Consumer complaint received 2021-10-31
Product: Payday loan, title loan, or personal loan — Payday loan
Issue: Charged fees or interest you didn't expect — 
Company: LDF Holdings, LLC (PA)

I attempted to sign up with this company some months ago and they approved me but apparently, they are illegal in my state of Pennsylvania. They charge a really high interest and I was under the impression that I would be held to the maximum interest rate in my state- not their maximum ( especially since the mere fact of them lending me money is illegal ). I feel taken advantage of, ripped off ( especially since ive submitted a lot of interest - high enough to cover the initial loan many times over ). I need assistance. And they are attempting to hire a collection agency. 

Any help would be appreciated. Attached is the email that I have received from Pennsylvania Department of Banking and Securities. 

READ BELOW XXXX XXXX, Thank you for your comments regarding the referenced entity that is not licensed in Pennsylvania. 

It is our understanding that Niswi, LLC dba LenduMo is a commercial enterprise and instrumentality of the XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, a federally recognized sovereign XXXX nation, which operates within the boundaries of their reservation in XXXX XXXX XXXX, WI. If you are aware of physical location in Pennsylvania, however, we would appreciate being informed of the location. 

If you have documentation from Niswi LLC dba LenduMo ( loan contract, bank statements showing the payments being withdrawn from your account, etc. ) we ask that you forward the documentation to the Department to keep on file. You may mail, fax, or email the documentation. The Departments contact information is as follows : Pennsylvania Department of Banking and Securities Attn : Consumer Services Office XXXX XXXX XXXX XXXX, Suite XXXX XXXX, PA XXXX Fax : ( XXXX ) XXXX Email : XXXX Pennsylvania XXXXaw does not allow high interest consumer loans, even over the internet. Some loans initiated over the internet, like those made by legitimate XXXX Tribes or companies located out of the country, raise questions of federal or international law that are better addressed by the federal government. We are very interested in your complaint and will keep it on record for our future use, but we ask that you also contact the Consumer Financial Protection Bureau ( CFPB ). That federal agency has greater authority in this complicated area of conflicting law and they have informed us that they are taking complaints at this time. The CFPB XXXX also be able to give you guidance under the federal Fair Debt Collection Practices Act. You can contact the CFPB at XXXX. 


In the meantime, Pennsylvania law obligates a borrower to pay back the principal amount of the loan, but no more than 6 % interest, if the lender is unlicensed in Pennsylvania. Many consumers have sent letters advising the lender that they believe the loan exceeds legal limits in Pennsylvania, and have had some success controlling the situation by stopping the automated payments from their bank accounts. You can consult with your bank about the best way to do that. You also have rights under Pennsylvanias Loan Interest and Protection Law to sue the lender for three times the amount of any interest you paid in excess of 6 %, so you may want to contact an attorney.

Thank you for contacting the Pennsylvania Department of Banking and Securities. We hope you find this information helpful and look forward to receiving documentation from you. 

XXXX XXXX | Consumer Services Specialist