not secured by real estate can only charge interest at a rate of 6% simple.

A lender that does not have a physical presence in Pennsylvania but who has lending authority from some other state can generally charge the interest rate and finance charges allowed by that other state.

The Department may or may not be reviewing this policy and I would not count on this e-mail as an interpretive opinion before starting any lending or business operations.

James Keiser | Administrator Non-Depository Institutions

17 North Second Street, 13th Floor | Hbg PA 17101
Phone: 717.783.8242 | Fax: 717.787.8773
jkeiser(at) |

What does this mean?

There are no storefronts in PA. They are illegal.

Internet lenders can lend legally to PA residents as long as they are licensed in another state. They would need to follow the laws of the state in which they are licensed.[/quote]

The above quoted info is MY info, but Admin here seems to think everything needs to be in quotes now, even if it's your own words . . . . :twisted:

Sub: #7 posted on Tue, 07/29/2008 - 19:31

goudah2424 goudah2424

(Posts: 7936 | Credits: 1224.94)

One thing I always got when arguing with these people was about how interest rates under state laws don't matter becuase they are 'extension fees' ...does that hold up? they pile hundreds and thousands of dollars in these fees up all the the court of law would that be allowed?

Sub: #8 posted on Tue, 07/29/2008 - 20:15


Does anyone have any info on the companies I listed?
I'm hearing that Cashnet USA is legal so far.
I am checking out my cash now with the people in the state of Tn. This lender is physically located in Tn yet collecting it's money under the name of Credit protection Depot in the state of Nevada. Neither state seems to have a license under either name.
Does anyone have any info on the others?

Sub: #9 posted on Tue, 07/29/2008 - 20:20

kak213 kak213

(Posts: 91 | Credits: 21.12)

no it wouldn't hold up,in fact being illegal they cannot charge
those rollovers at all.that is why they collect like they do they
don't have a leg to stand on and count on intimidation and the
consumer not knowing there rights.

this was in response to extension fees question.

Sub: #10 posted on Tue, 07/29/2008 - 20:22

paulmergel paulmergel
Moderators Cum Industry Expert
(Posts: 15511 | Credits: 1357.03)

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