Clarification about PDLs in Texas... Help!

So I think I've figured out the answer to the first question... those last two companies are unlicensed in Texas, therefore illegal.

But I'm still trying to find out if a company operating as a CSO without being registered properly (bond cancelled, expired before I ever did business w/ them) is still considered to be legal? I mean, I'll pay them the principal, but I want to figure out how much leverage I have to play hardball about the additional fees and to negotiate a reasonable payment schedule.


Anyone?

Quote:

I spoke with Texas Office of Consumer Credit Commissioner, and read them exactly what I found on the list of CSO registries (registry expired, bond cancelled), and was told that without a current registry and bond, they are not operating under the CSO model, and therefore NOT a legal lender in the state of Texas, period!

So, if CashnetUSA had kept their bond and registry current, they would in fact be legal in Texas. As it stands, they are NOT legal lenders and have not been since March of 2007. Yay!

Which means, even with the $683 in principle left on the current loan, I have still overpaid almost $2000 in fees on illegal loans. Oh, this is gonna be fun.

Oh, and I've noticed that on their website, CashnetUSA does NOT list Texas on the list of states in which they offer loans. Interesting...

Tell me if this sounds good, or if I need to change anything:
-------------------------------------------------
CashNetUSA

Re: Acct Numer:XXXXXX

Re: ACH Revocation
Wage garnishment/Wage assignment Revocation
Cease and Desist Notice
Paid in Full Letter, Refund


Dear Sir or Madam,

Since taking a loan with you, I have educated myself on the laws and regulations of PDLs and CSOs in the state of Texas, and have found the following to be true:

According to the Texas Office of Consumer Credit Commissioner, a lender must be registered with the Secretary of State and bonded to operate as a legal lender under the CSO model. According to the Credit Services Organization search on the Texas Secretary of the State website, Cashnet USA is NOT currently registered and bonded in the state of Texas (bond cancelled, registry expired 3/14/2007), and therefore should NOT be issue loans to Texas residents at all. I have verified this with the Texas OCCC and will be filing a complaint with them, as well as with the BBB and the Texas State Attorney General???s office.


I hereby revoke any and all ACH authorizations with your company from debiting any of my personal accounts, per Federal law, Regulation E Section 205.10 Preauthorized transfers. I have closed my account with the BBVA Compass to protect my interest in this matter, per instructions from Attorney General???s Office. I also revoke any and all wage assignments I may or may not have signed with your company, 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 have notified my employer about this matter so any attempts to do so on your part will be rejected.

I demand that any contact be made through US Postal mail or email only, as from here on I will be keeping complete and accurate records of all communication, as advised by the Attorney General???s Office. Any contact and all responses from your company, parent company, affiliated companies, or collection agents retained by you will be recorded and forwarded to the above mentioned agencies and authorities.

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.

As an illegal lender in the state of Texas, the only amount you are entitled to collect is the principle amount of the loan. The loan was for $950, and $267 has already been paid, leaving a principle balance of $683. However, over the last 2 years I have overpaid on previous loans to the tune of $2577, which entitles me to a refund of $1894. I hereby demand a letter indicating that this loan is paid in full, as well as a refund in the amount of $1894 in the form of a cashiers check to via certified mail post-marked within 5 days of the date on this letter.

If you contend you are operating legally in the State of Texas, please provide a copy of all paperwork tied to this transaction-along with verification your current CSO registry and bond, which I will then forward to the Texas Office of Consumer Credit Commissioner for review. You will need to send that to me via certified mail post-marked within 5 days of the date on this letter.

Once I am in receipt of the paid in full letter and refund I will notify all the above mentioned agencies that you have satisfactorily resolved this matter with me.


Sincerely,


Melissa McClung


---------------------------------------------


Hows that?

[QUOTE=Melissa McClung;677424]I spoke with Texas Office of Consumer Credit Commissioner, and read them exactly what I found on the list of CSO registries (registry expired, bond cancelled), and was told that without a current registry and bond, they are not operating under the CSO model, and therefore NOT a legal lender in the state of Texas, period!
So, if CashnetUSA had kept their bond and registry current, they would in fact be legal in Texas. As it stands, they are NOT legal lenders and have not been since March of 2007. Yay!
Which means, even with the $683 in principle left on the current loan, I have still overpaid almost $2000 in fees on illegal loans. Oh, this is gonna be fun.[/QUOTE]
Hallelujah!

By the way, I do hope you will stick around and help other people who are from your state, we could really use someone who is knowledgeable in TX lender laws!

Not THAT knowledgeable, it seems... thru one more round of crossing i's and dotting t's, I discovered one last DBA for CashnetUSA, and it (Cash America Net of Texas, LLC) is currently has a valid registry and surety bond. *grmble*

And I was so proud of that letter, too. Ah well, better to eat a little crow here than with a loan company.