Texas PDL help

Hi, I live in Texas and I have 4 payday loans and I feel like I can't get them paid down. Can you help?
The loans are with Payday Ok- 500.00
8/4/2007 ($75.71)
7/26/2007 ($91.79)
7/13/2007 ($125.00)
Payday One-500.00 Loan
Paid 78.00
Authorized Payday-300.00
Paid-90.00 Refinance fee each 2 weeks
Clearwater Loan-150.00
Paid 45.00 Each 2 week loan

Texas State Information here http://www.debtconsolidationcare.com/paydayloan/explain-pdls-laws.html

I am wanting to close my bank account. What all is involved in closing my account?
Thanks

Please read this thread:

http://www.debtconsolidationcare.com/paydayloan/close-account.html

It has all the information you need to know when you go to close your bank account.

Are these all internet loans? Or are some of them store front loans?

I think they are all internet, by the names, but let's see what Carrie says . . . . Texas does have some pdl's operating as CSO's too, so that may be a concern. But they dont' prosecute for closed accounts, so at least that isn't a worry.

Yes they are all internet loans

And Payday One does operate as a CSO in Texas. Great.

So that means that they are operating totally legally in Texas.

what about the other three? Payday OK, and Authorized Payday and Sandpoint Capitol LLC. I have no problem paying them off, I just can't do it all at once.

Payday OK is a Texas LLC. I'm not sure about the other two . . . . I did find this info though.


Texas doesn't have licensing for payday lending. The Consumer Lending License that is available is a better fit for finance companies (such as Citifinancial and Household Finance). A list of licensees should be available on the Texas Finance Commission's website. The AG doesn't handle licensing, so it wouldn't be on his site. His role in payday lending is litigation and enforcement on behalf of the Commission.

I am sorry, I don't understand what that means.

I just want to make sure that if I close my bank account, and send them money orders that I won't get in trouble.

goudah, does this mean that Texas is basically saying that these pdl's can "run with it" and charge what they want and the person has to pay it? And, can she close her account without prosecution?

On Texas pdl law, it states criminal action "not specified". What the heck does that mean? Not specified?

You won't get into trouble for closing your bank account.

What that means is that Texas doesn't specifically license for payday lenders. It's the same license a normal lender would get. The other issue is that in Texas their version of the UCC (Uniform Commercial Code) allows for Choice of Law contracts. Most of this is really of no concern to you, but it is something to keep in mind, because it seems that in Texas, an internet pdl could possible sue and win. In most other states they wouldntt win.

But yes, close the account and send in Money Orders. Sorry I confused you. Once you "defualt" on the loans, the fees should stop too.

Ok, sorry I am not so smart at this stuff, what does it mean to defualt on the loan? I just want to make sure I understand what I am about to do before i do it.

cari, defaulting means not paying on your loans anymore. Which you won't be doing if you've closed your bank account and they can not get their debits through any longer. It's actually better because they are more apt to "work with you" once you default, as they have no other way to get your money. And as goudah stated, the fees/rollovers/etc will stop.

Thank you so much for all of your help!!

cari, anytime! :D If you have any more questions or run into any problems, as you can see, we're all here to help you. So just post and we'll be here!

To defualt on a loan means you stop paying as agreed - You miss a payment.

When it says not specified it just means that there isn't a law that says they can or can't prosecute for closed accounts. But since a pdl isn't the same as a bad check, I would think they would have to have a specific law in place saying they could prosecute. Also, since in this case they are all internet loans and ACH transactions, the question is moot since no actual check were written.

Cari - Just be sure to read that thread I posted on the first page. It has all the info about closing your account, and some stories about why it's so important to do it that way.