FCBA and EFTA laws: Protection from loss of credit cards

Technically the EFTA only allows you to revoke ACH authorization on "recurring" payments, like a gym membership. It's not clear if the refinances built into most payday loans fit the definition of "recurring." CNUSA takes the position that they aren't and they notify you of this in writing.

Bear in mind that CashNetUSA is a legal lender, meaning they get licensed everywhere they make loans, unlike most internet lenders. Unless you're planning to file bankruptcy, you should contact them to make a payment arrangement. Most of the advice on these boards is about illegal (unlicensed) ipdls and won't apply to them.

I have searched on the MD website for them to see if they are licensed and as far as I can see they are not licensed in MD for anything. I checked CashNet USA and Cash America. I'm going to call the MD Financial Regulation to verify if in fact they are licensed. If they are not licensed, then that means they are in fact illegal correct?

I did call the MD Financial Regulation and they are not licensed under CashNet USA or Cash America.

What should my next step be? They are not answering my emails. And on there website it says they are a member of CFSA, so they should honor my request for a EPP right? I got a $750 loan with them and I have paid them $942.26 and they say I still owe them $494.51. If I send them the letter and laws from MD and since they are not registered in MD and they still considered legal?

Also, I see that on their website it says that they are a BBB accredited business but when I search for them on the BBB website it says that they are not and that they have a unsatisfactory rating with them. So if I complain to the BBB about them will that give me some leverage as well and them not being licensed to lend in MD?

that's funny,CASHNET USA is usually licensed where they lend.
i see,i'm sure pdl's are prohibited in MD.therefore it might not be CASHNET USA .check your bank statements what shows up as the name debiting.it might be CASHNET500.they are illegal
everywhere.please check your bank statement.

Actually all the debits say Cashnet USA but the actual deposit says NCP Payday Adv. Who are they? I never noticed it before.

I actually did find their license in MD. It is under Cashnet CSO of Maryland, LLC. So I know that I have to pay them the balance, so I am able to do an EPP right and have my account settled and paid in full with no additional fees or charges?

this doesn't look the CASNET USA.they would have deposited under there name.if this was CASHNET USA they would be more willing to work with you.i noticed that there is a cashnet that isn't legal.they use CASHNET USA to justify there actions.i
doubt that it was THEE cashnet usa.

They could be operating as a CSO (Credit Service Organization), in which case they are exempt from the payday loan laws. The only thing that makes me wonder is, in their email they pretty much made mention to the fact that they're a payday advance company:
Quote:

Whoops, I posted this at the same time you were posting, so at least now we know they're a CSO. The thing is, they are 100% legal in what they charge, so it's doubtful that the interest and fees will stop, even if you can work out a payment plan with them. I still find it interesting that they specifically said in their email: "payday advance funds". :?

so MD like TX allows these places to skirt the pdl's laws by going by CSO'S.that's a shame. :(

Yes, it's a shame!

I'm dealing with cashnet right now. They keep trying to debit my account as well. I had payment arrangements set up with them through my debt management program and they stopped bothering me for awhile. I was late on one of my payments cause I was low on funds and wouldn't you know the day I got paid they went in and tried to pull the full amount. I quickly called the customer service line and explained to them the situation and this company had no authorization to debit my account. Since the transaction was only memo posted they were still able to place a stop payment and they didn't even charge me for it. I told cashnet if they tried to pull something like that again I was going to file a fraud case through my bank.

Well according to the CFSA website:

"If you [the customer] are unable to repay your advance when due, you may opt in to an EPP to pay the outstanding advance at least once in any twelve month period. Any outstanding fee will be included in the amount subject to EPP. "

and

"You may pay the transaction balance in four equal payments coinciding with your periodic pay dates. "

So they HAVE to set up the payment plan with me and it must be 4 equal payments to pay off the entire balance.

So right now, I'm still waiting on a response from them.

PinkLady, how long did it take for them to contact you? Were you in an EPP and did they stop all additional fees, etc and have you pay on your owed balance only?

My debt management program sent them a proposal. They agreed to $105 a month to clear up my balance. They kept calling me until an agreed upon amount was made through my program. They didn't accept the first proposal of $65 a month. I will have them paid off in four months. I couldnt afford to pay them in 3 or 4 installments. Yes they did stop the additional fees. The only fee that was added to my total was a $10 nsf fee which I can handle that.

And also since NCP Payday Adv is obviously a payday loan, then technically what I do have is a payday loan and not an installment loan, and Cashnet USA did not give me any money. So does that make it illegal?

Thank you for contacting us to inquire about how you can pay off your balance. The payment plan we can offer per your request is below. By the way, we DO NOT do business by mail. This is an online based payday loan company. Our business is done by either phone or via email. Your may send a money gram, western union payment, or credit/debit card. Please confirm payment method. Thank you.

*PAYMENT ARRANGEMENT CANNOT BE ALTERED OR CANCELED*

$164.84 ON 10/17/08
$164.84 ON 10/31/08
$164.83 ON 10/14/08

To confirm your agreement to this payment plan, please reply to this email stating that the terms are acceptable. You must include the original email with the terms to which you are agreeing in your response and specify your payment method.

PAYMENT METHOD
- Bank Account
- Credit/Debit Card
- MoneyGram
- Western Union

If you are paying via credit card, you will need to call our Collections Department at(888)801-9078 to set up payment arrangements.

Collection procedures will continue until an acceptable payment arrangement has been made.

If you have any questions or concerns, our collections team is available seven days a week via phone and email.

CashNetUSA Collections Department(888)801-9078 Direct Line(866)350-0110 Fax www.cashnetusa.com
Mon-Fri: 6am to 11pm CST
Sat-Sun: 8am to 8pm CST

Venecia J

I am willing to accept these terms but I thought I could pay it back in 4 payments according the CFSA. Is this true?

I guess I am going to have to accept these terms seeing that I just called CFSA and found out that they did not renew there contract with CFSA for 2008 so CFSA does not consider them to be members anymore. The logo on their website is last years logo.

So, so far, they are not members of the BBB and they are not members of the CFSA. So all who have loans with this company I suggest you pay them ASAP because it looks like everything on their site is a lie!

I would get one of those prepaid debit cards, don't give them your credit card or debit card number, no way! Also, insist on a confirmation number be sent to your email as soon as you make a payment, get the name and ext. # of the person taking your payment.

CashnetUSA offers payday loans in most states they do business in and yes they are licensed. They also offer CSO loans in states where payday loans arent available like TX and MD in these states your funds are received through a 3rd party bank in your state. So your funds go from their bank to a bank in your state (the CSO lender) and then to your bank. On your bank statement NCP will appear and not CashnetUSA. There are no state mandated payment plans or CFSA payment plans available for customers with CSO loans they usually default then work out a payment arrangment with collections. Most of the states they service are offered CFSA payment plans except those that already have their own existing state mandated payment plan like IL and CO. Note that installment loan customers are not eiligible for payment plans as most payday loan customers are. In IL a customer can elect to go into a deferred payment plan agreement before or after defaulting on their payday loan. However, the customer will still be debited on their scheduled due date, an NSF fee will be added onto the balance then a payment plan offer letter will be sent to the customer outlining 4 equal payments to be made on the customers next 4 paydays must be signed and returned. CFSAs work almost the same way except the customer must request prior to their due date and sign and return offer letter, if so the 4 equal payment start on the scheduled due date. Because IL, for example, has its own state payment plan CFSAs are not offered to IL customers.