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I am from Pennsylvania. I know payday loans in PA are illegal. I just want to verify that the following 2 payday loans are illegal in PA.

I have a couple payday loans from 123CashMart and 123Money Help. In their Disclosures they put the following

12.) 123MoneyHelp is a Delaware based Licensed Lender. If you apply, we will receive and process your application here, the same as if you submitted it to us in person at our office. We only make loans in Delaware. If we approve your application, the funds will be deposited from our account here in Delaware. Our loans are governed by Delaware State law. We are not licensed, registered, or authorized to do business in any other state. Delaware law governing consumer loan agreements may be different from the laws of the state where you reside. If you do not want to enter into a loan agreement subject to Delaware law, you should apply for this loan at a lender located in the state where you live.

the governing law means nothing.your state laws prevail.meaning they are illegal.again that is meaningless.

Sub: #1 posted on Fri, 08/02/2013 - 22:22

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

Now they are going on about truth in lending laws...

You are legally responsible for the loan and we will expect payment on 08/09/2013. You can revoke the payments and that is fine but when by law we follow through with actions which are granted to us by our truth in lending disclosure that you signed please do not be alarmed. You are not the only one who has attempted to not repay from another state. So we will follow suit with garnishing your wages if the loan is not repaid in the timely manner that was discussed and signed by you. Please do take the time to sit with a lawyer and discuss the contract that you signed. An educated consumer should be aware of everything that we are allowed to do in order to receive our funds.

Best Regards,

Sub: #2 posted on Sat, 08/03/2013 - 02:25

morozov morozov

(Posts: 9 | Credits: 1.18)

How should I respond to their email above?

Sub: #3 posted on Sat, 08/03/2013 - 18:22



Does anyone know how I should respond to their last communication above?

Sub: #4 posted on Sun, 08/04/2013 - 21:58


respond this way:

don't try that crap with is the lender is legal in PA so it is up to you to follow the laws of the state of the borrower,no the if all you are going to do is reach for shit.i'm through engaging in this.complaints to the PA AG,as well as the FTC will be filed.again i'm done with you and your runaround.btw i revoked any wage assignments so you won't garnish jack.

respond just like that.

Sub: #5 posted on Mon, 08/05/2013 - 18:11

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

LOL. They're going to have a tough time garnishing your wages, considering that wages can't be garnished for a loan without a court order in PA unless it's a defaulted student loan.

Sub: #6 posted on Mon, 08/05/2013 - 18:22

wearetheborg wearetheborg

(Posts: 23 | Credits: 4.28)

Thank you very much for the help!

Sub: #7 posted on Mon, 08/05/2013 - 18:40

morozov morozov

(Posts: 9 | Credits: 1.18)

actually PA is non-granishment.meaning unless it's a student loan,tax debt,or child support no court will order garnishment.i forgot to mention that.

Sub: #8 posted on Mon, 08/05/2013 - 19:41

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

Dear 123whatever...

You freely admit to being unlicensed in my state of PA, a state where payday loans are PROHIBITED by LAW!! You are going to have a hard time recovering any funds as A) PA is a nongarnishemnt state and B) the loan was issued in violation of PA state law. So do yourself a favor...mark my account as PAID IN FULL. Do not contact me by any means other than to inform me that my loan has a zero balance. Maybe it is YOUR company that needs to sit with an attorney and learn the laws.

Govern yourself accordingly

This is an attempt to communicate with an illegal payday loan lender and any information will be used for that purpose.

Sub: #9 posted on Mon, 08/05/2013 - 20:11

Moderators Cum Industry Expert
(Posts: 17214 | Credits: 4746.7)

Thanks. is spouting on about how this is an installment loan not a payday loan. I looked over PA state laws and the cap is 6% on installment loans also. The only provision I found was below... Now 123Moneyhelp is Delaware based... but looks like the provision below is ONLY for National Banks???

The Pennsylvania courts have held that under the National Bank Act, at 12 U.S.C. ยง 85, a national bank operating in Pennsylvania can charge interest rates higher than permitted by Pennsylvania law, if that bank is authorized to charge those rates by the laws of the state in which it is based. Bank One, Columbus, N.A. v. Mazaika, In re Citibank (South Dakota) credit card litigation, 545 Pa. 115, 680 A.2d. 845 (1996). In other words, national banks based in South Dakota or Delaware, for instance, are governed by the interest rate limitations of their home states even when doing business in Pennsylvania.

Sub: #10 posted on Tue, 08/06/2013 - 02:17

morozov morozov

(Posts: 9 | Credits: 1.18)

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