PDL - Cashnet USA and FL

Hey Queen,

You said that the Florida AG has been cooperative? Who have you been contacting? I have been contacting the OFfice of Financial Regulation regarding Eastside Lenders and they tell me that they are waiting for an "opinion from my office to see if we cover payday loans". I have overpaid Eastside by $162.50 and I refuse to pay them another penny. I think they sent me to Smith, Haynes and Watson collection agency, who I hear are scumbags. If you could give me the information of who you talked to, I would love to contact them.

Thanks!

Queen
I have had similar experiences to you. I have defaulted on 7 loans and was contacted regarding maybe 2 or 3.Then I was left alone. They all have my phone numbers( some have my old work #) but all have my house and cell. The worst threat i got was the one where the guy told me i would never be able to cash a check in a grocery store again if i did not pay. I have not yet had to deal with the horror stories I have heard, and I closed my account 4 months ago

they follow fl cso laws. Just like tx cso laws

CSO means Credit Service Organization. If you go to Cash Net USA's website it specifically states that Cash Net USA is acting as a CSO and is not the lender for Florida residents. It says:

CashNetUSA will not be the lender for loans received at this site. CashNetUSA is a Credit Services Organization. We will attempt to arrange a loan between you and a third party lender and service that loan once it is issued. Any questions, service issues or complaints about your loan will be addressed by CashNetUSA and not the lender.

I also found this information on what a CSO is:

I must say that it sickens me that payday loan companies can use laws put in place to help consumers rebuild their financial life, and use them to ruin it instead.

I agree Goudah...this is ridiculous!!! It's like giving them a "license" to charge outrageous fees again...Does this apply to just store fronts or does it include ipdls too??

What? So does this mean, that actually a pay day lender is using a "broker" so they can get around the law, basically? So if CashNet is a "broker" or whatever they want to be called, are they the "third party" of a different pay day lender? Call me confused. So who is the pay day lender? Not CashNet? Someone else? Oh Lordy. Goudah, you do a damn good job of finding stuff out. This is something we need to know. Now, if someone can clarify it for me in english, I would appreciate it so that I'll understand!

Pretty much if the "pdl" registers with the state as a CSO, they are totally unregulated as far as what they can charge for fees and such. They still would have to follow any interest rate caps, BUT they can charge a "fee", which is not considered interest, and there is no cap on the fee. Since there have been court cases that have found that these "fees" cannot be considered interest, they are safe to charge what they want. They do not have to be licensed.

So yes, if they are registered as a CSO the payday loan laws do not apply to them. You apply with the CSO, and the CSO, acting on your behalf, will get you a loan. They don't personally fund it, but they do service the loan. They would be the only company you would deal with.

This is how Cash Net USA is lending legally in Florida too.

You can find payday loan laws and legislation at; PaydayLoanLegislation.com .

The original CSO explanation was taken from: PaydayLoanLegislation.com/texas.html

Although the CSO reference is for Texas, the CSO Model is popping up in SC, GA, ILL, FL, OR, WA and a few more.

Because the CSO entity is not required to be "licensed" but rather simply be "registered" (typically a one page form) this model is becoming more and more popular. Particularly in states and provinces having adverse payday loan laws

Yep, it's just another way for them to skirt the laws . . . . .

This is just plain sad...

Okay, I think I understand now and now I'm mad. This is totally uncalled for. How can these places do these things and get away with it? Do I have to run for some type of government office position so I can have my foot in the right door and crack down on this stuff? Do they not see what's going on? And this just shows how incredibly sneaky these pdl's are. Finding holes to crawl under and give loans out a different way. Disgusting.

so, if this is the case how do i go about claiming a PIF? or I will have to work out payment arrangements?
do you believe they went into the account three times this week. Thank God that account is closed but I can still see them trying to pull funds

Queen...is this the pdl that you have overpaid?? What I did: Sent a cease and desist letter...and in it I stated how much I borrowed and how much I paid back citing the difference as an overpayment...demanding to be marked PIF and asking for a refund. Now I don't expect to get the refund but I will be elated with the PIF.

I can try to PM you a copy of one of mine if you haven't found one on the forum yet....did you figure out how to PM someone ??