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 Posted: Fri Mar 07, 2008 11:02 am
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Just wanted to share this little tidbit that a lawyer friend gave me to read.....please go to the following site and read on this information...just copy and paste to your web-browser
texasbar.com/Content/ContentGroups/Publications3/Journal/20081/March7/ Client%20Page%20March%202008.PDF
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purplegirl69
Joined: 26 Feb 2008
Posts: 251
Debtcc Points: 3475
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Posted: Fri Mar 07, 2008 11:20 am
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Thank you! This site was very informative. I was very worried about the threat of criminal charges on a bad check. This site explained a lot.
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aaron20910
Joined: 29 Feb 2008
Posts: 5
Debtcc Points: 157
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Posted: Fri Mar 07, 2008 11:24 am
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I am glad to help at least in my spare time...I have had so much help from this site, I feel I need to give back some.........I will more once i get through my pdl hell.........just begun, but thanks to this forum...i am staying strong...
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purplegirl69
Joined: 26 Feb 2008
Posts: 251
Debtcc Points: 3475
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Posted: Fri Mar 07, 2008 8:39 pm
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I find this the MOST interesting part of it because so many questions arise regarding "criminal action" in the state of Texas since it is not specified on the Texas pdl state law:
| Quote: | If you fail to pay and your check or
debit bounces, have you committed
a crime?The short answer is no. In fact, the
consumer has not passed a hot check or
committed theft because the lender
knows when it receives the check or the
debit authorization that there will be
insufficient funds in the account at the
time of the transaction. Otherwise, why
would a consumer be seeking the loan?
Likewise, there can be no presumption
of criminal intent if the check is postdated,
and probably not if it is undated.
In practical terms, criminal hot check
or theft prosecutions arising out of a payday
loan transaction are rare, to the
extent they occur at all. Should you be
prosecuted for such a crime, however,
you should hire an attorney because
there is likely to be a good defense.
In effect, the explicit or implicit threat
of criminal prosecution that induces many consumers to renew loans and to
pay fees usually has no teeth. |
Also, this is GREAT information for Texas residents with pdls:
| Quote: | Do payday loans possibly violate
other laws?Yes. Besides usury, payday lenders that
pretend to be sellers often violate the
Truth In Lending Act as well. TILA
requires disclosure of the annual percentage
rate, the finance charge, the total of
payments, and the schedule of payments.
Since 2000, it has been undisputed that
TILA applied to payday loans as extensions
of credit. Because businesses pretending
to be sellers instead of lenders
often fail to provide any TILA disclosures,
this type of payday lender is also
liable under TILA.
In addition, all payday lenders may
violate the Texas Debt Collection Act by
threatening hot check arrest or criminal
prosecution when the check or checks,
serving as security, are deposited and then
bounce. Such threats by a third party,
such as an attorney or an independent
debt collector, also may violate the federal
Fair Debt Collection Practices Act. |
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cannr
Moderator
Joined: 07 Jun 2007
Posts: 9363
Debtcc Points: 124756
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Posted: Fri Mar 07, 2008 8:41 pm
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Thanks for posting that, purple! And thank your lawyer friend also! Great information for the MANY Texas residents who are here!
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cannr
Moderator
Joined: 07 Jun 2007
Posts: 9363
Debtcc Points: 124756
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