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Posted: Mon Nov 06, 2006 1:44 pm Subject: Cashnet500

I recently defaulted on a loan with Cashnet500. I got a call this morning on both my cell phone and work phone with a message that "I know why they are calling" and that " I better call them back before 5pm or they would file". I called them back and told them I was filing chapter 7 bk, and that they would be hearing from my lawyer. Their reply? "WE WILL FIGHT YOUR BK AND HAVE YOU CHARGED WITH FRAUD!" I couldn't believe the nerve! This company is vicious and rude. I had to repeat my name several times during my conversation, and he even accused me of giving him a fake name! Right before he hung up on me he said "Good luck". After reading several other posts this seems to be closing of choice for these clowns.

So I just got off the phone with my states regulatory board, and imagine that! They don't have a license in the state I live in! (Oregon) I'm emailing copies of all correspondance I have with them to the board and they are going to look into fines for doing business without the proper license.

I would love it if they tried to take me to court. I was told that the loan in void since they don't have a license, and if they did try to take me to court, which they won't, they would be arrested for doing business without a license. Bring it on! And yes, I have paid them way more then I should've before I got smart and closed my bank account. Unfortunatly, Oregon's PDL laws don't go into affect until June 2007, so I wouldn't have a leg to stand on if they had a freaking license . . . .

Posted: Mon Nov 06, 2006 1:50 pm Subject: payday loans

Welcome to the forums. You did the right thing contacting someone who could do something about this company. They are RUDE and OVERBEARING. Stick around and let us know your progress. I would also file a complaint with the state Attorney General. You need all the people you can get on your side. Good Luck KYSIDE38

Posted: Mon Nov 06, 2006 2:17 pm Subject:

Now that the company knows that you are filing for bankruptcy, they will try to get a judgment against you. They will have to go through the legal way following the court procedure and get a judgment against you. If they manage to do this and you fail to respond to the court, they may get a judgment that won't be filed in your bankruptcy. So, you will have no options but to pay it. All I said is to be careful with this company and what they intend to do next. They went crazy when you told them about your filing bankruptcy and knowing that they won't get anything from you. Be alert on them.

Posted: Mon Nov 06, 2006 2:40 pm Subject:

So, what should I do? I won't be filing until the end of the month . . . But to get a judgement wouldn't they have to show that they are licensed? The guy I talked to at the Oregon Banking Regulators said they had no license under any of the names they do business as. To sue me for the money wouldn't they have to do that in Oregon court?

Posted: Mon Nov 06, 2006 2:44 pm Subject:

I just looked up Oregon's pdl laws and unfortunately there is no limit on the amt. of interest or the apr for a 14-day pdl in your state. But, also take into account that Cashnet is not licensed in your state either.

You mentioned that you are filing bankruptcy, but just out of curiousity, how much did you pay to Cashnet 500 in finance fees before you defaulted on the loan, and how much was the loan for? If the finance fees you've paid are equal to or more than the principal of the loan, I would consider them paid.

If this is the case, you can send them a letter via certified mail/return receipt requested and note the total paid and state that you want the acct. marked as "Paid in Full." Advise that if they are not willing to cooperate, you are in the process of filing complaints against them with the Oregon AG, BBB, OR Banking Regulator. They seem to be a bit more willing to deal with you if they know you've filed complaints. I will pm you the contact I have there that seems to be semi-reasonable and may cooperate with you.

If no finance fees were paid before defaulting, then let the acct. be sorted out in your bankruptcy as you mentioned.

Posted: Mon Nov 06, 2006 3:02 pm Subject:

I had a loan for $350, and paid them 4 payments of $105, for a total of $420. Yeah, I know Oregon doesn't cap PDL interest, they actually just passed much tougher regs, but they don't go into effect until June, 2007.

Posted: Mon Nov 06, 2006 3:05 pm Subject:

Goudah2424, if they file for judgement against you before you file at the end of the month (I highly doubt they will try, but if they do, they wouldn't get a judgement that fast, it takes time to get court dates etc...)If they did, you can just put that judgment in your bankruptcy.

Posted: Mon Nov 06, 2006 3:05 pm Subject: cash net

I agree with Tiffany you have paid them enough. I would send them a letter demanding paid in full status. Good Luck Kyside38

Posted: Mon Nov 06, 2006 3:15 pm Subject:

But wouldn't they have to file in Oregon? Or can they file anywhere?

Posted: Mon Nov 06, 2006 3:41 pm Subject: Litigation

They would have to file in your state using your courts.

They will have to hire a lawyer to litigate in a state they are not licensed in.

It is not cost effective for them to chase you down for the excessive fees you have already paid.

Posted: Mon Nov 06, 2006 3:45 pm Subject:

I was also told by the banking regulators that they have no license, so if they showed up in an Oregon court they would be arrested, and that the PDL would know that. He said out of every story he's heard NOT ONE unlicensed lender ever tried to go through the courts for money owed. So should I press for a paid in full, or just leave it to the BK?

Posted: Mon Nov 06, 2006 5:23 pm Subject: cash net

Either way it will be taken care of. I would include in bankruptcy just to be safe. In the meantime I would hound them to no end. Asking for paid in full. Good Luck KYSIDE38

Posted: Mon Nov 06, 2006 5:51 pm Subject:

GOUDAH - check your PM inbox

Posted: Mon Nov 06, 2006 6:29 pm Subject:

They are also known as Global Payday Loans but I doubt they are licensed under that name either. They claim to be licensed in Utah and have told consumers they only have to follow Utah laws. This is not true because many states require licensing in the consumer's state as well. Also, the loan originates in the state of the consumer. Good luck Smile

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