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I was trying to get current on all of my bills and was unable to obtain a loan at a bank. I ended up getting three payday loans online for 300-350 each, and one storefront installment payday loan for $1000. I have to pay $1600 on the installment payday loan, which comes to $210 a pay for eight pays. The other three loans I am paying $90 each (every pay). This comes to approx. $500/pay. I am now behind on my utilities, mortgage, insurance, etc.

I have renewed three times on the small payday loans, and have only made one payment on the storefront loan. All are current.

Should I close my account out and just give my new number to the storefront company? And make payment arrangements with the others?

Are these loans legal in PA?

Check N Go - Storefront loan
Apple Cash - Online Loan
US Fast Cash - Online Loan
One Click Cash - Online Loan

Thank you for your help.

I was reading prior posts about PA residents and payday loans, and from what I understand, the three payday loans I have that are online, are to be regulated under the state of Delaware (lending state) and not PA. So I am stuck with paying this $90 interest each pay on each loan?

Also, since the one large payday loan is from a storefront operation in PA, and charges over 300 % interest, that maybe this is the one I can only repay the principle plus the max interest rate in PA?

I am so confused by all of this, and in need of help. I have to get these paid so I can make payments on my mortgage, car and utilities. Not to mention buy some food.

Sub: #1 posted on Mon, 07/24/2006 - 08:42

ldawn513 ldawn513

(Posts: 4 | Credits: 2.18)

In 1999 the Attorney General, Secretary of Banking and National Cash Advance (now Advance America) reached a settlement where storefronts could register as brokers for "bank-model" payday loans. Check & Go was not techincally a "payday lender" in Pennsylvania. It was a Credit Services Act loan broker acting on behalf of an out of state bank. (I forget which one worked with CNG. Advance America was with Bankwest; Dollar was with County Bank).

This arrangement continued until March 2006, when the FDIC forced banks out of the business. Under federal law, banks can make loans to borrowers in other states at their home state's interest rates, even if the rate is illegal in the borrower's state. By the way, the law still allows banks this power. The FDIC took the position that payday loans are so high-risk that banks making them were unnecessarily risking their depositors' money. So they put limits on the banks ability to make these loans that it became unprofitable to continue.

Bottom line - Any loans you got from CNG or another bank-model broker that were made before the end of March were legal (assuming the lending bank complied with the laws governing it) and can be enforced in Pennsylvania.

Sub: #2 posted on Mon, 07/24/2006 - 19:26


Get in touch with the licensing authority of your state and know if these loan companies are licensed there. They are also bound by the state laws to charge the permissible interests and fees on the principal amount.

Don't close your account before talking with the lenders. I believe that the account should only be closed when you can prove some illegal activity by your lenders in your account. At this point, they will hold it against you that you were trying to ignore their payments and closing the account is the first step towards this direction. Talk to your lenders and arrange some payment plans with them. If they are willing to work with you, things will turn towards the better direction. If I had been in your place, I would have done the following. Maybe, someone else with a better suggestion can help you out.

Sub: #3 posted on Mon, 07/24/2006 - 19:32

anthony anthony

(Posts: 455 | Credits: 96.33)

I contacted the Attorney General's office in PA and found out they told me PA does not regulate any payday loans. So I then called the department of Banking in Delaware and they have no cap on interest rates in PA. I have contacted US Fast Cash so far, and they will not work out a payment plan with me. I will try the others, but am not very optimistic.

I called DCC and am waiting on a call back. I called a credit counseling outfit here locally, and they do not work with payday lenders. I tried T & C, but was on hold forever, and I am calling from work, so I had to hang up.

I also wanted to mention that I got the three online loans in June, and the storefront Check N go loan in July 2006.

I am not giving up just yet. And I appreciate your all's help. Thanks again.

Sub: #4 posted on Mon, 07/24/2006 - 20:02

ldawn513 ldawn513

(Posts: 4 | Credits: 2.18)

Pennsylvania isn't going to offer much help on the internet loans. The AG will sympathize. If collectors abuse you, they'll even send out a form letter or two. But Pennsylvania's law on unsecured loans of $25,000 or less predates the internet by about 80 years. It only gives authority to the Banking Department to regulate lenders with physical operations in PA.

Note: This is different than the whole choice-of-law concept that a lot of internet lenders use. In that scenario, you could go back and forth for years without ever resolving whether the lender's state or the borrower's state controls the loan. Pennsylvania itself has conceded that it has no power to regulate unsecured loans made by lenders that are licensed and operating outside of PA.

I don't know if the moderator will let the link stay in or not, but just in case: &q=547781&ba nkingNav=|32148|32179|

Otherwise go to the Secretary of Banking's website and read the interpretive letters (under the "laws & regulation") regarding the Consumer Discount Company Act. In June 2005, and on several prior occasions, the Department has made the point that its power stops at the border. Only if the out-of-state lender is unlicensed in its home state, i.e., operating without any regulation, can the Department take action.

Sub: #5 posted on Mon, 07/24/2006 - 20:14


I want to thank everyone for their help. I have contacted T & C, and should begin getting my life back shortly. What a relief!

Thanks again for everyone's insight into this PDL mess. Much appreciated.


Sub: #6 posted on Wed, 07/26/2006 - 16:39

ldawn513 ldawn513

(Posts: 4 | Credits: 2.18)

Marcia Brady's Love Chile, will you please consider joining our community. It looks like you have a wealth of information to share.


Sub: #7 posted on Wed, 07/26/2006 - 16:45

polly polly

(Posts: 1709 | Credits: 253.2)

Please let me know what this stands for I also have several loans and I want to pay them back, but with the interest it is nearly impossible.

Sub: #8 posted on Thu, 08/02/2007 - 23:14


Wayis, what state are you in? Who are your loans from? Are they storefront or internet? Please list the company, how much you originally borrowed, and how much you have paid back so far and we will be able to give you some advice.

Sub: #9 posted on Fri, 08/03/2007 - 02:11

Sassnlucy Sassnlucy
(Posts: 2697 | Credits: 317.14)

I am from the state of PA, too. Some of the PDL's I am trying to deal with is PayDayOk,One Click Cash, Nationwide ( aka...Ambassador Collections, and a company called Cash Call. Any advice on how to deal with this? Thanks.

Sub: #10 posted on Mon, 08/20/2007 - 01:05

sdchargers_63 sdchargers_63

(Posts: 1798 | Credits: 179.17)

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