Cash Net USA

Yes, it is true that they are offering a line of credit. You'll have to make the required payments. You can get more information from this page:

http://www.debtconsolidationcare.com/Payday-loan-consolidation-and-help/I-have-been-using-a-line-of-credit-with-cashnetus.html

Okay after posting and posting I ran across this. I have a loan with paydayone. I have found they are a cso which from what I am told do not have to abide by our state laws. I live in Louisiana and they are registered here.

What this guy is stating sound like what they are doing? They started me out at $200 and then increased and increased and increased until I was up to $650 with me only paying interest and nothing towards the principal.

Is this what they are doing--a line of credit or installment loan? I am trying to find out how to deal with this cso. Do they have to follow any regulations? What happens if I revoke ACH? Can they sue me? Anything would help.

Sewsew,

I responded to your other post about PDO.

CashNetUSA also operates as a CSO. If you look at the contract you signed, you'll see that the actual "interest" that's being charged does not fall out of line with your state's laws. However, there will be an additional "fee" for the CSO (credit services organization). This is the "cso loophole.

Both CNU and PDO are usually very good about allowing extended payment plans. Generally, they will break your current balance due into 4 or 5 equal payments that would be due over your next 4 or 5 pay dates. No further interest or fees will be added once the agreement is made, so, if you currently owe $1000, they would break that into 4 payments of $250 each, for instance.

If the EPP is still too much for your to afford, you may revoke ACH authorization and tell them you're doing it to force the account to collections. The internal collections department sometimes has more freedom and flexibility in the pay off agreements they can reach. You can work out something you can afford and pay off your loan that way.

They can send you to outside collections and even sue you. This would depend on how much you owe, whether it would be worth it to them, etc. Generally, if you stay in contact with them, work out a pay off and stick to the agreement, you'll be fine.

Hi! Payday loans and lines of credit are very different alternative credit options.

The key differences include:
- Length of time you have to repay borrowed money
- Rates and terms
- How much money you are allowed to borrow and when you can borrow it

A line of credit allows you to borrow funds as much and as often as needed up to your available credit limit with several repayment options including making minimum payments gradually over time or repaying your balance in full to reduce the amount of interest paid. A payday loan, however, you borrow once and pay back in it's entirety by your next payday before you can take out another loan.

I hope I was able to clarify this for you. If you have additional questions about the differences between the two, please feel free to call us at 888-801-9075. We're available 24 hours a day, 7 days a week for you.