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 Posted: Fri Jul 18, 2008 9:51 am Subject: Cancelled bank account...now what? |
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I had 4 PDL and defaulted on all of them. I canceled my bank account, but I also can't pay them all back for at lease another month and I keep getting phone calls telling me that "action will be taken" if I don't get these resolved. What do I need to do??? Any advice will help right now.....I'm in Texas by the way.
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a_red28
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Debtcc Points: 100
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| Posted: Fri Jul 18, 2008 10:01 am Subject: |
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Hi A_red28,
The first thing would be to list the name of the pdl, amount borrowed and amount paid back...I believe in Texas some might be what they call CSO's and may be legal...there are others who have a little more experience in that area and should be able to help...
If they are legal, then you would need to work out a payment arrangement with them, but again I will defer to the ones who have dealt woth them...
It will take a little work and patience, but you will be able to get through this.
If they
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dawnlango7
Joined: 05 May 2008
Posts: 597
Debtcc Points: 2828
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| Posted: Fri Jul 18, 2008 10:05 am Subject: |
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what is a CSO and how are they different from a PDL?
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smo65d11
Joined: 21 Mar 2008
Posts: 742
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| Posted: Sat Jul 19, 2008 3:24 am Subject: |
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I am giving an overview of Credit Services Organization (CSO) as written by Goudah in http://www.debtconsolidationcare.com/paydayloan/discount-advances-igot it.html#373934
| Quote: | What is a CSO Credit Services Organization
In essence, a CSO or Credit Services Organization is defined by the Texas Credit Services Organization Act (Section 393 of the Texas Finance Code) as an entity or person that provides one of the following services:
*Improving a consumer's credit history or rating
*Obtaining an extension of consumer credit for the consumer
*Providing advice or assistance to a consumer regarding the previous two services
An important aspect of the CSO or Credit Services Organization model is that there IS NO LICENSING required by the state! CSO's are required to "REGISTER" with the Secretary of State, they are NOT licensed, AND THEIR FEES ARE NOT REGULATED.
How does the CSO Credit Services Organization work with payday loans?
The CSO Credit Services Organization operates as a broker, much as they did when partnering with the banks (payday loan bank model). The Texas Credit Services Organization Act (CSOA) allows the payday loan lender to register as a CSO and act as a loan broker. Thus, the CSO, previously a payday loan company, can make loans via consumer lending companies that are UNREGISTERED and UNLICENSED. The CSO Credit Services Organization acts as a broker for the consumer in need of funds by issuing a "letter-of-credit" on behalf of the consumer to a lender. This third-party unregistered lender funds the "loan" brokered by the CSO "broker".
Typically the CSO Credit Services Organization collects 3 fees:
1. A referral fee for referring the consumer to the unregistered, unregulated lender that actually funds the "loan". This is not stipulated by any law but is currently $20 to $30 per $100
2. An application fee for filling out the CSO documents; typically $10 per $100
3. The interest on the "loan"; Texas state law caps this at $10 per $100.
The CSO Credit Services Organization model arises from a U.S. Fifth Circuit Court of Appeals opinion, in Lovick vs. Rite Money, which held that payments to a registered CSO loan broker could not be treated as interest. |
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phoenix
Joined: 14 May 2008
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| Posted: Sun Jul 20, 2008 1:05 pm Subject: |
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I would go and get another bank account ASAP (not giving new info to PDLs, of course). That way if any of the PDLs pull any funny business you will at least know that is in place. Is this necessary, no its not. But, I do know that when I was going through the process of getting rid of the PDLs and I cancelled my bank account, the first thing on my mind was getting another account (at a different bank) opened ASAP. It just made me feel better, somehow.
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Lorri
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Joined: 27 Apr 2006
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| Posted: Sun Jul 20, 2008 1:17 pm Subject: |
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Closing your bank account is really the only way to stop the PDL withdrawals. I closed mine out, reopened another immediately at my bank and the promised me that nothing would force it open. They kept that promise. Someone will be along shortly to post and interpret your state laws. Hang tight.
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llw1995
Joined: 02 Feb 2008
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