Legal vs Illegal

i'm not sure about Maryland Laws but good advice is on its way!

Thanks!!!!

In order to get better advice, you should also list whether each one is internet or store front, how much you originally borrowed from each, and how much you have repaid so far on each.

I will tell you World Wide Cash, Payco, United Cash Loans, and Impact Cash are not licensed in Maryland. They are also ILLEGAL.

They Are All Internet... Not Sure Of How Much Paid So Far


Worldwide Cash borrowed $200
Payco borrowed $200
Impact Cash borrowed $300
CashNet USA borrowed $550
United Cash Loans borrowed $200 or $300
Cash Advance USA $200
First National Funds/Discount Cash Advance $200 originally but they auto renew and redeposit
Pay Day Loan Yes $300 ?

i think MD its illegal to issue a pdl

Legal Status: Prohibited

Citation:
Consumer loan act applies. Md. Code Ann. Com. Law II ???? 12-301 et seq.

Small Loan Rate Cap
2.75% per month; 33% per year.

Where to Complain, Get Information:
Regulator: Maryland Commissioner of Financial Regulation
Address: 500 North Calvert Street Suite 402 Baltimore MD 21202
Phone: (410) 230-6100
Fax: (410) 333-3866
Regulatory Contact: Michael Jackson Director, Regulatory Policy

and it would be of help if you could give us how much you have paid so far on each one, and in the meantime you should read the sticky on closing your bank acct and what to do next at the top of the page!

payday loan yes is extremely illegal and a pain is the ars!!

Cash Net USA is a legal CSO in Maryland. PDL's are prohibited, but CSO's are legal.

To check and see if the other companies are legal you would have to check and see if any of them are operating as a Credit Service Organization.

What is a Credit Service Organization and how does it differ from a PDL.

Roughly, Here is what I owe to the PDLs

Payco $299.00
World Wide Cash $289.00
Impact Cash $390... They say $490
CashNet USA $683.00 ?
First National/Discount $530... They say $795
Pay Day Loan Yes $455.00
United Cash $375
Cash Advance USA $250

I believe those figures are accurate. I closed my bank account back on 7/10 so I have not paid any fees, extensions, etc to any PDL... Previously I paid more than half of my paycheck in fees and extensions. I have obtained help from PDL Assistance but I am very curious to know how many are not legal vs illegal

I don't think any of yours are licensed/legal, unless as Goudah said, they are operating as CSO's.

Goudah stated that CashNet USA operates as a CSO is possibly the only one unless the others are CSOs

RE the PDL's; please contact the Maryland Office of Financial Regulation as listed in the above e-mail; they've been a great help to me w/ my PDL's. Good luck!

well yeah cash net is legal, the rest are not, i dont think

i know for sure, illegal are....

pdl-yes, united cash, first national/discount(pdl-yes)

Yeah, Cash Net USA is the only one acting as a CSO.

[quote]What is a CSO Credit Services Organization

In essence, a CSO or Credit Services Organization is defined by the Texas Credit Services Organization Act (Section 393 of the Texas Finance Code) as an entity or person that provides one of the following services:

1. Improving a consumer's credit history or rating
2. Obtaining an extension of consumer credit for the consumer
3. Providing advice or assistance to a consumer regarding the previous two services

An important aspect of the CSO or Credit Services Organization model is that there IS NO LICENSING required by the state! CSO's are required to "REGISTER" with the Secretary of State, they are NOT licensed, AND THEIR FEES ARE NOT REGULATED.

How does the CSO Credit Services Organization work with payday loans?

The CSO Credit Services Organization operates as a broker, much as they did when partnering with the banks (payday loan bank model). The Texas Credit Services Organization Act (CSOA) allows the payday loan lender to register as a CSO and act as a loan broker. Thus, the CSO, previously a payday loan company, can make loans via consumer lending companies that are UNREGISTERED and UNLICENSED. The CSO Credit Services Organization acts as a broker for the consumer in need of funds by issuing a "letter-of-credit" on behalf of the consumer to a lender. This third-party unregistered lender funds the "loan" brokered by the CSO "broker".

Typically the CSO Credit Services Organization collects 3 fees:

A referral fee for referring the consumer to the unregistered, unregulated lender that actually funds the "loan". This is not stipulated by any law but is currently $20 to $30 per $100
An application fee for filling out the CSO documents; typically $10 per $100

The interest on the "loan"; Texas state law caps this at $10 per $100.

The CSO Credit Services Organization model arises from a U.S. Fifth Circuit Court of Appeals opinion, in Lovick vs. Rite Money, which held that payments to a registered CSO loan broker could not be treated as interest.[/quote]

i've been paying on several pdls n da state of florida and its taking forever to pay them off r they even legal n florida

Hi Dorothy,
Florida does have some companies that act ac CSO's which would make them legal. Can you please tell us:
the company name
internet or store front
how much you borrowed
how much you have paid to date including fees