In response to #5, the Payday Loan place would be an OC, so the FDCPA would not apply anyway. However, even if it did, you can waive most rights by contract. Part of a payday loan contract is "if you do not pay this loan by x, we have the right to cash the check you provided us a security interest in." Think of the check as kind of a mortgage. When you "default" on the payday loan, they have the right to "foreclose" on the check you gave them. Never forget, just because you a right does not mean you cannot waive them!
Wow NH could give a rats patooey about consumers. My states AG is useless too, you file a complaint and they "check into it" and file the complaint. I can't wait to move to Florida.
Several Payday Lenders have been subject to class-actions for this very offense. Indiana has gotten tough, Illinois right behind. August 2001, the Indiana Supreme Court ruled that the typical "payday loan" made by Indiana lenders at more than 36% interest is unlawful under the Indiana Uniform Consumer Credit Code and the Indiana Loansharking Statute. The argument is one of the law's intent- that since the federal law was not written to address short-term ( 1-2 weeks) loans, the state law applies directly, while the federal law is ambiguous. While these Indiana and Illinois state supreme court rulings may be challenged and possibly overturned, as of yet, they have not. Radi8
The lawyer in that case made a brillant argument. I do not see a payday loan challenging it in the US Supreme Court over $300, so they may catch on. Do you have a cite to those cases?
Payday lenders acting as a 3rd party for an associated bank are (by treasury dept opinion )third party collectors when they collect, hence subject to the FDCPA. http://www.occ.treas.gov/ftp/advisory/2000-10.txt "Fair Debt Collection Practices Act (FDCPA) and Federal Trade Commission Act (FTC Act): If a bank engages in payday lending through an arrangement with a third party, and the third party regularly collects defaulted debts on behalf of the bank, the third party would be subject to the provisions of the FDCPA. Although the bank itself may not be subject to the FDCPA, it nevertheless faces significant reputation risk-and potential legal risk for approving or assisting in an unfair or deceptive trade practice in violation of the FTC Act-if the third party violates the FDCPA and engages in deception, harassment, or threats in the collection of the bank's loans." Radi8
What I have is from a conversation with the firm that filed the lawsuits. You might wish to contact them for specifics: EDELMAN, COMBS & LATTURNER, LLC 120 S. LaSalle Street, 18th floor Chicago, Illinois 60603-3403 (312) 739-4200 (800) 644-4673 (312) 419-0379 (FAX) Email: edcombs@aol.com Radi8
