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 Posted: Thu Aug 02, 2007 12:09 pm Subject: theft by check?
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We had a loan that we had to let go, it was affecting our other bills. The check was returned to the loan office for nsf. I got a call from them that said I have thirty days to pay extension fees or the whole amount or they will send it to the da and file theft by check charges. Can they do this? I have read the rules but am still confused.
The loan was from First Cash Advance in houston. The original amount was for $520 and paying $132 extension fees and such every two weeks. I have paid about $530 so far but only fees, nothing has went to the actual principal.
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Posted: Thu Aug 02, 2007 12:12 pm Subject:
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This is a storefront payday loan, correct?
It isn't specified in Texas law whether or not a pdl can file charges for a bounced check.
I would think that if anything it would just be a bounced check issue, not a theft issue. But I would call your state's office of consumer credit to verify what they can and can't do. Their phone number is (512) 936-7600.
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goudah2424
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Posted: Thu Aug 02, 2007 12:48 pm Subject:
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This is a storefront loan. I will call and see what they say. I also checked to see if they were licensed but it says there license was cancelled. But when I got the call, it was from a Texas loan corp calling on their behalf. I can't find info on them. That is also what I made the checks too "TLC".
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Posted: Thu Aug 02, 2007 1:06 pm Subject: texas
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Call me crazy, but I just checked and don't see the pdl even licensed in Texas or the other company (that I assume may be a collection agency?). Neither name came up as licensed in Texas. If someone wants to double check me, please feel free and correct me if I'm missing something!
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cannr
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Posted: Thu Aug 02, 2007 1:15 pm Subject:
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Sometimes they will be licensed under a corporate name or a dba. That's why sometimes it can be tricky trying to find licenses for these companies. The best thing to do if you are unsure is contact the regulatory authority for your state. They can tell you for sure if the company is licensed or not.
If this is an unlicensed storefront, then they could be in some pretty big trouble . . . .
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goudah2424
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Posted: Thu Aug 02, 2007 1:21 pm Subject: goudah
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Thanks, goudah. I guess it would be a pretty good idea to make that telephone call. It's not showing up under their store front name; however, it could be a d/b/a. The company she's been making her checks out to, Texas Loan Corp, wasn't listed either. Her best bet would be to make that phone call and see if it's under another name. Or, like goudah says, they could be in some trouble if they're operating without a valid license.
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cannr
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Posted: Thu Aug 02, 2007 1:56 pm Subject:
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Thank you guys for the help. I called the number and was told that they do not have to be licensed in Tx because they can operate as CSO's (credit service organizations). I also called the local DA office myself on CC's advice and was told that they DO NOT take any cases from payday loans at all. They do not deal with them. So at least I can breathe easier. Thank you guys so much.
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Posted: Thu Aug 02, 2007 3:31 pm Subject:
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No problem. I wasn't aware that pdl's were operating legally as CSO's, but it sure makes a few things make more sense now!
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goudah2424
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Posted: Thu Aug 02, 2007 8:08 pm Subject: goudah
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goudah, could you please post and explain this better? I'm starting to get paranoid now since I don't understand this whole CSO thing. Thank you for any help!
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cannr
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Posted: Fri Aug 03, 2007 7:02 am Subject:
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A CSO (Credit Service Organization) does not have to follow the same laws as payday loans. Since originally the idea was that these places would help the consumer, they are an pretty unregulated industry. A CSO is supposed to help the consumer improve their credit rating, or obtain credit for the consumer, or service either of the two.
What happens is you apply at the CSO. They then will take your application to a lender, and help you get the loan. It's almost like you have a cosigner. But they aren't responisble like a cosigner. The idea is since you have bad credit, you use this company to help get a loan because this company will say "Yes, this person is worthy of the loan".
The CSO services and handles all issues involving the loan, so you would never even talk to the original lender. And since there have been court cases that have determined that any fees charged by these CSOs cannot be considered interest, they can pretty much charge what they want. They still have to follow any interest rate caps, but they can charge a fee too and that cannot be looked at as interest.
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goudah2424
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Posted: Fri Aug 03, 2007 9:14 am Subject:
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If they are not considered a "payday" company you might want to be be careful with the NSF check then. You can have charges filed against you for a NSF check that you do not pay back. Talk to the DA's office again to make sure and explain everything in detail. This is the Texas bad check statute. I see these types of charges all the time so be careful with this.
| Quote: | 32.41. Issuance of Bad Check
(a) A person commits an offense if he issues or passes a check or similar sight order for the payment of money knowing that the issuer does not have sufficient funds in or on deposit with the bank or other drawee for the payment in full of the check or order as well as all other checks or orders outstanding at the time of issuance.
(b) This section does not prevent the prosecution from establishing the required knowledge by direct evidence; however, for purposes of this section, the issuer's knowledge of insufficient funds is presumed (except in the case of a postdated check or order) if:
(1) he had no account with the bank or other drawee at the time he
issued the check or order; or
(2) payment was refused by the bank or other drawee for lack of funds
or insufficient funds on presentation within 30 days after issue and
the issuer failed to pay the holder in full within 10 days after
receiving notice of that refusal.
(c) Notice for purposes of Subsection (b)(2) may be actual notice or notice in writing that:
(1) is sent by registered or certified mail with return receipt
requested, by telegram with report of delivery requested, or by first
class mail if the letter was returned unopened with markings indicating
that the address is incorrect and that there is no current forwarding
order;
(2) is addressed to the issuer at his address shown on:
(A) the check or order;
(B) the records of the bank or other drawee; or
(C) the records of the person to whom the check or order has been
issued or passed; and
(3) contains the following statement:
"This is a demand for payment in full for a check or order not paid
because of a lack of funds or insufficient funds. If you fail to
make payment in full within 10 days after the date of receipt of this
notice, the failure to pay creates a presumption for committing an
offense, and this matter may be referred for criminal prosecution."
(d) If notice is given in accordance with Subsection (c), it is presumed that the notice was received no later than five days after it was sent.
(e) A person charged with an offense under this section may make restitution for the bad checks. Restitution shall be made through the prosecutor's office if collection and processing were initiated through that office. In other cases restitution may, with the approval of the court in which the offense is filed, be made through the court.
(f) Except as otherwise provided by this subsection, an offense under this section is a Class C misdemeanor. If the check or similar sight order that was issued or passed was for a child support payment the obligation for which is established under a court order, the offense is a Class B misdemeanor.
(g) An offense under this section is not a lesser included offense of an offense under Section 31.03 or 31.04. |
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ramj70
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Posted: Fri Aug 03, 2007 9:29 am Subject: goudah
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Would one know if they are dealing with a CSO? Or would one just be thinking they are dealing with a pdl? Is it written on anything stating that they are a CSO when you take out the pdl?
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cannr
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Posted: Fri Aug 03, 2007 10:51 am Subject:
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I would think that it would be on the contract somewhere. For Cash Net USA, it is clearly stated on their website that for Florida residents (and possibly other states, i haven't checked) that they are operating as a CSO and are not the lender for that state.
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goudah2424
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Posted: Fri Aug 03, 2007 10:52 am Subject:
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It says the same stuff on their website for Texas too.
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goudah2424
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Posted: Fri Aug 03, 2007 10:58 am Subject:
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I just looked at all the states Cash Net USA services, and it looks like the only two the operate as CSO's in are Texas and Florida.
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goudah2424
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Posted: Fri Aug 03, 2007 7:52 pm Subject: goudah
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goudah, I just have to say, you do one hell of a job researching! Thank you so much for all the effort you put into finding things out. Even if they don't pertain to me, I read it all and learn all the while. Thank you!
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cannr
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