Is this loan legal?

[Gohawks24]

What is the name of your state (only U.S. law)? Florida

I believe my cousin may be involved in a predatory loan.

My cousin took out a payday loan from a company called dashofcash and i am having a hard time seeing if this loan is even legal.

In our state I am seeing that the max interest allowed is 18% on a personal loan. The terms of the loan I am seeing are they wires him $800 and he has $1040 due in 2 weeks!

The company appears to be based in Quebec Canada. How legally binding is this loan? He gave them his SS number, and bank details.

 

[justalayman]

So what is the actual interest charged? Fees are not interest. If the interest rate exceeds the max, then it’s illlegal. If the fees are what is costing so much, that’s a different issue.

 

[justalayman]

Also, in Florida a payday loan falls under a deferred presentment loan. That’s where you write a check for a future date. Did he issue them a check?

It doesn’t matter. Given the amount it does not fall under deferred presentment loans.

But there is another possibility; Florida Licenses consumer finance companies. They are not limited to the 18% in all circumstances.

 

[Gohawks24]

Hello the entire process is online through a company called dashofcash. From what I can find they are based in Quebec Canada. He did not pre pay a check or anything.

 

[Gohawks24]

Looking at the document its stating an apr of 461%.

 

[Gohawks24]

It is being labeled as a finance charge and not interest.

 

[Taxing Matters]

What is the name of your state (only U.S. law)? Florida

I believe my cousin may be involved in a predatory loan.

My cousin took out a payday loan from a company called dashofcash and i am having a hard time seeing if this loan is even legal.

In our state I am seeing that the max interest allowed is 18% on a personal loan. The terms of the loan I am seeing are they wires him $800 and he has $1040 due in 2 weeks!

The company appears to be based in Quebec Canada. How legally binding is this loan? He gave them his SS number, and bank details.

How did your cousin find this Quebec loan company in the first place? If he did an internet search for loans, found the company from his search, and contacted the company through its web site to initiate the loan process then Florida likely has no jurisdiction over this company and indeed Florida law probably does not apply. Instead, it would be Quebec law that would likely apply.

 

[Gohawks24]

This loan appears to be illegal in Quebec as well! Quebec caps yearly apr to 35%, so this loan would be illegal there as well. What would the impact be if he just paid the principal sum back could this company do anything to his credit or to him?

 

[justalayman]

This loan appears to be illegal in Quebec as well! Quebec caps yearly apr to 35%, so this loan would be illegal there as well. What would the impact be if he just paid the principal sum back could this company do anything to his credit or to him?

It would be solely up to the loan company. Nobody but them can tell you what they would consider doing.

Can they do something to his credit report? Nobdody here knows if they even report to the credit reporting agencies. If they do report, then yes, they could report it as a delinquent account.