Question about laws in Texas...

Hi Perry! :-) Here are the laws regarding pdls in Texas (just select your state),

http://www.debtconsolidationcare.com/paydayloan/explain-pdls-laws.html
Is this a storefront or ipdl? I know that in SC, storefronts will come to your house if you are in default and they cannot reach you by phone. But, I'm not sure that they are allowed to go by your place of business. That seems like they are crossing the line. If they are storefront, have you tried contacting their corporate office?

Legal Mediation is another name for Bass and Assoc. They are liars. They are just trying to scare you into paying more then you owe.

You cannot go to jail, you cannot be arrested, you cannot get into any legal trouble from this company. Just ignore them. They are being invesigated by several state AG's, and are the worst of the worst when it comes to collection agencies.

Texas Law if it helps:

The use of criminal hot check prosecution is a powerful tool lenders employ to coerce borrowers into loan renewals. The Texas Constitution bans imprisonment for loan debt. In spite of it payday lenders employ threats of legal proceedings against defaulting borrowers. The Consumer Union report of 2005 in an effort to secure the legal rights of Texans came forward with a plea whereby pursuits or threats to pursue hot check collections from defaulters may be made illegal by the Legislature.

I am however, am NOT an Attorney, but this is the law I found.

Thanks to you all, it is a store front PDL that i borrowed from. Their corporate office stated that if it was turned over for collections that it was out of their hands. So I should be ok?

Well, I have payday loans unpaid from November of '06 and have not been arrested, taken to court or anything else. Just threatened to. I would say you are okay. Watch out for shady collections, but still try and repay.

Thing is, most storefronts in Texas are actually CSO's, not payday lenders. So different laws can apply to the transaction . . . .

So is that better or worse? What does that mean exactly?

CSO means Credit Service Organization. It is much worse, because there are virtually no laws regulating them, and because of a federal law that states fees paid to CSO's cannot be considered interest, they can bypass all the consumer protection laws set up to regulate pdl's.

If you have your contract it will state on it if the place is a CSO or not . . . . .

Since this is a storefront, which means perry has an actual check out with them, and they turn it over to collections, what would be the worst that can happen to him? Is this the illegal collection company calling him regarding it? I get concerned when it's an actual legal storefront with an actual check in their hand.

Yes, me too. I just dont want to have knock on my door by the county sheriff's office. Anyone know a lawyer I could ask?
Thanks!!!

I know. And because it is unspecified as to criminal action, it makes me a little nervous. Maybe someone will come along who is from Texas and has gone through a similar situation as you. Asking a lawyer might be a good idea. I don't know of one, but I'm sure that there are probably good ones who handle debts in your area. Maybe you could call around and see if you can get a free consulation.

Any of you out there a Lawyer or maybe even a moderator that could help me answer this question. The collection company won't accept anything but the full amount.
Thanks,
Dwaine

perry, I'm going to pm goudah to see if she can help. Hang in there. We'll try to get an answer.

Goudah, help! Any further clarification would be appreciated.
Dwaine

I would call the regulators and ask them:

Regulator: Texas Office of Consumer Credit Commissioner
Address: 2601 N. Lamar Blvd. Austin TX 78705
Phone: (512) 936-7600

I can tell you for a fact that Legal Mediation is a scam company, and any threat they make is illegal because they cannot go through with it.

it is a CSO Named Texas Loan Corporation. I just mainly need to know if Legal Mediation can have me put in jail. They do have a check that is half paid off.

Do not worry about Legal Mediation. They are not going to set foot in a courtroom. They are under investigation by several state's for their threats.

However, since this is a legal debt, I would try to contact the original creditor to try and set up arrangements to pay them off. Also, please contact the number i posted above. Legal Mediation can't do anything to you, but it could be possible for the original creditor to take some action.