How are unlicensed/illegal Payday loans able to operate?

I would think the government would be all over this. If a payday loan is giving out loans illegal how can they legally collect the money. Shouldn’t their be laws in place to go after these illegal payday loan companies. If a casino was unlicensed to operate then it would be shut down right away and huge fines would be issued along with possible prison time (Felony Charges.) As a result they would no longer be able to provide gambling services. Here is another example, lets say if an unlicensed attorney practices law, they most certainly will be facing felony charges because they have no business practicing law. Unlicensed payday providers are the same way, unlimited roll over fees, interest raging to 3000% APR rate, unauthorized debits even though account is paid in full, and the list goes on and on. Shouldn’t these companies be put out of business because if they are not licensed then they have no business giving out personal loans.

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This entry was posted on Wednesday, February 3rd, 2010 at 7:29 am and is filed under Payday-Loans. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

2 Responses to “How are unlicensed/illegal Payday loans able to operate?”

laughter_every_day on February 3rd, 2010 at 7:29 am

Licensing requirements vary by state. Some states have all sorts of requirements for any lender and other have almost none. My state does not license lenders and has no usury laws and so people are free to enter into a contract with exorbitant interest and all sorts of fees. The next state over prohibits a lot of those and regulates the interest and fees, but it is much harder to borrow money in that state because of those laws.
allende on February 3rd, 2010 at 7:29 am

find out which of your senators,city councilmen,congressmen,etc,,have been given election
campaign contributions by the payday loan,banking folks,then find out how much,and find out which dog is wagging whose tail. I think it’s a good bet these loan offices get free city labor to paint up,clean up,remove graffitti with stimulus money,,,,and tax breaks

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