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 Posted: Tue Jan 15, 2008 1:56 pm |
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Does anybody have any suggestions how I should reply back to CASHNET USA. I borrowed $600 and paid back $300. I told them I would pay back $360 more this includes PAY fees and I wanted something in writing for them to approve it here was their reply.
I never refused to pay back what I owe.
We are an INTERNET based company. When you applied for a loan with our company
there was no documentation filled out to receive the funds, why at this point
would you think that we as an INTERNET based company could provide you with
such documentation. Please contact us via PHONE so that we may resolve this
issue. Your account with us is more than 90 days passed due and you must contact
us immediately to set up payment arrangements.Your current balance is a
substantial amount of $ 950.00 this amount is due immediately. If you do not
contact us to make payment arrangements your account will be marked refusal to
pay and we will continue our collection efforts as it our right to do so.
If you have any questions or concerns, our collections team is available seven
days a week via phone and email.
CashNetUSA Collections Department
(888)801-9078 Direct Line
(866)326-5265 Fax
www.cashnetusa.com
Mon-Fri: 6am to 11pm CST
Sat-Sun: 8am to 8pm CST
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db
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| Posted: Tue Jan 15, 2008 2:04 pm |
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drillyboy....CashnetUSA is licensed in most states and operating legally. I recall that you are in PA and if they are licensed anyplace...they are legal and typically operate in line with state statutes.
Contact them by phone and work out an arrangement...chances are you will need to pay the $950 due to them being legal.
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volleyballmom
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| Posted: Tue Jan 15, 2008 2:10 pm |
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What state do you live in? Some states do not allow PDLs, if your state is one of them you would only be responsible for paying back the principle balance. Either way on a $600 dollar loan and you had paid $300, then it jumps to $950 that would be over 300% interest. Which would violate any usury laws for a state that even allows PDL's. First just let me know what state you live in and we'll take it from there.
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JCEMT
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| Posted: Tue Jan 15, 2008 2:19 pm |
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JCEMT...he lives in PA. In PA, PDL's only need to follow the laws of the state they are licensed in...they dont have to be licensed in PA.
CashnetUSA is legal...they typically charge $45/per $100 loaned =$270 in fees,plus the loan amount of $600. ...add on any NSF fees allowed per state PDL law.
Drillboy-refer back to your loan contract with them....if you paid back $300, you should only owe $650. How did you pay the $300?? Doesnt look like they are acknowledging that payment.
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volleyballmom
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| Posted: Tue Jan 15, 2008 2:23 pm |
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Yes, but PA usury law caps the interest though at (I think) 17% Regardless of what the agreement states that the person may have signed it cannot supersede state law.
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JCEMT
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| Posted: Tue Jan 15, 2008 2:26 pm |
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Actually, here it is:
Check cashers are specifically prohibited from making payday loans under Check Cashing Licensing Act of 1998, § 505(a). Otherwise, consumer discount company act applies. 7 Pa. Cons. Stat. Ann. § 6201 et seq.
$9.50 per $100 per year discount or 24% per year
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JCEMT
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| Posted: Tue Jan 15, 2008 2:28 pm |
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Here is more info....per an email one of our mods sent to the PA Dept of Banking.
Quote:
Pennsylvania State Information
Legal Status: Prohibited
Citation:
Check cashers are specifically prohibited from making payday loans under Check Cashing Licensing Act of 1998, § 505(a). Otherwise, consumer discount company act applies. 7 Pa. Cons. Stat. Ann. § 6201 et seq.
Small Loan Rate Cap
$9.50 per $100 per year discount or 24% per year
Where to Complain, Get Information:
Regulator: Pennsylvania Department of Banking
Address: Market Square Plaza, 17 N. Second Street Harrisburg, PA 17101
Phone: (717) 214-8343
Fax: (717) 787-8773
Regulatory Contact: Jim Keiser, Administrator of Non-Depository Institutions
http://www.banking.state.pa.us/banking/site/default.asp
Emails to and from PA Banking Dept
Hello,
I have a question about payday loans in Pennsylvania. Does the small loan rate cap of $9.50 per $100 per year discount or 24% per year apply to these loans? I took out a few on the internet and am trying to figure out how much I legally need to pay. For instance on a $200 loan would I be legally responsible for paying back only $248?
Thanks!
Response:
Dear Ms.:
The 9.5 discount and the 24 % simple interest refer to calculations that can be used by companies that are operating in Pennsylvania and are licensed under Pennsylvania’s Consumer Discount Company Act. With a number of exceptions, a lender that is located inside of Pennsylvania and who does not have any special lending authority (i.e., a special license or charter) who is making smaller loans not secured by real estate can only charge interest at a rate of 6% simple.
A lender that does not have a physical presence in Pennsylvania but who has lending authority from some other state can generally charge the interest rate and finance charges allowed by that other state.
The Department may or may not be reviewing this policy and I would not count on this e-mail as an interpretive opinion before starting any lending or business operations.
James Keiser | Administrator Non-Depository Institutions
17 North Second Street, 13th Floor | Hbg PA 17101
Phone: 717.783.8242 | Fax: 717.787.8773
jkeiser(at)state.pa.us | www.banking.state.pa.us
What does this mean?
There are no storefronts in PA. They are illegal.
Internet lenders can lend legally to PA residents as long as they are licensed in another state. They would need to follow the laws of the state in which they are licensed.
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volleyballmom
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| Posted: Tue Jan 15, 2008 2:35 pm |
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Alright cashnetusa.com:
CashNetUSA
P.O. Box 06230
Chicago, IL 60606
Legality:
Legal Status: Legal
Citation:
Ill. Comp. Stat. Ann. § 122/1-1
Loan Terms:
Maximum Loan Amount: lesser of $1000 or 25% gross monthly income
Loan Term: 13-45 days
Maximum Finance Rate and Fees: $15.50 per $100
Finance Charge for 14-day $100 loan: $15.50
apr for 14-day $100 loan: 403%
Debt Limits:
Maximum Number of Outstanding Loans at One Time: Two
Rollovers Permitted: None (cannot rollover)
Cooling-off Period: 7 days after 45 consecutive loan days
Repayment Plan: Yes
Collection Limits:
Collection Fees: One $25 NSF fee (Presentment limit = 2)
Criminal Action: Prohibited
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JCEMT
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| Posted: Tue Jan 15, 2008 2:50 pm |
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Cashnet is licensed as a CSO (credit service organization) in many places and is not governed by the laws that apply to payday lenders in those states. They are extremely careful about not violating any state laws wherever they lend. I challenge anyone to find where they lost a case in any state.
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frogpatch
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| Posted: Tue Jan 15, 2008 2:59 pm |
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Good info Frog!
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volleyballmom
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| Posted: Tue Jan 15, 2008 3:05 pm |
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If CashNet would not make themselves impossible to settle with they would be a pretty good compnay as far sa payday lenders go. They would send me settlement offers that were very reasonable but were expired by the time I got them. I would call them and some gut would sceam at me to pay 300.00 more than I owed. I would ask about the settlement and he would tell me that I nver got one. I still owe them money and want to work something out but they make it impossible. If you are reading this CashNet person PM me! Lets talk about rationality!
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frogpatch
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JCEMT
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| Posted: Tue Jan 15, 2008 5:05 pm |
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sounds right unfortunately... 
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volleyballmom
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JCEMT
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| Posted: Tue Jan 15, 2008 7:10 pm |
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Wow JCMET that is scary. I am glad you dont take out payday loans but yikes that would be an extreme deterrent!
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stargzr
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| Posted: Tue Jan 15, 2008 8:30 pm |
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That just means that I am never going to take out a PDL. Otherwise I'll have to go to the hospital afterwards to get a rape kit done on myself. (when I say myself, I really mean my wallet/checking account)
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