more than half my paycheck
Date: Thu, 11/06/2008 - 06:38
Any suggestions or help would be appreciated.
I hate to say this but the only way to stop this is by securing
I hate to say this but the only way to stop this is by securing your account. Forget the questions, say it was fraud if you have to (ironically, it ended up happening to me anyway). There is really no way for them to work with you until their funds are cut. You can put it on limited status. What state are you in? What companies did you borrow from? How much was borrowed, how much was paid? These loans might not even be legal!
Hi jaded, I was in the same situation as you, every month I w
Hi jaded,
I was in the same situation as you, every month I was paying about $2200 in fee's to my pdl's, that was actually both of my paychecks. There is a light at the end of the tunnel though, if you can provide the following information we can help you out:
State you live in
Name of company
internet or storefront
amount borrowed
amount paid back in fee's, etc.
I am in FL. The ones I know off the top of my head are JVC Fundi
I am in FL. The ones I know off the top of my head are JVC Funding, Cash Star group, Loanshop and Impact cash.
I think the total borrowed is somewhere around $1500. I am not even sure how much has been paid in fees. All were done via internet.
I will post the laws' for FL in a second. They are one of the s
I will post the laws' for FL in a second. They are one of the states that has some pdl companies operating as CSO's. I will post that info as well.
Here are the law's for FL, I will find some info on the CSO's:
Here are the law's for FL, I will find some info on the CSO's:
[quote]Quote:
Florida State Information
Legal Status: Legal
Citation:
Fl. Stat. Ann. ???? 560.401 et seq.; Rule 69V-560.901-912
Loan Terms:
Maximum Loan Amount: $500
Loan Term: 7-31 days
Maximum Finance Rate and Fees: 10% + verification fee
Finance Charge for 14-day $100 loan: $15
apr for 14-day $100 loan: 390%
Debt Limits:
Maximum Number of Outstanding Loans at One Time: One
Rollovers Permitted: None (cannot rollover)
Cooling-off Period: 24 hours
Repayment Plan: Yes
Collection Limits:
Collection Fees: All charges imposed on the lender by any financial institution; lender not entitled to treble damages
Criminal Action: Prohibited
Where to Complain, Get Information:
Regulator: Florida Office of Financial Regulation
Address: Division of Securities and Finance, 200 E. Gaines Street Tallahassee FL 32399
Phone: (850) 410-9805
Fax: (850) 410-9748
Regulatory Contact: ,
Emails to and from the DFI:
Hello,
Do internet based payday loan lenders with no physical location in FL need to be licensed by FL to lend legally to FL consumers? I am trying to help a friend with a huge mess. She has several internet payday loans, and they are saying that they only have to be licensed in their state, and that they can follow the laws of their state, not FL's laws. What is correct? Any information would be very much appreciated!
Thanks!
Reply:
She can file a complaint through our website at flofr.com and under 'helpful information' click on file a complaint. Then click on
finance related and you can download the form. Or click on money transmitters and call the 1-800 number. The Office will review her complaint when received. All lenders must be licensed by Florida, regardless of location, however, the current payday loan laws in place do not address internet businesses. The department is currently looking at other laws to apply to them.
She may also wish to contact Legal Aid in her area, to determine what recourse she may have.
If you have further questions, please contact this Office.
Office of Financial Regulation
Pam Henley
Financial Speci alist
(850) 410-9805
What does this mean?
Internet based companies must be licensed by FL.
No Rollovers are allowed.
[/quote]
Quote:Quote: What is a CSO Credit Services Organization In e
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 |
Quote:Quote: What should you do? Close your account asap, if
Quote:
Quote: 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. |
I looked up the companies, I don't show any of them as being lic
I looked up the companies, I don't show any of them as being licensed in FL, but I'm not sure if they are acting as CSO's. Hopefully someone with a little more experience in FL will help.
how much did you borrow from each company? i had many out and t
how much did you borrow from each company? i had many out and this board really helped.
borrowed $300
Impact cash loan of $300 Have paid $ 575 so far (nothing on primary loan of $300)
Live in Noth Carolina CAN I STOP PAYMENT ON LOAN through my bank. contract says total of payments $455 they keep taking the interest $105 every month. They want full payment of $300 on top of what has already been paid.
