Online loans
Date: Fri, 04/08/2011 - 21:33
I'm just confused about it; I don't really know how to put it in words... I have an online loan (Payday One) and it seems to be legal. They just change the loan type. It may be advertised as Payday Loan but in my case, it is actually a CSO.
When are these online loans illegal? I would assume they would all operate as CSO's and bypass PDL laws.
How do you know the difference when getting these loans?
If they operate as CSO's, then they will be able to bypass the P
If they operate as CSO's, then they will be able to bypass the PDL laws. CSO or Credit Services Organization as an entity provides one of the below mentioned services:
Obtaining an extension of consumer credit for the borrower
Improving a consumer's credit history as well as rating
Providing assistance to a consumer regarding the above mentioned services
The CSO acts as a broker. The Texas Credit Services Organization Act assists the payday lender to register as a CSO and lets it to act as a loan broker. Thus, the CSO which was previously a payday loan company can make loans via consumer lending companies that are unregistered or unlicensed.
Nice explanation, but not all together correct. The CSO service
Nice explanation, but not all together correct. The CSO services the loans "made" by a federally chartered bank. This is also called the "bank model". Some states have worded thier regulations to eliminate this option also. That would be the case in GA, NC and I am pretty sure in OH contrary to some posts on here.