Need help with payday loans
Date: Fri, 11/21/2008 - 10:28
Sagamore $300 loan 1st payment $90 due 12/5
Integrity - $300 - 1st payment $90 due 12/5
ACC - $400 - paid so far $400
Nevis - $300 - paid so far $540
KRRS - 2 loans $450 each paid so far $135 each
Cold Cash Direct Pay - $400 paid $600
GECC - $400 - paid $352
500fastcash - $500 - paid $300
Loanshop/Zurich - $300 - paid $1,710
Cash Today - $250 - paid $375
SSM - $300 - 1st payment due 12/5 - $90
Can someone please give me advice or help on how to stop this. All the amounts I have paid are the fees only - nothing toward principal. I'm to the point of not having a paycheck. Thanks for your help.
Hi, Here are the law's for Florida. There are some companies
Hi,
Here are the law's for Florida. There are some companies in FL that are acting as CSO's, I will paste that info in a moment:
[quote]
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]
here is some info on CSO's. I believe if you check your paperwo
here is some info on CSO's. I believe if you check your paperwork it will state if they are operating as a CSO. i will check through your list to see if anyone is legal. I will also post some additional info in a second:
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, i
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. |
Here is what I have found out about your companies, if I'm incor
Here is what I have found out about your companies, if I'm incorrect hopefully someone will correct me:
Sagamore - illegal - you owe $300
integrity - ? not sure - you owe $300
ACC - illegal - paid in full
Nevis - Illegal - they owe you $240
KRRS/Cash Today - illegal - you owe $315
Cold Cash - illegal - they owe you $200
GECC/Cash Direct - illegal - you owe $48
500fastcash - illegal - you owe $200
Loanshop - illegal - they owe you $1410
Cashtoday - illegal - they owe you $125
SSM - illegal - you owe $300
Here is a letter you can use to send to the companies, you need to change it around for your situation:
Quote:
To Whom It May Concern: After doing research on internet payday loan laws in the state of Connecticut, I have found that your internet payday loans are actually illegal. I have also found the following laws to be true applying to payday loans in the state of Connecticut in general: Legal Status: Prohibited Citation: Usury act applies or small loan act applies. Conn. Gen. Stat.???? 36a-563 Small Loan Rate Cap 30.03% apr or $17 per $100 up to $600; $11 per $100 up to $1,800; add-on interest. I have contacted the Connecticut Office of Financial Institutions and the Connecticut State Attorney General's Office regarding your internet payday loans and was informed they are indeed illegal in Connecticut and was advised to pay what is due according to principle amount only of the loan. To date, I have paid $525.00 DOLLARS on my $250.00 DOLLAR loan. The legal amount that could have been charged to my loan is the principal amount of $250.00 DOLLARS even if your internet pay day loan was legal in Connecticut. I have paid $525.00 DOLLARS on this loan by your debits of my bank account. Please mark this account as PAID IN FULL. I demand that any contact be made through US Postal mail or email only. I will need everything in writing to keep accurate records of all communication as per instruction from my state Attorney General's Office. I prohibit you or your affiliates to contact me via telephone at my place of employment or my home telephone number. I also prohibit you from calling my references listed on my loan. Once I inform you of this, you must stop the telephone contact immediately or you will be once again breaking the laws of the state of Connecticut. You are also hereby notified that I am revoking any voluntary wage assignment I may or may not have signed. I no longer authorize you, your company, or your affiliates to attach any part of my wages or contact my employer for your collection purposes. I am revoking your right to debit my checking account any longer. You, your company, or your affiliates are not authorized to debit my checking account at all. Please be aware that I have informed my financial institution of this situation and they will also be receiving a copy of this correspondence. Any further attempts at debiting my account will be rejected by my financial institution. I must also inform you that I have filed complaints with the Better Business Bureau, the Federal Trade Commission, and my state Attorney General's Office. I expect a response from your company no later than 5/2/2008, regarding this matter. This response may only come via US Postal mail or email. No telephone contact is permitted. Thank you, |
I don't mean to sound stupid - I realize that you said I needed
I don't mean to sound stupid - I realize that you said I needed to change the letter to reflect my circumstances, but in the Florida laws payday loans are leagal according to the stuff you first posted. Are the internet loans legal in Florida? Thank you so much for your help - it is very clear and detailed - I'm just unsure on this one topic.
Internet lenders must be licensed in Florida to lend to FL resid
Internet lenders must be licensed in Florida to lend to FL residents. The only exception would be the companies acting as CSO's and you don't have any one your list.
PayDay Loans
I live in Texas and have several pay day loans. I understand I am only obligated to pay back the principle amount for illegal internet payday companies. I need some help figuring out which companies are legal and which are not.
The companies are (as listed on the ACH debits):
ThinkCash
CashNetUSA
CashSupply
GRC Funding
GECC
ameriloan
Thank you