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 Posted: Mon Oct 29, 2007 8:28 pm Subject: I too need help with pdl in Texas.....
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Here is my situation.......
1. EZ Money Loan--- $280.00-- loan interest $57.07 amount to payback $337.07
2. Advance America--- $400.00---finance charge $81.82
amount to payback $481.82
3. short term loan from lynn's check cashing called
BAM FINANCIAL,LLC but also says Lenders Name: Mister Money Holdings, Inc.----$400.00---finance charge $83.07 amount to payback $483.07.
Not sure what to do here just know that can't get out of debt with these people and have to keep renewing every 2 weeks and just can't keep doing that! Please tell me what to do.
Christie
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fitztex
Joined: 29 Oct 2007
Posts: 17
Debtcc Points: 538
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Posted: Mon Oct 29, 2007 8:33 pm Subject:
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are these internet or storefronts?
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aminah0529
Joined: 23 Oct 2007
Posts: 415
Debtcc Points: 3290
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Posted: Mon Oct 29, 2007 8:35 pm Subject:
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here are the laws in your state:
| Quote: | Texas State Information
Legal Status: Legal
Citation:
7 Tex. Admin. Code § 1.605; Tex. Fin. Code Ann. §§ 342.251 et seq. and 342.601 et seq.
Loan Terms:
Maximum Loan Amount:
Loan Term: 7-31 days
Maximum Finance Rate and Fees: $10 per loan + 48% annual interest
Finance Charge for 14-day $100 loan: $12
apr for 14-day $100 loan: 309%
Debt Limits:
Maximum Number of Outstanding Loans at One Time: Not Specified ($500 aggregate loans outstanding to all licensees)
Rollovers Permitted: None (if renewal charge is less than maximum interest rate permitted; otherwise convert to declining balance installment note)
Cooling-off Period:
Repayment Plan:
Collection Limits:
Collection Fees: Not Specified
Criminal Action: Not Specified
Where to Complain, Get Information:
Regulator: Texas Office of Consumer Credit Commissioner
Address: 2601 N. Lamar Blvd. Austin TX 78705
Phone: (512) 936-7600
Fax: (512) 936-7610
http://www.occc.state.tx.us/ |
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aminah0529
Joined: 23 Oct 2007
Posts: 415
Debtcc Points: 3290
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Posted: Mon Oct 29, 2007 8:38 pm Subject:
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they are all 3 storefront. I have read the law for the state of Texas but sorry don't understand. I am thinking about putting stop payment on these and then closing my account. need some more advice..
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fitztex
Joined: 29 Oct 2007
Posts: 17
Debtcc Points: 538
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Posted: Mon Oct 29, 2007 8:42 pm Subject:
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Before you close your bank account due to payday loans eating away at your paycheck, please read this.
Some banks have a policy regarding ach transactions that allows them to force open closed accounts if any ach transactions go through within a certain time frame after the account is closed. This can leave you owing a legal bank $1,000's and reported to chexsystems, instead of owing barely legal (or not at all legal) payday loan companies. Not a good thing. Ask your bank what their policy is on ach transactions on closed accounts before you close the account. It's best to go in person and talk to a branch manager.
If your bank does have this policy, tell them your situation. Don't be embarrassed. Take letters with you showing that you have revoked authorization for each of your payday loan companies to debit your account. Tell the bank to put your account on deposit only, an ach block, or a hard hold before they close the account. Your bank can do one of those, don't take no for an answer. This will prevent any payday loan ach's from reopening the bank account.
It'a always best to close your bank account. Leaving it open gives ways for the payday loan companies to continue to take money out. These companies have many different dba's, so blocking them won't work. They will also produce paper checks and run them through your account. Closing the account is the best way to prevent these companies from taking money out of your account.
Some state laws do allow for prosecution if you close your bank account, but that is usually in cases of fraud. But it's always best to check with your state's attorney general or department of financial institution before you close your account. You want to make sure you are not causing more headaches!
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aminah0529
Joined: 23 Oct 2007
Posts: 415
Debtcc Points: 3290
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Posted: Mon Oct 29, 2007 8:43 pm Subject:
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have you tried to contact the store first and talk to them about your situation? they might be willing to work with you.
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aminah0529
Joined: 23 Oct 2007
Posts: 415
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Posted: Mon Oct 29, 2007 8:53 pm Subject:
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yes, I have asked them to work with me but they refuse! One told me that they will take me to court. I just don't know what to do. I am going to the bank tomorrow to talk with the branch manager. My husband wants to put stop payment on the loans first then close out the account.
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fitztex
Joined: 29 Oct 2007
Posts: 17
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Posted: Mon Oct 29, 2007 9:09 pm Subject:
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I also would like to know if these pdl are legal? How do I find out? What all can they do to me if I just don't pay them at all?
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fitztex
Joined: 29 Oct 2007
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Posted: Tue Oct 30, 2007 7:13 am Subject:
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First off, do you have the contracts still? Please look at them and see if the words "Credit Service Organization" is anywhere on the paperwork. This would mean that the company is operating as a CSO, and that the laws above would NOT apply to them. Most storefronts in Texas operate as CSO's to avoid the laws.
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goudah2424
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Posted: Tue Oct 30, 2007 8:32 am Subject:
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yes, on 2 of them it has CSO and on the other one it has ACSO. What does all this mean?
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Posted: Tue Oct 30, 2007 8:37 am Subject:
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I wonder what all they can do to me?
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fitztex
Joined: 29 Oct 2007
Posts: 17
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Posted: Tue Oct 30, 2007 8:39 am Subject:
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This means that they are all Credit Service Organizations, and the laws posted above don't apply to them.
| 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:
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. |
_________________
How I make some extra cash
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goudah2424
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Posted: Tue Oct 30, 2007 8:42 am Subject:
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so what does all that mean goudah? im curious.
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aminah0529
Joined: 23 Oct 2007
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Posted: Tue Oct 30, 2007 8:46 am Subject:
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ok read this but sorry I just don't understand this! I must be stupid or just can't cope right now the way I feel! but legally what can they do to me if I just put stop pay and close out my bank acct.?
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fitztex
Joined: 29 Oct 2007
Posts: 17
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Posted: Tue Oct 30, 2007 8:58 am Subject:
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No, you are not stupid! Don't even say that crap!
A CSO is pretty much a slick way for these businesses to get around any consumer protection laws. It's crap, but it's legal for them to do this.
Technically, they are not funding the loan to you. They are "hooking you up" with the loan company, and will service the loan for that company. You only deal with the CSO.
What this means for you is that these loans are going to be legal debts. Legally, if you don't pay, they could sue you, win a judgement, and garnish your wages or attach your bank account (depending on what your state allows). This would also show up as a judgement on your credit report.
But you can close your bank account. Just be sure to keep up communication with the companies, and set up payment plans with them. Don't agree to more then you can reasonably afford to pay, because if you default on a payment plan it's much harder to get them to ever work with you again.
_________________
How I make some extra cash
I earn at least $20 extra every month doing offers. And you don't have to pay a cent.
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goudah2424
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Posted: Tue Oct 30, 2007 9:00 am Subject:
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I'd actually recommend that you close your account. At least that way the rollover fees stop, and you can make arrangements to pay down the balance. Otherwise the cycle just continues . . . .
_________________
How I make some extra cash
I earn at least $20 extra every month doing offers. And you don't have to pay a cent.
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goudah2424
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