Help in Texas

If you have given Cashnet USA any check and it has bounced, then you are bound to be sued. What do you mean by 'technically' never given a check?

I never gave them a check it was set up as electronic drafts every two weeks or so. Has anyone heard of this south point management group?

Sounds to me like Cashnetusa tried to go an automatic withdrawal and the funds were not avail. Cashnet is a legal lender so you are bound by the agreement you signed. I had a loan with them and when AZ made PDL's illegal cashnet worked with me to pay off the amount owed, they even lessoned the amount of interest. If this has gone to collection sounds like you've not paid what is owed? If this was me I'd call Cashnet to see if its possible to work out a payment plan or if it's too late.

I'm not arguing the fact that I owe the money, I know I do and when I get back on my feet I will figure out a way of paying it, my main concern is the (usually empty) threat that I will be charged with a hot check.

ACH withdrawals are not the same as writing a paper check. I will return shortly with more info shortly on how you should proceed, however, I have a couple of questions first.
- Have you ever received a written letter of collection from this collection agency through the mail?
- How long has it been since you obtained the loan?

Are you sure the name of the collection agency is south point group? I need the exact name.

I can't find any information on south point group, that is a big red flag. They can NOT prosecute you for a bad check if there was no check involved.

If you have never received a letter of collection via the mail the likelihood of this collector being a legal debt collector is slim. Never admit to owing a debt to a voice on the phone, demand that they send written documentation via the mail, it's your right and also a requirement they must adhere to per the FDCPA.

I never received anything in writing, and to be precise when I spoke to the man on the phone who was threatening legal action, I asked why, if he was a pre litigation firm he was trying to collect on the debt. He told me that it is the last chance before I am pursued legally. I asked for a debt validation letter and he stated that he did not have to furnish me one as they are not a collection agency. Well that prompted me to google the phone number which brought up south point management group. I looked at the BBB which has them classified as a collection company, with, of course, an F rating. I'm not so much concerned about getting sued, it's the threat of the hot check, which I didn't think they could do. Also, he left me a voicemail stating that they received a fax and that I was going to be prosecuted, etc, etc. which to me is in blatent disregard of the Fair debt collection procedures. Just frustrating, because even though I'm pretty sure that it's not a legit threat, it still has me nervous.

Also, it's been about a year since I received the loan.

They can't prosecute you for a bad check unless they have the actual paper check with your signature on it, they are blowing a lot of hot air. Next time they call tell them you are going to file a complaint against them for non compliance of the FDCPA. And please do so! You may as well file a complaint with the BBB too, a lot of people say the BBB isn't much help but I disagree, they helped you just because they had a record of other complaints against them.

I have seen a few HOF members here who say that BBB is of no use. That's not true at all. File cases with them. They have helped many in their fights against illegal companies. And remember, to notify your states' Attorney General as well about these debt collectors.