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 Posted: Wed Oct 08, 2008 5:58 pm Subject: Response from Cashnet USA - what does this mean? |
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I sent the following email to Cashnet USA -
Also,
| Quote: | I hereby revoke any and all ACH authorizations with your company from debiting any of my personal accounts, per Federal law, Regulation E Section 205.10 Preauthorized transfers. I have closed my account with the Wachovia to protect my interest in this matter, per instructions from The Maryland Department of Finance. I also revoke any and all arbitration agreements and wage assignments I may or may not have signed with your company, I no longer authorize you, your company, or your affiliates to attach any part of my wages or contact my employer for your collection purposes. I have notified my employer about this matter so any attempts to do so on your part will be rejected.
Thank you for your prompt attention to this matter.
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Sent: Wednesday, October 08, 2008 11:49 AM
To: 'support@cashnetusa.com'
Subject: Loan #24629458
Importance: High
Due to some illegal activity on my checking account with Wachovia, I had to close my account. My balance with you is $494.51. Can you please provide me an address where I can mail payments to you? Also, I will not be able to pay the full amount so can I please be set up with an EPP? Thank you and I look forward to hearing from you. |
And this is the response I got from them:
| Quote: | At CashNetUSA, we understand how important it is to our customers to have access to payday advance funds as soon as possible after an advance is approved. That's why we fund our advances through an electronic funds transfer provided by the automated clearing house ('ACH') network. We also provide for repayment of advances via ACH. Because our advances are single payment advances (that is, we advance a sum of money that is to be repaid in a lump sum), we are permitted to require ACH repayment in accordance with the Federal Electronic Funds Transfer Act ('EFTA').
Under the EFTA, a lender cannot require a consumer to repay a loan by means of preauthorized electronic funds transfers as a condition to approving the consumer’s loan. The term “preauthorized electronic funds transfer” is narrowly defined by the EFTA to mean “an electronic funds transfer authorized to recur at substantially regular intervals.” As explained by the Federal Reserve Staff in its official commentary to the EFTA, “Creditors may not require repayment of loans by electronic means on a preauthorized, recurring basis.” 12 C.F.R. 205, Supplement I – Official Staff Commentary, at 10(e) (1) (Loan Payments). As a one-time payment, the repayment of a CashNetUSA advance is not encompassed by the EFTA’s definition of “preauthorized electronic funds transfer,” and is therefore permitted under the EFTA.
If you have any questions or concerns, our customer support team is available 24 hours a day, seven days a week to help answer all your questions via phone, email or online chat." |
What does this mean? It doesn't answer anything I ask of them.
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kawgirl23
Joined: 06 Oct 2008
Posts: 31
Debtcc Points: 501
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| Posted: Wed Oct 08, 2008 7:32 pm Subject: |
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Technically the EFTA only allows you to revoke ACH authorization on "recurring" payments, like a gym membership. It's not clear if the refinances built into most payday loans fit the definition of "recurring." CNUSA takes the position that they aren't and they notify you of this in writing.
Bear in mind that CashNetUSA is a legal lender, meaning they get licensed everywhere they make loans, unlike most internet lenders. Unless you're planning to file bankruptcy, you should contact them to make a payment arrangement. Most of the advice on these boards is about illegal (unlicensed) ipdls and won't apply to them.
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FreakyFriday
Joined: 13 May 2007
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| Posted: Thu Oct 09, 2008 7:21 am Subject: |
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I have searched on the MD website for them to see if they are licensed and as far as I can see they are not licensed in MD for anything. I checked CashNet USA and Cash America. I'm going to call the MD Financial Regulation to verify if in fact they are licensed. If they are not licensed, then that means they are in fact illegal correct?
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kawgirl23
Joined: 06 Oct 2008
Posts: 31
Debtcc Points: 501
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| Posted: Thu Oct 09, 2008 7:38 am Subject: |
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I did call the MD Financial Regulation and they are not licensed under CashNet USA or Cash America.
What should my next step be? They are not answering my emails. And on there website it says they are a member of CFSA, so they should honor my request for a EPP right? I got a $750 loan with them and I have paid them $942.26 and they say I still owe them $494.51. If I send them the letter and laws from MD and since they are not registered in MD and they still considered legal?
Also, I see that on their website it says that they are a BBB accredited business but when I search for them on the BBB website it says that they are not and that they have a unsatisfactory rating with them. So if I complain to the BBB about them will that give me some leverage as well and them not being licensed to lend in MD?
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kawgirl23
Joined: 06 Oct 2008
Posts: 31
Debtcc Points: 501
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| Posted: Thu Oct 09, 2008 7:49 am Subject: reply |
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that's funny,CASHNET USA is usually licensed where they lend.
i see,i'm sure pdl's are prohibited in MD.therefore it might not be CASHNET USA .check your bank statements what shows up as the name debiting.it might be CASHNET500.they are illegal
everywhere.please check your bank statement.
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paulmergel
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Posts: 3582
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| Posted: Thu Oct 09, 2008 7:51 am Subject: |
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Actually all the debits say Cashnet USA but the actual deposit says NCP Payday Adv. Who are they? I never noticed it before.
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kawgirl23
Joined: 06 Oct 2008
Posts: 31
Debtcc Points: 501
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| Posted: Thu Oct 09, 2008 8:00 am Subject: |
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I actually did find their license in MD. It is under Cashnet CSO of Maryland, LLC. So I know that I have to pay them the balance, so I am able to do an EPP right and have my account settled and paid in full with no additional fees or charges?
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kawgirl23
Joined: 06 Oct 2008
Posts: 31
Debtcc Points: 501
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| Posted: Thu Oct 09, 2008 8:06 am Subject: reply |
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this doesn't look the CASNET USA.they would have deposited under there name.if this was CASHNET USA they would be more willing to work with you.i noticed that there is a cashnet that isn't legal.they use CASHNET USA to justify there actions.i
doubt that it was THEE cashnet usa.
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paulmergel
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| Posted: Thu Oct 09, 2008 8:08 am Subject: |
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They could be operating as a CSO (Credit Service Organization), in which case they are exempt from the payday loan laws. The only thing that makes me wonder is, in their email they pretty much made mention to the fact that they're a payday advance company:
| Quote: | | At CashNetUSA, we understand how important it is to our customers to have access to payday advance funds as soon as possible after an advance is approved. That's why we fund our advances through an electronic funds transfer provided by the automated clearing house ('ACH') network. We also provide for repayment of advances via ACH. |
If this is true, then yes, they are lending illegally to MD residents as PDL's are prohibited in your state. I'm only speculating here, so don't take my word for it. Perhaps someone else can shine some light on this subject.
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Online complaints: Federal Trade Commission.
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Shazzers
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Shazzers
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| Posted: Thu Oct 09, 2008 8:18 am Subject: reply |
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so MD like TX allows these places to skirt the pdl's laws by going by CSO'S.that's a shame. 
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paulmergel
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Shazzers
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| Posted: Thu Oct 09, 2008 8:27 am Subject: |
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I'm dealing with cashnet right now. They keep trying to debit my account as well. I had payment arrangements set up with them through my debt management program and they stopped bothering me for awhile. I was late on one of my payments cause I was low on funds and wouldn't you know the day I got paid they went in and tried to pull the full amount. I quickly called the customer service line and explained to them the situation and this company had no authorization to debit my account. Since the transaction was only memo posted they were still able to place a stop payment and they didn't even charge me for it. I told cashnet if they tried to pull something like that again I was going to file a fraud case through my bank.
_________________
ILLINOIS LICENSE SEARCH / CONSUMER CREDIT / GUIDE TO PAYDAY LOANS
http://www.idfpr.com/dfi/ccd/ccd_licensees.asp
ILLINOIS PAYDAY LOAN LAWS
http://www.paydayloaninfo.org/state_detail.cfm?id=IL
WISCONSIN PAYDAY LOAN LAWS
http://www.paydayloaninfo.org/state_detail.cfm?id=WI
WISCONSIN LICENSE SEARCH
http://www.wdfi.org/fi/lfs/licensee%5Flists/
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PinkLady
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| Posted: Thu Oct 09, 2008 8:35 am Subject: |
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Well according to the CFSA website:
"If you [the customer] are unable to repay your advance when due, you may opt in to an EPP to pay the outstanding advance at least once in any twelve month period. Any outstanding fee will be included in the amount subject to EPP. "
and
"You may pay the transaction balance in four equal payments coinciding with your periodic pay dates. "
So they HAVE to set up the payment plan with me and it must be 4 equal payments to pay off the entire balance.
So right now, I'm still waiting on a response from them.
PinkLady, how long did it take for them to contact you? Were you in an EPP and did they stop all additional fees, etc and have you pay on your owed balance only?
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kawgirl23
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PinkLady
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| Posted: Thu Oct 09, 2008 8:54 am Subject: |
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And also since NCP Payday Adv is obviously a payday loan, then technically what I do have is a payday loan and not an installment loan, and Cashnet USA did not give me any money. So does that make it illegal?
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kawgirl23
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