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 Posted: Mon Jun 26, 2006 12:00 pm Subject: TX State Law |
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Hello all... I've spent the past hour trying to decode this TX law stuff, and I'm having some difficulty. For those of you that understand this stuff, this may be helpful to you if you're from TX.
| Quote: | Loan Terms:
Maximum Loan Amount:
Loan Term: 7-31 days
Maximum Finance Rate and Fees: $10 per loan + 48% annual interest
Finance Charge for 14-day $100 loan: $12
apr for 14-day $100 loan: 309%
Debt Limits:
Maximum Number of Outstanding Loans at One Time: Not Specified ($500 aggregate loans outstanding to all licensees)
Rollovers Permitted: None (if renewal charge is less than maximum interest rate permitted; otherwise convert to declining balance installment note)
Cooling-off Period:
Repayment Plan:
Collection Limits:
Collection Fees: Not Specified
Criminal Action: Not Specified |
I'm trying to determine if any of my loans are in excess of TX's laws, but I'm not sure what to make of all that stuff at the top about finance rates and APR, or about whether rollovers (same as loan renewals?) are allowed. If anyone could help explain this to me, I would be very grateful. 
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apaverystar23
Debt Samaritan
Joined: 06 Apr 2006
Posts: 223
Location: Texas Debtcc Points: 4904
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| Posted: Mon Jun 26, 2006 12:06 pm Subject: |
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Also, to any of you who have had collectors call and threaten criminal charges against you and scare the living daylights out of you:
| Quote: | Prohibited acts: The lender cannot make more than one loan to a consumer or to a husband and wife for the
purpose of obtaining an amount of interest greater than the amount of interest otherwise allowed. Lender
cannot pursue criminal charges to collect on the debt. Lender cannot renew a loan and collect an acquisition
charge more than once per month. |
As far as I know, bank fraud and the other things those collectors threaten you with are criminal charges, so they must be completely full of it if they threaten you with that. Which I think I might tell them next time they call me.
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apaverystar23
Debt Samaritan
Joined: 06 Apr 2006
Posts: 223
Location: Texas Debtcc Points: 4904
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| Posted: Mon Jun 26, 2006 12:23 pm Subject: |
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If you are having difficulties in ascertaining the loan amount, talk to a debt counselor who can help you in this situation. Use these calculators to do the complex calculations regarding apr and other interest rates.
http://www.debtconsolidationcare.com/calculator/
The basic things have been mentioned in the state laws. The lending company cannot use these conditions in your loan contract. Don't scare from the collection agencies who use scary tactics. The federal laws state that collection activities that threaten criminal charges unless intended is a federal violation. You can record the conversation of those collectors using illegal threats and show it to your lawyer.
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andyyoung
Joined: 05 Jun 2006
Posts: 473
Debtcc Points: 6485
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| Posted: Mon Jun 26, 2006 1:37 pm Subject: |
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Reading that made my head hurt!
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Ehwin
Joined: 11 Apr 2006
Posts: 147
Debtcc Points: 3927
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| Posted: Mon Jun 26, 2006 2:06 pm Subject: |
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You're not kidding... I felt pretty dumb the first time I tried to read through that stuff. I'm trying now to just get a decent enough understanding of what it says so that I can maybe stop paying on some of the loans I've seriously overpaid on, and have something coherent to say on the phone the next time somebody from one of those companies calls and scares me. I'm so glad I have the people on this website to talk to; I think if I was trying to do this alone I'd just sit in the corner and bang my head against the wall.
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apaverystar
Guest
Debtcc Points: 100
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| Posted: Mon Jun 26, 2006 2:33 pm Subject: |
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Why wait!! Start posting your queries one by one and the great people here will start finding easy solutions for you. This forum has people with sound and useful information.
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andyyoung
Joined: 05 Jun 2006
Posts: 473
Debtcc Points: 6485
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polly
Site Admin
Joined: 02 Mar 2006
Posts: 1801
Debtcc Points: 22939
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| Posted: Mon Jun 26, 2006 9:43 pm Subject: |
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Star23, most payday loan lenders in Texas don't abide by Texas Payday loan laws. These payday loan "firms use the Credit Service Organization status as a way to evade federal guidelines.The Texas Credit Service Organization Act permits compnies to act as loan brokers. These CSO's aren't licensed by the Texas Office of Consumer Credit Commissioner and their fees are completely unregulated."
Now what does this mean? To me it means that they skirt the law by teaming up with someone form out of state and under the CSO, they don't have to abide by the laws that you posted to start this thread.Now, does that mean that they can wreck your credit or anything? Doesn't sound like it, but you never know.
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notell39
Joined: 06 Jan 2006
Posts: 25
Debtcc Points: 1048
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