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FCBA and EFTA laws: Protection from loss of credit cards



The impact or shock of a credit card lost or stolen can be definitely minimized with FCBA & EFTA. FCBA (Fair credit billing act) and EFTA (Electronic fund transfer act) are laws implemented to help you on occasions when you misplace your credit card or when it gets stolen.

The questions that arouse in our minds are:

  • What is the punishment for it?
  • Will I have to pay heavily for it?
  • Will I be held responsible for the unauthorized use?

Fraudulent Transfers (EFTA) on Debit Card Loss or ATM card:

Your liability under the federal law for unauthorized exercise of your debit card or an ATM card depends on how quickly you report the loss. If you report on the loss of your debit card or ATM card, before its use without your permission, the EFTA says that the card issuer cannot hold you responsible for any unauthorized transfer. The law states that you will be charged only $50 for unauthorized use of your credit card or ATM card, but that happens only if you report the loss before your credit cards are utilized to obtain cash. Moreover, if you lose your credit card number only and not the card itself, then you will have no financial obligation for the unauthorized use.

Nowadays almost every second person is seen to use a Credit card or an ATM card. With an increase in the use of plastic money, the rate of credit card loss has also increased.

When a person undergoes a loss or a theft of his credit or ATM card he should do the following:

  • Report the loss or theft of your credit cards, ATM or debit cards to the card issuers as quickly as possible.
  • Many companies have toll-free numbers and 24-hour service to deal with such emergencies. Avail the services of such companies.
  • It is a good idea to follow up your phone calls with a letter. Include the account number, when you notice your card is missing and also the date when you first report the loss.
  • You also may want to check your homeowner's insurance policy to see if it covers your liability for card thefts. If not, some insurance companies will allow you to change your policy to include this protection.

If you are under financial pressure, our experts will help you to consolidate your debts and lead a debt free life. Debt consolidation is the best way to get rid of your debts and we are the experts in this field. Fill our free quote to have an understanding of all the options and allow us to take care of your debt burdens.



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Send message to kawgirl23
Sub: #1 FCBA and EFTA laws: Protection from loss of credit cards
Replied on 10-08-2008, 05:58 PM
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I sent the following email to Cashnet USA -

Also,



Quote:
I hereby revoke any and all ACH authorizations with your company from debiting any of my personal accounts, per Federal law, Regulation E Section 205.10 Preauthorized transfers. I have closed my account with the Wachovia to protect my interest in this matter, per instructions from The Maryland Department of Finance. I also revoke any and all arbitration agreements and wage assignments I may or may not have signed with your company, I no longer authorize you, your company, or your affiliates to attach any part of my wages or contact my employer for your collection purposes. I have notified my employer about this matter so any attempts to do so on your part will be rejected.



Thank you for your prompt attention to this matter.






--------------------------------------------------------------------------------

Sent: Wednesday, October 08, 2008 11:49 AM
To: 'support@cashnetusa.com'
Subject: Loan #24629458
Importance: High



Due to some illegal activity on my checking account with Wachovia, I had to close my account. My balance with you is $494.51. Can you please provide me an address where I can mail payments to you? Also, I will not be able to pay the full amount so can I please be set up with an EPP? Thank you and I look forward to hearing from you.
And this is the response I got from them:

Quote:
At CashNetUSA, we understand how important it is to our customers to have access to payday advance funds as soon as possible after an advance is approved. That's why we fund our advances through an electronic funds transfer provided by the automated clearing house ('ACH') network. We also provide for repayment of advances via ACH. Because our advances are single payment advances (that is, we advance a sum of money that is to be repaid in a lump sum), we are permitted to require ACH repayment in accordance with the Federal Electronic Funds Transfer Act ('EFTA').

Under the EFTA, a lender cannot require a consumer to repay a loan by means of preauthorized electronic funds transfers as a condition to approving the consumer’s loan. The term “preauthorized electronic funds transfer” is narrowly defined by the EFTA to mean “an electronic funds transfer authorized to recur at substantially regular intervals.” As explained by the Federal Reserve Staff in its official commentary to the EFTA, “Creditors may not require repayment of loans by electronic means on a preauthorized, recurring basis.” 12 C.F.R. 205, Supplement I – Official Staff Commentary, at 10(e) (1) (Loan Payments). As a one-time payment, the repayment of a CashNetUSA advance is not encompassed by the EFTA’s definition of “preauthorized electronic funds transfer,” and is therefore permitted under the EFTA.

If you have any questions or concerns, our customer support team is available 24 hours a day, seven days a week to help answer all your questions via phone, email or online chat."
What does this mean? It doesn't answer anything I ask of them.

Sub: #2
Replied on 10-08-2008, 07:32 PM
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Technically the EFTA only allows you to revoke ACH authorization on "recurring" payments, like a gym membership. It's not clear if the refinances built into most payday loans fit the definition of "recurring." CNUSA takes the position that they aren't and they notify you of this in writing.

Bear in mind that CashNetUSA is a legal lender, meaning they get licensed everywhere they make loans, unlike most internet lenders. Unless you're planning to file bankruptcy, you should contact them to make a payment arrangement. Most of the advice on these boards is about illegal (unlicensed) ipdls and won't apply to them.

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Send message to kawgirl23
Sub: #3
Replied on 10-09-2008, 07:21 AM
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I have searched on the MD website for them to see if they are licensed and as far as I can see they are not licensed in MD for anything. I checked CashNet USA and Cash America. I'm going to call the MD Financial Regulation to verify if in fact they are licensed. If they are not licensed, then that means they are in fact illegal correct?

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Send message to kawgirl23
Sub: #4
Replied on 10-09-2008, 07:38 AM
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I did call the MD Financial Regulation and they are not licensed under CashNet USA or Cash America.

What should my next step be? They are not answering my emails. And on there website it says they are a member of CFSA, so they should honor my request for a EPP right? I got a $750 loan with them and I have paid them $942.26 and they say I still owe them $494.51. If I send them the letter and laws from MD and since they are not registered in MD and they still considered legal?

Also, I see that on their website it says that they are a BBB accredited business but when I search for them on the BBB website it says that they are not and that they have a unsatisfactory rating with them. So if I complain to the BBB about them will that give me some leverage as well and them not being licensed to lend in MD?




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Send message to paulmergel
Sub: #5 reply
Replied on 10-09-2008, 07:49 AM
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that's funny,CASHNET USA is usually licensed where they lend.
i see,i'm sure pdl's are prohibited in MD.therefore it might not be CASHNET USA .check your bank statements what shows up as the name debiting.it might be CASHNET500.they are illegal
everywhere.please check your bank statement.

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Send message to kawgirl23
Sub: #6
Replied on 10-09-2008, 07:51 AM
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Actually all the debits say Cashnet USA but the actual deposit says NCP Payday Adv. Who are they? I never noticed it before.

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Send message to kawgirl23
Sub: #7
Replied on 10-09-2008, 08:00 AM
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I actually did find their license in MD. It is under Cashnet CSO of Maryland, LLC. So I know that I have to pay them the balance, so I am able to do an EPP right and have my account settled and paid in full with no additional fees or charges?




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Send message to paulmergel
Sub: #8 reply
Replied on 10-09-2008, 08:06 AM
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this doesn't look the CASNET USA.they would have deposited under there name.if this was CASHNET USA they would be more willing to work with you.i noticed that there is a cashnet that isn't legal.they use CASHNET USA to justify there actions.i
doubt that it was THEE cashnet usa.




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Send message to Shazzers
Sub: #9
Replied on 10-09-2008, 08:08 AM
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They could be operating as a CSO (Credit Service Organization), in which case they are exempt from the payday loan laws. The only thing that makes me wonder is, in their email they pretty much made mention to the fact that they're a payday advance company:
Quote:
At CashNetUSA, we understand how important it is to our customers to have access to payday advance funds as soon as possible after an advance is approved. That's why we fund our advances through an electronic funds transfer provided by the automated clearing house ('ACH') network. We also provide for repayment of advances via ACH.
If this is true, then yes, they are lending illegally to MD residents as PDL's are prohibited in your state. I'm only speculating here, so don't take my word for it. Perhaps someone else can shine some light on this subject.





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Send message to Shazzers
Sub: #10
Replied on 10-09-2008, 08:11 AM
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Whoops, I posted this at the same time you were posting, so at least now we know they're a CSO. The thing is, they are 100% legal in what they charge, so it's doubtful that the interest and fees will stop, even if you can work out a payment plan with them. I still find it interesting that they specifically said in their email: "payday advance funds".





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Send message to paulmergel
Sub: #11 reply
Replied on 10-09-2008, 08:18 AM
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so MD like TX allows these places to skirt the pdl's laws by going by CSO'S.that's a shame.




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Send message to Shazzers
Sub: #12
Replied on 10-09-2008, 08:21 AM
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Yes, it's a shame!



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Send message to PinkLady
Sub: #13
Replied on 10-09-2008, 08:27 AM
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I'm dealing with cashnet right now. They keep trying to debit my account as well. I had payment arrangements set up with them through my debt management program and they stopped bothering me for awhile. I was late on one of my payments cause I was low on funds and wouldn't you know the day I got paid they went in and tried to pull the full amount. I quickly called the customer service line and explained to them the situation and this company had no authorization to debit my account. Since the transaction was only memo posted they were still able to place a stop payment and they didn't even charge me for it. I told cashnet if they tried to pull something like that again I was going to file a fraud case through my bank.

__________________
ILLINOIS LICENSE SEARCH / CONSUMER CREDIT / GUIDE TO PAYDAY LOANS
http://www.idfpr.com/dfi/ccd/ccd_licensees.asp

ILLINOIS PAYDAY LOAN LAWS
http://www.paydayloaninfo.org/state_detail.cfm?id=IL

WISCONSIN PAYDAY LOAN LAWS
http://www.paydayloaninfo.org/state_detail.cfm?id=WI

WISCONSIN LICENSE SEARCH
http://www.wdfi.org/fi/lfs/licensee%5Flists/

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Send message to kawgirl23
Sub: #14
Replied on 10-09-2008, 08:35 AM
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Well according to the CFSA website:

"If you [the customer] are unable to repay your advance when due, you may opt in to an EPP to pay the outstanding advance at least once in any twelve month period. Any outstanding fee will be included in the amount subject to EPP. "

and

"You may pay the transaction balance in four equal payments coinciding with your periodic pay dates. "

So they HAVE to set up the payment plan with me and it must be 4 equal payments to pay off the entire balance.

So right now, I'm still waiting on a response from them.

PinkLady, how long did it take for them to contact you? Were you in an EPP and did they stop all additional fees, etc and have you pay on your owed balance only?


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Send message to PinkLady
Sub: #15
Replied on 10-09-2008, 08:48 AM
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My debt management program sent them a proposal. They agreed to $105 a month to clear up my balance. They kept calling me until an agreed upon amount was made through my program. They didn't accept the first proposal of $65 a month. I will have them paid off in four months. I couldnt afford to pay them in 3 or 4 installments. Yes they did stop the additional fees. The only fee that was added to my total was a $10 nsf fee which I can handle that.

__________________
ILLINOIS LICENSE SEARCH / CONSUMER CREDIT / GUIDE TO PAYDAY LOANS
http://www.idfpr.com/dfi/ccd/ccd_licensees.asp

ILLINOIS PAYDAY LOAN LAWS
http://www.paydayloaninfo.org/state_detail.cfm?id=IL

WISCONSIN PAYDAY LOAN LAWS
http://www.paydayloaninfo.org/state_detail.cfm?id=WI

WISCONSIN LICENSE SEARCH
http://www.wdfi.org/fi/lfs/licensee%5Flists/

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Send message to kawgirl23
Sub: #16
Replied on 10-09-2008, 08:54 AM
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And also since NCP Payday Adv is obviously a payday loan, then technically what I do have is a payday loan and not an installment loan, and Cashnet USA did not give me any money. So does that make it illegal?

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