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Posted: Mon Jun 30, 2008 1:58 pm Subject: Help in Texas! Cash store/Checkngo

Okay, I am sooooo glad I found this place. I already feel relieved. I've been reading tons of posts and I feel like this is where I belong. Three of these are my husband's loans but of course I'm the one stuck with trying to figure a way out of this mess. Sad

My husband very recently got laid off and had to take another job that pays quite a bit less and we're just in over our heads to say the least. I'm making myself sick over this huge mess and feel like such an idiot.
Here's the deal.....*the first two are storefront*

The Cash Store..loan amount $1200, paid over $800 in interest fees so far *loan was due on 6/28 but they give us 4 extra days grace* We don't have the $200 to rollover again and my husband already tried talking with them on the due date but they are not willing to help Sad

(This is not his first loan with them either...It makes me so sick to calculate how much they've made off of us)

Check N' Go...loan amount $700, paid about $435 in interest

Below are Internet...one's in his name and one's in mine

PaydayOne-loan amount $500, paid 0
PaydayOne-loan amount $500, paid $230 in interest

We live in Texas and their laws confuse the heck out of me!

Soooo...any suggestions??

I don't know what to do about The Cash Store since the last day of grace is only 2 days away. Do we close our account? They have a post dated check but convert their checks to ACH.

TIA,
Charlotte

Posted: Mon Jun 30, 2008 2:59 pm Subject:

Welcome MC! I can't help you much with PDLs, but I wanted to let you know that if you hang in there, someone with more knowledge should be along soon to advise you.

If you do decide to close your bank account, be sure that you read this information first:

http://www.debtconsolidationcare.com/paydayloan/close-account.html

Good luck!

Posted: Mon Jun 30, 2008 3:03 pm Subject:

mcmmdesurne hello and welcome to the community! If I am not mistaken, these loans you have aren't pdl's, but CSO's. I'm not quite sure how you should handle them, but if you hang tight someone who knows more about these types of loans should be around shortly. Goudah knows a lot about CSO's. Hang tight!
Smile

Guest · Posted: Tue Jul 01, 2008 5:29 am Subject:

The CSO should be treated as a legal PDL.

Posted: Tue Jul 01, 2008 5:42 am Subject:

What are CSO's ? I live in NC where payday loans are illegal.

Guest · Posted: Tue Jul 01, 2008 7:10 am Subject:

I am in Texas and starting this fight myself for PDL's. I have a 5 - 4 are internet and 1 is storefront.

I see that The Cash Store is a storefront. Are your other ones storefronts as well?

Posted: Tue Jul 01, 2008 7:11 am Subject:

sorry - I forgot to log on. I forget sometimes.

sam

Posted: Tue Jul 01, 2008 7:13 am Subject:

Yes, the guest is right. CSO's are legal and should be treated as a collectible debt.

Posted: Tue Jul 01, 2008 7:16 am Subject:

wssu - A CSO is a Credit Service Organization. They are mainly in Texas, but there are a few other state's like Florida and Maryland where they are popping up.

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:
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
An application fee for filling out the CSO documents; typically $10 per $100
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.

Posted: Tue Jul 01, 2008 8:46 am Subject:

Okay, so what is the best way to handle these? We want to make good on them and not leave on bad terms. We've both been customers with the Cash Store for at least 2 years and have never had a problem paying back until now. Check N' Go....we haven't discussed anything with them yet and the online ones we haven't discussed arrangements either....I'm just mainly concerned with The Cash Store right this moment since it's due.

I apologize in advance, I am so clueless! LOL

Posted: Tue Jul 01, 2008 9:01 am Subject:

Don't apologize! Ask anything you'd like Very Happy

I'd concentrate on the legal loans first. Get them out of the way. Most of the places are probably CFSA members, which means they have to offer an Extended Payment Plan. This will allow you to pay off the loan in 4 equal payments. If you can afford it, it's a great option because no more interest will accrue while you are in the plan.

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Help in Texas! Cash store/Checkngo

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