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 Posted: Sun Jun 01, 2008 1:35 pm Subject: Texas payday loan help |
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I live in Texas and have the following payday loans out.
Paydayon 450
Soniccash 500
Discount advances 450
I have a baby due next month. I have been in the cycle of taking loans and paying them for three years. I have always paid them on time. I have scheduled partial payments for tomorrow on all them. This will be the last time I can pay them for a while. Once all these payments clear I want to close my checking account and get a new one. I have the following questions if anyone can help.
I have bank of america, will they close the account permenately or will they allow the payday loan transactions to go through next mont?
They can't garnish my wages in Texas right?
What can I do to keep them from contacting my job.
Are there any other consequences I should know about in Texas for payday loan default other than bad credit?
Any help is appreciated
Thanks
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| Posted: Sun Jun 01, 2008 1:42 pm Subject: |
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Hang in there, help's coming!
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unclewulf
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| Posted: Sun Jun 01, 2008 11:36 pm Subject: |
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Hi,
Payday loans are legal in Texas. Here is the information on pdl lending in your state.
Hope the inputs help.
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tweetyturner
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| Posted: Mon Jun 02, 2008 1:05 am Subject: |
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Do they usually sue in texas for payday loans $500 or less? Is the cost really worth it for them?
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| Posted: Mon Jun 02, 2008 9:37 pm Subject: |
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How ofter do internet payday loan companies take people to court?
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| Posted: Tue Jun 03, 2008 1:37 am Subject: |
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Some states don't allow the pdl lenders to garnish wages, Texas is one of them. So, be rest assured that the payday lender can't garnish your wage.
To garnish your wage, they technically have to obtain a judgement against you. However, its very difficult to say what the lender might consider as a worthy amount.
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tweetyturner
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| Posted: Tue Jun 03, 2008 7:23 am Subject: |
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Most all payday loan lenders in Texas are actually CSO's . . . So the laws posted above would not 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. |
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goudah2424
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| Posted: Tue Jun 03, 2008 7:24 am Subject: |
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It looks to me like one of your loans is with Payday One. They are a registered CSO in Texas, so they are legal and can take steps to collect on the debt.
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goudah2424
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| Posted: Wed Jun 04, 2008 8:11 am Subject: Sonic |
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I too am in Texas. . . Payday One are VERY easy to work with. . . they will set up a payment plan for you. Sonic on the other hand WILL NOT, they in fact will tell you that you can't even mail them a payment. I just ignore them. Until they provide me with a mailing address they are not getting paid!!! I was in payday hell and I am OUT! Thanks to all who contribute to this forum!! You can do it too.
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utlonghornfan
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| Posted: Wed Jun 04, 2008 11:39 pm Subject: |
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What if they have to wait a few months before payment. What can sonic do to me?
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