Have been rsearching Texas law tonight...and think I might have a way to get some of my PDLs to cancel my debt owed...might not end up needing T&C afterall. Here's what I found in the Texas Code:

Texas appears to have an interest cap of 48% apr + a $10 loan fee per loan. Also saw a statute regarding "alternate interest" on cash advances >$100. It states that a $10 acquisition fee is allowed + an installment handling charge of $4/month per $100 loaned.

I have paid WAY more interst in this. How do you think I should proceed? I am more than willing to write a letter and FAX it to the PDL folks and see how they respond.

My PDLs are all with internet lenders...most are based in Utah and Delaware, which coincidentally have NO cap on finance charges!

[set4sail]

wendy, does Texas require a license to lend or arrange pdl loans?

And it never hurts to get all of the information together regarding how much you've paid, and approach the lenders asking to consider the loan paid in full. Do you have a list of how much you have paid?

Did some more research...it appears that Texas law DOES require all lenders "doing business" in the state to be licensed. The consequences of doing business w/out a license is pretty steep too ! I am a licensed attorney who got into my payday loan hole after graduation when I was unable to secure a full-time job right away.

I am making great money now, but after the fees are paid and my bills are paid...I'm barely having anything leftover. I just want it done with once and for all. Contracted w/T&C, but may actually get some of them to cancel my debt b/c of the non-licensure AND the fact that they have charged WAY over the Texas interest cap!!

[set4sail]

wendy, don't feel bad there are many of us here that have gotten into the same situation. No one is immune if they get to the point that there is no alternative.

Many members here have been able to get loans forgiven, though the lender says they are on the "do not loan" list. Oh hurt me lol. It bears repeating though to make sure you get a written statement from the lender to verify an email or spoken agreement, because underhanded pdl have come back and tried to collect from people after saying the loan was paid in full. And also, in case they sell the loan to a collection agency later.

Good luck!

Thanks...my PDL issues are my secret shame...no one knows about them other than on here. Not my family, not my friends. It's just so embarassing to let people know how out-of-control your finances have gotten. Just knowing I'm not the only one in this boat has made me feel so much better!

Here's what I found out about Texas law from a quick internet search. The Texas Office of Consumer Credit Commissioned cracked down last year and instituted the following regulations:

(1) All PDL companies are to be licensed in order to loan in Texas. Further, a person must not, "use any device, subterfuge, or pretense to evade application of this section."

(2) There is a cap on interest. LICENSED PDL companies may charge a $10 upfront fee, plus $4 per $100 loaned per MONTH.

Also, a loan contract may provide for an admin fee of $20 for a loan of $1K or less. This refinance fee can only be charged once per 180-day period.

(3) Loans that rollover more than twice MUST be turned into declining balance loans with a set repayment schedule.

Maximum loan term for a cash advance >$100 = one month for each multiple of $20.

(4) A lender MAY NOT take as security for a loan an ASSIGNMENT OF WAGE!!!

Penalties and Remedies available per Texas Finance Code Chapter 305:

(1) For charging interest in excess of what is allowed = 3X the amount computed by subtracting the amount of interest allowed by law from total interested charged OR $2K or 20% of the amount of principal (whichever is less).

(2) Also...a creditor who charges and receives interest that is GREATER THAN TWICE THE AMOUNT allowed is liable to obligor for (A) principal amount on which the interest is charged/received AND (B) interest and all other amounts charged/received.

This info is from the Consumers Union website and provisions of the Texas Commerce Code.

[set4sail]

Texas provides more information on remedies. VA law just states that civil action can be taken by the consumer if a lender violates VA law. May be able to recover actual and punitive damages.

I was looking it up for someone else last night, and IN law states that the violating company can be made to pay the consumer $1000 per violation. I like that straightforward statement, like the TX law.

Now...how do I figure out whether these predatory lenders are licensed in Texas?

[set4sail]

wendy, I don't know about Texas but in many states a consumer can verify the license status of the companies online.

I looked it up, and the Texas Finance Commission, Dept of Banking, oversees licensing for pdl. They call it "money services business licensees". Here is a link to the TX state website to look up licensed lenders:

http://www.banking.state.tx.us/asp/msb/lookup.asp

Big surprise...none of them are licensed in Texas. So...according to my thinking, these are invalid contracts b/c the PDL companies I have loans with are not licensed to lend in Texas. Think I'll send out a letter or two and see what the response is. Plus...even they WERE licensed in Texas, they totally are in violation of the interest rate cap.

Anyone think I have a shot at getting some of my loans marked PAID IN FULL? I hope they put me on a DO NOT LOAN list b/c I NEVER want to see a PDL again in my life!! I know that some people here have had luck w/GW Financial and Cashnet 500, two of my lenders!!

[set4sail]

I've had luck with One Click Cash and United Cash Loans. I'm working on Quikpayday. It never hurts to approach them. If nothing else, reduce what you have to pay back.

From the Texas AG's office bulletins:

(1) A usurious contract is NOT ENFORCEABLE under TX law!! So, if a PDL lender does not follow TX law, it would appear that the contract is immediately void.

(2) There is a 10% cap on short-term loan interest...unless the lender is licensed.

The more I search, the better the news seems to get !

[cmcdonald]

Bumping this up- This is great info- now can anyone put it into a format with codes cited to use for a letter?

Crystal

Wow, this info can really help some people..maybe they should sticky this.

[Not so Lucky]

http://www.occc.state.tx.us/pages/FC...un04/1516.html

[CycloneFan]

Tammy thanks for jumping in, I just pm'd that link to Crystal also, but (of course) you found it before me.

[cmcdonald]

Ok- maybe I am being dense- but it just looks like legal greek to me. How exactly do I use this info?

Crystal- who really appreciates all the help!