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I want to know if Sagamore, United Cash Loans, Rapid Cash Management, and 500 Fast Cash, are legal in PA and has anyone dealt with them.




Hello and welcome to the community!! I am moving this to the payday loan section so it will receive more attention.

Sub: #1 posted on Mon, 07/21/2008 - 22:25

Shazzers Shazzers
Moderators Cum Industry Expert
(Posts: 17342 | Credits: 1592.85)

It's a given that someone, if not many of us, have dealt with all of these slugs. I know there is a loophole in the PA law so I am hoping that someone will post and interpret those laws for you. Hang tight.

Sub: #2 posted on Mon, 07/21/2008 - 22:36

llw1995 llw1995

(Posts: 1422 | Credits: 149.03)

Emails to and from PA Banking Dept

[quote]Hello,

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?

Thanks!

Response:

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)state.pa.us | www.banking.state.pa.us

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]

Sub: #3 posted on Mon, 07/21/2008 - 22:53

goudah2424 goudah2424

(Posts: 7936 | Credits: 1224.91)

Thank you goudah. Those PA laws creep me out!

Sub: #4 posted on Mon, 07/21/2008 - 22:56

llw1995 llw1995

(Posts: 1422 | Credits: 149.03)

You can always just copy and paste what is above and put it in quotes . . . . . That way you don't have to worry about rewording anything. :D

Sub: #5 posted on Mon, 07/21/2008 - 22:59

goudah2424 goudah2424

(Posts: 7936 | Credits: 1224.91)

Thanks again! Did you get my latest pm?

Sub: #6 posted on Mon, 07/21/2008 - 23:01

llw1995 llw1995

(Posts: 1422 | Credits: 149.03)

Yeah, I think so. I replied to it. I've got 2 pm's to you in my outbox . . . . Is your sentbox full?

Sub: #7 posted on Mon, 07/21/2008 - 23:11

goudah2424 goudah2424

(Posts: 7936 | Credits: 1224.91)

Thank you for the advice, I contacted my banks loss management and they sent me the form to fill out, and I did and sent it back to them, I also am going to tomorrow to close out my account. I cannot believe that these people can do this, if I would have known about this before I did the pdl loans I would have never done it, they are such a scam.

Sub: #8 posted on Mon, 07/21/2008 - 23:42

Unregistered


Not to worry. . . we all have said the same thing. Closing your account will at least keep your money safe. Keep us posted.

Sub: #9 posted on Tue, 07/22/2008 - 06:01

llw1995 llw1995

(Posts: 1422 | Credits: 149.03)

Be sure that you read this information before closing your bank account:

http://www.debtconsolidationcare.com/paydayloan/close-acc ount.html

Sub: #10 posted on Tue, 07/22/2008 - 08:18

alias1958 alias1958

(Posts: 1230 | Credits: 79.88)

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