Actually no in most cases ... in many states with relatively strong payday loan laws, banks from states without such protections essentially prostitute their banking charters to the payday lenders, who pay the banks a small commission for each contract written using the bank as the putative lender, then pocket the interest on principal they themselves (not the bank) put up. In the states with really strong payday loan laws a stop has been put to this practice as well. New York, North Carolina and now West Virginia, I believe, have accomplished this difficult feat. The Center for Responsible Lending can be Googled up and you'll learn a lot. Historically the legislative tide against semi-legitimate loansharking has ebbed and flowed ... there were consumer reforms in the early part of the 20th century, then again in the '70s, and now it's gathering steam again.
What are normal fees for PDLs? This thread, and in paticular the last few posts, have piqued my curiosity; what does it "cost" for an average PDL? Let's say I "borrow" $100 on a Monday, until that Thursday or Friday, my cost (on average) would be......?
http://www.mypaydayloan.com/apr.htm http://www.paydayone.com/modules/state/states.aspx Of course it varies from state to state, but as a quick example see above.
WOW! WOW! WOW! Unbelievable! I can't imagine anyone would do this! But I guess the nature of the business also includes the "ton of PDL accounts" you mentioned getting....
Thank you for all the valuable information. I guess the consensus is that they can't really do anything to collect on this since it's past the SOL? I can just send a certified letter stating they should never contact me again?
