State puts brakes on online lender - Coeur d'Alene Press: Idaho News

State puts brakes on online lender

Utah-based AAA Payday Advance targeted

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Posted: Wednesday, November 13, 2013 12:00 am

A cease-and-desist order has been issued against Utah-based AAA Payday Advance.

The Idaho Department of Finance reports that the company is an unlicensed lender offering to make payday loans in Idaho over the Internet.

Idaho law establishes that a payday loan made in violation of Idaho's licensing requirements is void, uncollectable and unenforceable, said Gavin Gee, director of the state finance department.

"The 2013 Idaho Legislature enhanced the department's ability to address unlawful consumer lending in Idaho, making it illegal for a lender to advertise or solicit to make consumer loans in Idaho, including payday loans, if the lender is not first licensed to make those loans," Gee said.

He asked Idaho borrowers who have borrowed from AAA-Payday to contact the Idaho Department of Finance.

"We're interested in furthering our investigation to learn the breadth of lending in Idaho undertaken by unlicensed Internet payday lenders," Gee said.

The cease-and-desist order requires AAA-Payday to immediately stop offering or soliciting to make payday loans in Idaho.

Borrowers who may be considering a payday loan are urged to become aware of their rights and remedies, and consider all choices and alternatives before entering into a contract. For this purpose, the department has published a brochure entitled, "Payday Loans in Idaho, a Borrower's Rights and Remedies," which is available on the Department of Finance website, Printed copies are available free of charge by contacting the department at 332-8000 or toll-free in Idaho at 1-888-346-3378.

"My advice is to steer clear of any payday lender that ignores state licensing laws," Gee said.

To verify whether a payday lender is licensed in Idaho, call or check the department's website.

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1 comment:

  • witsend posted at 3:01 pm on Wed, Nov 13, 2013.

    witsend Posts: 3

    This would be just one online lender. There are countless more that people go to, because this does nothing to address the demand. It's like whack-a-mole. The best way to address this problem is to help the people that need it directly, with financial literacy.

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