Internet's first get-out-of-debt community - 123,000 members

Posted: Sun Sep 02, 2007 6:11 am Subject: cashnetusa

Hello to all....

I have sent a copy of my loan papers from CASHNETUSA to the Sandra Smith at the Florida Regulations department. I am also asking her to explain why CSO's can get way with breaking the lending law. I don't get it. If the law clearly states that there are no rollovers or extentions allowed and that they can only charge their fee's once, then why does a CSO get away with going against these laws? If they can only charge 10% + $5.00 per $100, then why am I paying $38.79 for a $150.00 loan? I'm not great at math, but, I figure it should be $15.00 +$5.00, right? According to the email that cahsnet sent me back, they state that they are allowed to roll my loan over 3 times. I know that this has been explained to before on this forum, but, I think that our states department need to hear about this CSO thing so that they can get a handle on them too! Any thoughts...... anyone?

Posted: Sun Sep 02, 2007 6:38 am Subject:

I agree! I emailed my AG, Congressmen, and Senators about one I was dealing with, also did the same on a Debt Collector and some of their practices! If they don't know what's going on, they can't do anything about it, and the more complaints they get, the better!!..Karen

Posted: Sun Sep 02, 2007 6:42 am Subject:

I'm not sure why this has slipped by the state depatments, but, if that is the case, I'm afraid that more and more PDL companies are going to to go that same route. THEN we will have nothing to fight them with !!

Posted: Sun Sep 02, 2007 8:45 am Subject:

The thing we can fight them with is speading the knowledge not take these types of loans out at all...I swear I would sell everything I own and live out of my car before I would ever do it again...

Guest · Posted: Sun Sep 02, 2007 10:16 am Subject:

Thanks Karen and Morningstar for replying. I know, everybody is probably tired of hearing about this CSO thing, but, even though this is suppose to be a 'legal' way for them to operate, I'm sorry. I see nothing legal about it. Cashnet has rolled my loan over...ILLEGAL !....instead of charging 10% + $5.00 for the fee's, they charge $38.79 for a $150.00 dollar loan...ILLEGAL!.....I'M SORRY, I FIND NOTHING LEGAL ABOUT THEM!! Instead of us writing about how they are legal, let's start doing something about it. Ok... I'm on my soapbox...........
More than likely, if it wasn't for the people on this forum, emailing and filing complaints to the state departments, payday loans would be sleezing on about their merry way, making loans to people that do not realize that they are being abused financially. I know... you all probably have filed complaints. I just think that we need to get something done about them. NO HELL LIKE A WOMEN'S ( OR MAN'S) SCORN. Cashnetusa, does scam a lower rate for their loans that they broker, big deal! I plan on continuing to try and get the state of Florida to do something about it too. The sad thing about this is when I talked to Sandra Smith, which is a SENIOR INVESTIGATOR for Florida, she is telling me that CASHNET USA IS ILLEGAL !!! What's wrong with this picture people ?? She doesn't know the difference because her department hasn't had enough stuff stirred up about CSO'S ! Can't we try to do something about that??

Ok, I wish I could say that "I feel better now". I don't feel any better at all !

Going 'Nutsie' in Florida

Posted: Sun Sep 02, 2007 10:20 am Subject:

sorry... I got so fired up I didn't sign in..... that was me... Nutsie1

Posted: Sun Sep 02, 2007 11:41 am Subject:

Nutsie....this is only my opinion and only based on what I have been reading here in our forums...but the way I look at it is...the internet pdls were all unregulated as they started too...and look what has come down...I'm sure they have been around longer than our group has been fighting for legality.CSO's right now are the same in as they are unchartered territory again...so they will run rampant and I think that will be the new wave of the future for the pdls...however I agree with you to complain, write letters and bring it to the front..maybe then regulation would take place much sooner rather than after 1000's of people have been hurt by these types of loans again...

Posted: Sun Sep 02, 2007 12:00 pm Subject:

thanks Morningstar for replying...

Posted: Sun Sep 02, 2007 3:32 pm Subject:

I feel the exact same as you! I never even knew mine was a CSO until I got a colelction letter! I have mailed them asking for a copy of the contract, then I intend to pick through it with a 1000x microscope...as it is I still feel they were passing themselves off as a payday loan, I am strongly considering taking the company to small claims court over it as deceptive practice, even if I lose, at least I tried.

Guest · Posted: Sun Sep 02, 2007 4:35 pm Subject:

thank you for replying. They didn't ake me for that much. But evev a little is too much>>
thanks again,
Nutsie

Posted: Mon Sep 03, 2007 8:56 pm Subject: reply

Maybe frogpatch will come around. He's pretty good at the whole CSO stuff and goudah, too. Very Happy

Posted: Tue Sep 04, 2007 6:45 am Subject:

Federal law has found that fees charged to a CSO cannot be considered interest. In Florida, Cash Net USA is charging a $25 fee per $100 and 18% interest. Since the fees cannot be considered interest, they technically are only charging you 18% interest, which is within the law.

The U.S. Fifth Circuit Court of Appeals opinion, in Lovick vs. Rite Money, held that payments to a registered CSO loan broker could not be treated as interest, so by law the fees cannot be considered interest.

Posted: Tue Sep 04, 2007 6:51 am Subject:

Nutsie you also need to remember that Cashnet Usa falls under statue CH 516 not CH 560.

Posted: Tue Sep 04, 2007 6:59 am Subject:

Pybasj - How does it fall under that? Since they aren't a lender in Florida, they wouldn't fall under consumer finance laws. I know that officials in Florida were looking at applying the law to pdl's, but Cash Net USA isn't a pdl in Florida. They are only a broker.

Posted: Tue Sep 04, 2007 8:32 am Subject:

Lisa Jackson one of the investigators in Florida told me that they fall under Ch 516 because of how they were registered. Because they are acting as a CSO and are registered it would fall under small consumer loan. But because they are not licensed anything over 18% interest is not legally enforceable. She did tell me they are investigating and want all my paperwork to see if they can find either a loophole or a way to make them illegal. I do not completely understand it all but I am trying. They are having difficulties with the fact that their registration is under one name and they operating with another even though they are similar.

*Name:
*Email:
*Phone:
*Zip:
Debt

	* denotes required field

Internet's first get-out-of-debt community - 123,000 members

cashnetusa

Members Area

Free Debt Counseling

Ask the community

Featured Discussions

Featured Articles

Question of the Month

Useful Links

Recent Forum Discussions

Recent Blog Post