cashnet usa help

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.

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.

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.

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.

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

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.

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

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.

Good info Frog!

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!

Check out their website cashnetusa.com, the only service they offer is for a PDL.

Check out this fee schedule:
http://www.cashnetusa.com/fee-schedule-pennsylvania.html
Eight day term loan is 1140.63% WTF?!

sounds right unfortunately... :shock:

I have a .45 cal Glock model 36 pistol. I will shoot myself in the freak'n head before I agree to a loan like that.

Wow JCMET that is scary. I am glad you dont take out payday loans but yikes that would be an extreme deterrent!

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 **** kit done on myself. (when I say myself, I really mean my wallet/checking account)

[color=Red]****Adult term removed - Jason[/color]

I think I will pay the remaining $300 plus the pa fees.

On another matter on this site it was reporting usfastcash was illegal but when I called OK's AG office they said they were legal. I borrowed $300 from them and paid back $360 I'm trying to get a PIF from them but they are not budging.

Cash Net USA is a CSO in some states. It's a way for them to legally get around payday loan restrictions. If you look at their website and look at the info for Florida or Texas you will see that Cash Net USA is not the lender.

For PA, Cash Net USA is using it's Nevada license.

As far as Cash Net USA goes for PA, they are legal. The fees they charge are considered legal, and the contract would hold up in court, as the info about internet lenders is posted on the PA Dept of Banking's website under laws and regulations, interpretive letters.

Internet companies are allowed to use the laws of their state because PA's laws refer only to businesses "in this commonwealth". The state has interpreted this to mean that the laws only apply to businesses physically located there.

Be that as it may, I think that if a state doesn't allow internet PDLs then that should extend to any PDL taken in that state, not where the business is located.

Of course then again I also think that all states should make pay day loans illegal as it all appears to me as predatory lending at it's worst. To put it bluntly I think that pay day loans suck. That's why I have never taken one out, never will take one out, and I will always openly advocate against it.

PA does allow internet pdl's, that's the thing. They don't allow storefronts.

I agree they do suck, and PA should do a better job of protecting it's consumers. They took a great step in prohibiting storefronts, then left a huge hole with the internet. It needs to be changed, but as it is now, it's perfectly legal for an internet payday loan company to lend to PA consumers, as long as it is licensed in another state.

I have read somewhere that Pa does have some legislation in the works to amend the law. If I can find it I will post it.

Ineresting that a law firm wants to sue for internet violation of PA law. From Craigs list:
The law firm of Dessen, Moses & Rossitto sues Internet payday loan lenders that charge exorbitant interest rates and fees in violation of Federal or PA laws for refunds of interest and/or fees paid. If you got a payday loan through the Internet that you think may violate the law, please fax details and relevant documents to 215-564-2879. Please be sure to include information on how you can be contacted. You may also e-mail the information to paydaylaw (@) gmail.com.
Dessen, Moses & Rossitto, Willow Grove, PA 19090

I'm a bit worried - So I went to their website and sent them an email. It came back undeliverable. This was to an email address with their own domain name. A lawyer using a free gmail account worries me . . . .

That is rather strange.

Yikes..and I didnt see them list a phone number for themselves, just a fax. Oh sure, fax over your info and "relevant" documents, which will more than likely include your personal data and banking info ( the loan application) to some unknown source of an attorney who uses a gmail account.

I've sent a few emails back and forth to try to get some more information. I'm on the fence . . . . I still think it's strange to use a gmail account for business, but if they are really looking at suing some unlicensed lenders, then I have to give them credit.

I'm dealing with these people.. I went to the bank and explained the situation and we closed the account, I had one pending transaction.. Apparently another transaction occured which allowed the old account to remain open. I keep getting bombarded with debits from the pdl's that I have.. So now I am getting extended overdraft fees...

I have tried to set up a payment arrangement to breakdown the $198.25 that I owe but they are being jerks. I did have one arrangement set up but I realized that it would stretch me WAY to thin.. So I emailed them with an alternative and they said they would accept it..

I just got off the phone with them and they said they will not break it down into 2 or more payments...

I don't know what to do...

Gouda, the attorneys may be using the gmail just for the craigslist post. Maybe they didnt want to overwhelm their office email. This sort of posting in craigslist is sure to draw a lot of email. Just a thought. You may be absolutely correct that it is a shady thing.

Sorry, last post was me. I thought I was logged in.

Yeah, I sent a few emails back and forth with them and they do seem legit. They are interested in talking with any PA residents who had/have loans with the following companies:

500FastCash
ameriloan
UnitedCashLoans
InstantCashLoanTill Payday
PaycheckToday
Quickest-Cash-Advance
MoneyByNow
Cash-Advance-PaydayLoan-to-1000

I didn't ask them how much it would cost to retain them, so I don't know if you would have to pay upfront or if they are going off a contingency fee or what, but it may be worth it for any PA people to give it a try.