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Debtconsolidationcare.com - the USA consumer forum

Payday Loan Relief

Date: Tue, 10/28/2008 - 11:56

Submitted by anonymous
on Tue, 10/28/2008 - 11:56

Posts: 202330 Credits: [Donate]

Total Replies: 5


Please can someone help me?!!!! I live in Texas and after my husband from laid-off I was desparate to cover all our essential bills and I resorted to PDL's. I have the following internet PDL's:

Worldwide Cash - $200.00
Premier Pay - $200.00
United Cash - $300.00
Fast Money - $400.00
Loan Shop - $300.00
NLS Cash - $325.00
Speedy Cash - $500.00
US Fast Cash - $300.00
Northway - $300.00
PayDay Yes - $500.00
Centyrion - $500.00
Good Times - $300.00
Cash Banc - $500.00
CashNet USA - $500.00
UpFront Cash - $400.00

Obviously, you can see that I can not keep up with this madness and can only pay the interest and fees every payday. Can someone help me formulate a plan to get out of the downward spiral that I am in? I bank with Chase, but I have not closed the account yet.

I have been reading various posts and you seem to provide benefical information and most importantly, hope for others in my situation. I have thought to use a PDL Consolidation company, but I just wonder if I would just be throwing good money after bad. Any help would be most apprciated!!

Tess


Hi Tess,
I am going to post the law's for Texas, if I am not misstaken a PDL company must be licensed in Texas to lend to the residents. I will check your list to see who is & isn't licensed.
Quote:

Texas State Information

Legal Status: Legal

Citation:
7 Tex. Admin. Code ???? 1.605; Tex. Fin. Code Ann. ???????? 342.251 et seq. and 342.601 et seq.

Loan Terms:
Maximum Loan Amount:
Loan Term: 7-31 days
Maximum Finance Rate and Fees: $10 per loan + 48% annual interest
Finance Charge for 14-day $100 loan: $12
apr for 14-day $100 loan: 309%

Debt Limits:
Maximum Number of Outstanding Loans at One Time: Not Specified ($500 aggregate loans outstanding to all licensees)
Rollovers Permitted: None (if renewal charge is less than maximum interest rate permitted; otherwise convert to declining balance installment note)
Cooling-off Period:
Repayment Plan:

Collection Limits:
Collection Fees: Not Specified
Criminal Action: Not Specified

Where to Complain, Get Information:
Regulator: Texas Office of Consumer Credit Commissioner
Address: 2601 N. Lamar Blvd. Austin TX 78705
Phone: (512) 936-7600
Fax: (512) 936-7610


Here is some additional info for you:
Quote:
Quote:

I hope the information below will help you.
You are only obligated to pay back the principal amount you borrowed from an unlicensed/illegal Internet Payday Lender.

What should you do?
Close your account asap, if you are unable to close your account, go into your bank and ask to speak with the Branch Manager, tell him/her you need a hard debit block placed on your account immediately! Explain that you are revoking ACH authorizations from unlicensed/illegal companies, and have learned these companies are notorious for ignoring revocation, therefore it is important to BLOCK any withdrawal attempts on your account to protect your interest. This is your privilege, do not accept no for an answer. The following link will provide you important information regarding closing accounts. CLICK HERE

What next?
AFTER your account is secure send each pdl (the unlicensed and illegal) an email similar to THIS (please scroll down to locate letter template). Tailor this letter to your needs, and try to write it with the same basic concept in your own words. You will need to research and locate email addresses/physical addresses if you don't already have them, I suggest that you type the name of the pdl (example: "oneclickcash address") in the search box in the upper right hand corner of this forum. You may also search for addresses HERE at the Better Business Bureau.

File complaints: Most of the time, you can file a complaint online with the following, I encourage you to follow through with doing so, you will need to search the Internet for your state Attorney General's website, however, here are links to file complaints for the FTC, Online complaints: Federal Trade Commission., and the BETTER BUSINESS BUREAU.

Keep in mind that you may not receive a response for days, or even weeks, or, you may receive harassing and threatening phone calls. I have found the best way to deal with this is not to respond or reply, simply hang up.

Side note: If you have paid an illegal/unlicensed payday lender above and beyond the principal amount you borrowed, it might be a good idea to demand a refund and a paid in full letter/receipt. You may or may not get one or both. It still doesn't hurt to include that tidbit in your letter.


lrhall41

Submitted by dawnlango7 on Wed, 10/29/2008 - 13:09

( Posts: 1147 | Credits: )


Hi Tess,

I am working on your list, so far the only one I can tell is legal is CashNet USA. In texas some of the companies operate as CSO's, I will attach some info about them as well.

United Cash Loans is not legal
Northway is not legal

I am not sure about the other companies, I am still working on them, but I may not be able to get back to the list until tomorrow morning, but if I don't I'm sure someone else will also be able to help out.


lrhall41

Submitted by dawnlango7 on Wed, 10/29/2008 - 14:01

( Posts: 1147 | Credits: )


Quote:

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:

Improving a consumer's credit history or rating

Obtaining an extension of consumer credit for the consumer

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.



lrhall41

Submitted by dawnlango7 on Wed, 10/29/2008 - 14:02

( Posts: 1147 | Credits: )