Internet Payday Loans & Laws

Internet Payday loan laws. Internet Payday loan legislation. The Internet payday loan model does not have specific payday loan safe-harbor legislation.

There is substantial controversy regarding the offering of payday loans and cash advances via the Internet. Generally speaking, for every 100 companies you find on the Internet offering a payday loan, less than 5 actually fund payday loans. The majority are simply "marketers" who have expertise in driving traffic (consumers) to web sites, securing a payday loan application, and selling the applications for as much as $55 each to a payday loan funding company.

We receive phone calls and emails every day asking us if it is necessary to secure a "license" to offer payday loans via the Internet. This is a very complicated question. We offer a 125 page "Payday Loan Internet Report in which we thoroughly discuss this very issue. Suffice it to say, there is no case law that clearly discusses this issue.

Some Internet payday loan operators get a license in one or more states, offer residents of those states a payday loan product that meets the statutes of those states and sell the remaining applications they receive to other payday loan operators. Others organize IBC's (International Business Corporations) offshore, and fund payday loans from residents of any state, province, or country. Other payday loan operators get a license in one state, place a disclosure on their web site stating "any consumer desiring a payday loan from us agrees to abide by the rules and regulations of "Name Your State/Province".

Some states (Colorado & New York) take a very aggressive stance against operators funding loans to residents of their state/province when the operator lacks a proper state/province issued license. Generally, the Internet operators find themselves in trouble when they cause grief for the regulators. The fact is, most regulators are over-worked and understaffed. If you service your customer properly and treat them fairly with dignity and respect, you probably will not experience the wrath of a regulator.

Again, we THOROUGHLY analyze, discuss, and enable prospective payday loan Internet operators to successfully operate a web site(s) offering an Internet payday loan product. For more information about our report Payday Loan Internet Report.

For a thorough discussion of the payday loan industry and access to our payday loan training materials, we recommend you proceed to PaydayLoanIndustry.com

Payday Loan Laws

Internet Payday Loans & Laws