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Text from a case about pay day loans:

They are legally not governed by where you live but by where the bank is located! This changes everything...

"Under the legal doctrine of interest-rate exportation, established by Marquette Nat. Bank v. First of Omaha Corp. 439 U.S. 299 (1978), the loan is governed by the laws of the state where the bank is chartered. This is the same doctrine that allows credit card issuers based in South Dakota and Delaware — states that abolished their usury laws — to offer credit cards nationwide."

Any advice or comments?

What I found on the case looks as if it is about credit cards not payday loans.. ???? Maybe I read it wrong. s/439/299/


Sub: #1 posted on Fri, 07/04/2008 - 11:59

jennifer_bailey75 jennifer_bailey75

(Posts: 154 | Credits: 19.82)

That information is incorrect. PDLs are not governed by banks. Those are installment loans.

Jen, you are right that information is about credit cards.

Sub: #2 posted on Fri, 07/04/2008 - 17:10

Cool_Abyss Cool_Abyss
(Posts: 2936 | Credits: 173.61)

i read it,wonder who the troll works for?

Sub: #3 posted on Fri, 07/04/2008 - 19:14

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

technically this could apply to a bank in the direct pdl business, but that i s very unlikely since the federal reserve has issued regulations against that

Sub: #4 posted on Fri, 07/04/2008 - 22:50

jj jj
(Posts: 1057 | Credits: 107.78)

JJ is correct - This would only apply to pdl's backed by a bank. This is why installment loans with super high interest are legal.

PDL's are not backed by a bank anymore . . . . . So this wouldn't apply.

Sub: #5 posted on Mon, 07/07/2008 - 19:27

goudah2424 goudah2424

(Posts: 7936 | Credits: 1224.93)

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