Internet Lenders in Ohio

Magnum Cash is NOT legal in Ohio! If you revoke their ACH it will only work temporarily, because they have many many different names, so, they will change their name and debit your account again and again and again. Not only that, but they will share your account information with other illegal lenders, illegal collection agencies and only God knows who else. In other words, your account will NEVER be safe again, NEVER. So, closing your account is the only way to totally protect yourself, otherwise, you will just have to live with the consequences of having money stolen from you for a long time to come. Sorry I don't have better news for you, but that is the cold hard facts.

As far as your other lenders, they're legal, make sure the interest they are charging is not over 28% annually, because that is the cap in Ohio for small loans. Unless they are registered as a CSO (Credit Service Organization), and unfortunately CSO's fees are not regulated.

Cashnetusa, Paydayone and Advance America are all members of the CFSA (Community Financial Services Association of America) which means they offer an extended payment plan, but you will need to request it because they won't volunteer it.

For Magnum, they are not entitled to interest and fees because they are not licensed to lend in the state of Ohio, so, CLICK HERE to find out how to deal with illegal lenders.

Thank you for your reply. CashNet, PayDay1, and NMS are all charging way more than 28%--like 400 in fees for $1000/month....

Is there a letter I can send them basically saying I have paid in full and to back off???

Thanks

Stephanie

Quote:

Yes, you are correct CashNet and PayDay1 are also CSO so the interest angle won't work...but aren't they illegal giving loans in Ohio per the below ORC rules:

(A) No person shall engage in the business of making short-term loans to a borrower in Ohio, or, in whole or in part, make, offer, or broker a loan, or assist a borrower in Ohio to obtain such a loan, without first having obtained a license from the superintendent of financial institutions under sections 1321.35 to 1321.48 of the Revised Code. No licensee shall make, offer, or broker a loan, or assist a borrower to obtain such a loan, when the borrower is not physically present in the licensee???s business location.
(B) No person not located in Ohio shall make a short-term loan to a borrower in Ohio from an office not located in Ohio. Nothing in this section prohibits a business not located or licensed in Ohio from lending funds to Ohio borrowers who physically visit the out-of-state office of the business and obtain the disbursement of loan funds at that location. No person shall make, offer, or broker a loan, or assist a borrower to obtain a loan, via the telephone, mail, or internet.


So, technically it is illegal for them to even offer me a loan in Ohio, assuming they are not licensed here and have a physical office here? The way I read it it states basically they cannot give a loan in Ohio without having a "brick and mortar" building.


If all else fails they still have to work out a payment plan, correct?


Thanks


Stephanie

Unfortunately CSO's aren't required to obtain a license, they are only required to register with the secretary of state and their interest and fees aren't regulated, sorry.

Credit service organizations don't need to be licensed in Ohio. Be it the finance charge or the maximum loan, there's no limit. I think there's a rate cap worth 28% APR as per the State law.

I am going to try to fight Cashnet USA on the laws quoted above......I have already paid back the principle.