Texas Law Help, Please!

You will find the Payday loan laws for Texas here (just select your state),
http://www.debtconsolidationcare.com/paydayloan/explain-pdls-laws.html

Does anyone also understand the rollover rule here as well...

thanks community....much appreciated.

Here's what purple is talking about:




It's saying no rollovers, but what does all that stuff after it mean???

Is the company you are trying to calculate a licensed pdl? Or a registered CSO? Most places in Texas are CSO's . . . .

To calculate per the pdl laws above you would use the following formula:

Amount x Interest x time

330 x (.48/365) = .433973

.433973 x time period in days

.433973 x 14 days = 6.0756

Total cost = $336.08

I am trying to figure out how much I should actually owe back to the 2 legal pdl companies. Both internet..Just want to make sure I am calculating correctly before sending them a letter/email that I have closed my account and want to set up arrangements.

thanks goudah...

A lender and a borrower may renew a loan, but the loan must be converted from a single payment balloon loan to a declining balance installment note.

Alternatively, the payday loan or deferred presentment transaction may be renewed without limitation to the number of renewals where the effect of the total amount of charge would not exceed the total amount authorized by ????342.252 having due regard for the amount of the cash advance and the time the cash advance is outstanding.

What that means is that if the finance fee is so small that renewing the loan would not take it over the max fee allowed, the loan can be rolled over. Example - You borrow $100. The fee is only $2.50. You could roll over the loan 4 times because the total paid in fees is still less then the max amount. Make sense?

What are the company names? If they are CSO's these laws wouldn't even apply.

Cash Net USA is a CSO in Texas.


Think Cash is an installment loan backed by a bank.

If those are the 2 companies you are thinking about, the laws posted above would not apply.

Cashnet USA and Think Cash are the ones I was talking about...

So what should be paid back to these companies as pertaining to the laws of Texas?

To date I have borrowed $4350 and paid back $4037. but with the new loan i just received have paid back 1 renewal fee.

Thank you, goudah! One of the pdls was stating some ungodly amount of over $500 for a $300 loan based on the Texas pdl law. However, I do believe CashNetUSA might be one that purplegirl is working on. I could be wrong. But, purple, if one is CashNetUSA, then they won't go by these laws. Goudah, what law would they go by? Their "own" since they are a CSO???

purple, we were typing at the same time! :lol:

Thing is, Federal law superseeds state law, and federal law says that fees charged by a CSO cannot be considered interest. So technically, Cash Net USA is charging you the low interest rate of only 10% per year. But they also charge a $25 per $100 fee (which is exempt from interest calculations). It is totally 100% legal.

What that means is that they are charging you correctly. Since they aren't a pdl, rollovers are allowed. CSO's are a virtually unregulated industry.

Since Think Cash is an installment loan, and backed by an FDIC Insured bank, the laws of Texas would not apply at all. It would be the laws of DE, where the bank is located, and DE has no interest rate cap.

I just need to pay what they asked....but my question was; since I have paid a one time renewal fee so far on my new loan, can that count towards the orignal borrowed plus fees?

Ok, I have $1400.00 plus $255.00 fee = $1655.00 to pay back. I have already paid so far $254.92. Do i still owe the total of $1655.00 or what?

Crap! :shock: So purplegirl has to pay what CashNetUSA and ThinkCash tell her to pay, correct?

Yeah . . . The fees paid so far won't count towards the balance because they are legal fees.

just needed to know, keeping my fingers crossed they will want to work with me on arrangements....

who knows...

thanks for your help...

purple, just let us know if you run into any problems. Of course our fingers are crossed for you!!!