Are these payday loans legal in Texas

Check N Go and Check City are legal in Texas. You need to contact them and request a EPP arrangement. They may suggest you default and let it go to collections. You will owe the principal and fees/interest, but it will stop accruing any additional fees and interest once you enter an EPP arrangement or officially default and go into collections.

Ameriloan is tribal and illegal. Follow the steps in the sticky "dealing with unlicensed lenders".

It is a good idea you secure your bank account before contacting any of your lenders.

Thank you for your help! I have already closed out the bank account associated with these lenders and will contact them. I will also take care of Ameriloan.

No problem - glad to help. Please keep us updated on your progress with the lenders. Congratulations on getting off the teadmill!

I do have one more question. I am not worried about Check N Go because it is such a small amount. What I am worried about is Check City. I just contacted them and they are not really willing to negotiate on the payment option of 6 payments of $160 a month. How long does it usually take when a loan defaults for that loan company to take you to court? I need to know what time frame I'm working with so I can save this money to put towards this loan to PREVENT it from going to court.

I did have a loan with United Cash Loans that was settled on 06/19/2013. I calculated everything, and it has resulted in an overpayment of $225. After reading the fine print, I realized that this is the same company as Ameriloan (MNE Services, Inc or something like that). Should I even attempt to recover this $225 since the debt was settled?

You can try - annoy the hell out of them for a refund.

Thanks, I will! I've already started the process. :)

And an update on Ameriloan: I sent them an e-mail yesterday using the template from "Dealing with Unlicensed Payday Lenders (step by step)" and when I logged onto my account with Ameriloan today, it states that my next principle payment due is $0 and my next interest payment due is $0. Not to mention it now shows the due date of 07/03/2013! It worked (or at least I'm assuming, from this information)! There's no way they can get to my bank account because I closed the one associated with these loans. It's a good day!

Thank you so much for all your help!

No problem - you did things correctly. Ameriloan probably wrote off your balance and figured you weren't worth trying to collect on since it's such a tiny loan.

This is now the message that I received from Ameriloan:

Subject: Ameriloan Date: 07/8/13

Dear Marah Robinson:

The loan agreement you entered into with Ameriloan was and is a valid agreement, which is governed by the laws of the Miami Tribe of Oklahoma, a federally recognized Indian Tribe. As a federally recognized Indian Tribe, the Miami Tribe of Oklahoma is a sovereign, just like the state of Texas. As such, the loan agreement is a valid agreement under the laws of Miami Tribe of Oklahoma and is governed by the laws of the Miami Tribe of Oklahoma.

Please see the attached settlement offer:

Balance Due: $195.00

Application ID: 1998933104

This offer is being sent to you as an offer to settle the above referenced account. Ameriloan is currently offering $105.00 as a settlement in full on the above noted account.

If you want to take advantage of this limited opportunity, please call one of our representatives today at our toll free number 1-800-394-0089 Ext 237 Monday–Friday 7:00AM-3:00PM CST, or email us at compliancedepartment@ameriloan.com. Payment must be received by Ameriloan no later than the close of business on July 19th 2013. Payment must be made via ACH and or the use of a debit/prepaid card by the above date, or the offer will be considered null and void. This is a limited opportunity and contingent upon the clearance of your good funds. If you would like Ameriloan to automatic debit the amount, please give permission via email or call us at the number provided.

Upon clearance of the above noted funds, an email will be issued as verification that the above stated amount was received, has been cleared and is accepted as settlement of the above account. There will remain no further outstanding obligations pertaining to the account.

We take pride in assisting our customers to resolve their situations. Please call one of our representatives today to take advantage of this limited opportunity, please call our toll free number at 1-800-394-0089 Ext 237 Monday–Friday 7:00AM-3:00PM CST, or email us at compliancedepartment@ameriloan.com.

This is your 2nd account with Ameriloan. You applied for this account on our website at ameriloan.com.


To which I replied:

Dear Ameriloan,



As you can see from the law described below: Online lenders must be licensed in TEXAS. It is irrelevant that you are governed by the laws of the Miami Tribe of Oklahoma. You are located in Oklahoma and are a tribal lender, therefore it is illegal for you to lend to residents of Texas. The loan agreement may be valid under the laws of Miami Tribe of Oklahoma, but it is not valid under the laws of Texas, where I reside. My address was listed on the loan application when I applied, so MNE Services, Inc is well aware of where I live and knew it was illegal to lend to me in the first place. I am not settling for the amount of $105. As stated in the previous e-mail, I only owe you the principal. It is not legal for you to charge interest to those residents in the state of Texas. If you do not agree to the aforementioned amount of $60, then I will not be paying you anything. That is final.

I also included the law under Texas concerning payday lenders. This is ridiculous that they're trying to argue when they have no leg to stand on.

They still have hope that people will cave and send them money... :) Your response above is perfect.

And they are STILL arguing with me!

Latest response:

"Per the fact that we are tribally owned, we are not required to have a license. As stated below we may settle this account for $105.00 on 07/19/2013 as a courtesy. Each loan is treated individually. Any monies paid on the first loan are unable to be applied to the current loan.

Thank you,
Ameriloan Compliance Department

In a separate e-mail:

"Thank you for your correspondence regarding your account. We are disappointed that you are no longer satisfied with your loan. However, the loan agreement you entered into with Ameriloan was and is a valid agreement, which is governed by the laws of the Miami Tribe of Oklahoma, a federally recognized Indian tribe.

In addition, it has come to our attention that the form you are using for your correspondence originated from a forum on the website http://www.debtconsolidationcare.com/ . Regrettably, posters on these types of forums tend to traffic in misinformation and mistruths. Often, forums of this nature advance the incorrect theory that form complaints and letters will absolve customers of the obligations set forth in the valid loan agreement entered into between the customer and Ameriloan.

Notwithstanding, Ameriloan takes pride in its customer relations and has reviewed your account to ensure that all debits and payments were in accordance with your loan agreement. Upon review, your transaction history shows that all debits and payments on your account were correct. As such, Ameriloan will not be issuing a refund on your account."

And this is what I replied. I calmly told them to stick it to them:

"Dear Ameriloan,

Your argument is futile. Per the fact that you choose to provide a service to those residents in Texas, you have to adhere to TEXAS Laws, not just yours set out by the Miami Tribe of Oklahoma. It is true that I did seek guidance through www.debtconsolidationcare.com, but they just pointed me in the right direction. It states in Texas law that an online lender MUST be licensed in the state of Texas for that agreement to be valid. And I didn't get that information from www.debtconsolidationcare.com. I researched that myself. Please view my research:

"The Better Business Bureau Serving Greater Houston and South Texas is warning cash-strapped families to beware of some online payday lenders that claim they are not beholden to state or federal laws regarding licensing requirements, debt collection practices or caps on interest rates. "

"Many complainants were surprised to learn that the online lender was not licensed by the state and charged interest rates well over what was allowed by their state usury laws. When confronted, the lender typically responds that they don’t have to follow state or federal laws — often claiming that they are based in another country or on Native American reservations and are sovereign nations."

http://houston.bbb.org/article/bbb-warns-against-online-payday-lenders-that-claim-the-laws-dont-apply-to-them-34476

"The state of Texas allows payday loans as long as the lenders--either Internet or storefront payday loan lenders--have a license to lend within the state. Lenders must adhere to the lending restrictions and loan rate caps set by the Texas Finance Commission. Internet payday loan lenders cannot lend to borrowers residing in states that prohibit payday lending, or they risk losing their license and, depending on the lending laws of the borrower’s state, may not collect on the loan should the borrower default."

Texas Payday Loan Regulations

•There is no specified loan maximum for the state of Texas, although payday loans generally do not exceed $3,000. As of June 16, 2000, Texas lending law sets payday loan terms at no less than seven days and no longer than 31 days. The maximum finance charge allowed is $12 per $100 borrowed for a 14-day loan. Lenders can charge no more than $10 in fees per loan plus 48 percent annual interest. The maximum allowed annual percentage rate for payday loans in Texas is 309 percent, which is significantly higher than that of traditional loans. Law prohibits payday lenders from renewing loans or extending more than one loan to the same borrower at the same time.

http://www.ehow.com/list_6689975_internet-payday-loan-laws-texas.html#ixzz2YgArViAg

So, according to my research, you were in violation of the laws of Texas when MNE Services, Inc. (operating as Ameriloan and UnitedCashLoans) gave me a loan at the same time for $150.

I do not agree to the settlement of $105 due on 07/19/2013. Since you have not agreed to the terms I have set out to you, I am paying you nothing. You will have to take me to court. And seeing that your violation of several of Texas laws, I don't see you bringing me to court."

Take that Ameriloan!

Also sent them this:


Class Fights 'Rent-a-Tribe' Payday Loans


By JOE HARRIS










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KANSAS CITY, Kan. (CN) - A federal RICO class action claims the owner of a payday loan company, a felon, used a "rent-a-tribe" scheme to avoid civil and criminal liability for his illegal loan practices.
Lead plaintiff Larry Robinson claims defendant Scott A. Tucker, of Leawood, Kan., is not licensed to issue payday loans in Kansas and cannot get a license for it because he is a felon.
"Defendant Scott Tucker has been convicted of felony mail fraud and felony making a false statement to a bank. See United States v. Tucker, Case No. CR-90-00163-01 (W.D. Mo. Aug. 13, 1990) and United States v. Tucker, Case No. 4:91-CR-00001 (W.D. Mo. Jan. 4, 1991)," the complaint states in a footnote.
But Tucker "organized, owns, operates, manages, and controls various payday loan trade names, including 'United Cash Loans,' which are in the business of providing illegal payday loans to consumers over the Internet," from an office in Overland Park, Kansas, Robinson says in the complaint.
He claims Tucker circumvented the system through a rental agreement with the Miami Tribe of Oklahoma in 2003, and with the Santee Sioux in 2005.
The complaint states: "Defendant Scott Tucker and the Miami Tribe of Oklahoma entered into an agreement wherein defendant Scott Tucker and CLK Management, LLC agreed to provide the tribe with $5 million in capital, as well as all operational and managerial control, including staff, equipment, and advertising services, and the Miami Tribe of Oklahoma agreed, at its option, to furnish an office on tribal lands staffed by at least one employee in order to permit defendant Scott Tucker to use the tribe's name to create a façade of immunity from state and federal lending laws.
"Defendant Scott Tucker and CLK Management, LLC exclusively operated, managed, and controlled the payday lending operations, while paying the Miami Tribe of Oklahoma a monthly fee of 1 percent of gross revenue or $20,000 per month, whichever was greater, to use their name and purported immunity."
Robinson claims that in 2004 the Colorado attorney general sent a cease-and-desist letter to CLK Management's "mail drop" in Carson City, Nev., "stating CLK Management LLC's business practices violated Colorado law."
Undeterred, Robinson says, "In early 2005, defendant Scott Tucker approached the Santee Sioux Nation to discuss a proposal to create a structure to 'rent' the tribe's legal immunity for his illicit payday loan businesses.
"Defendant Scott Tucker and the Santee Sioux Nation entered into an agreement wherein defendant Scott Tucker and CLK Management, LLC agreed to provide the tribe with $3 million in capital, as well as all operational and managerial control, including staff, equipment, and advertising services, and the Santee Sioux Nation agreed, at its option, to furnish an office on tribal lands staffed by at least one employee in order to permit defendant Scott Tucker to use the tribe's name to create a façade of immunity from state and federal lending laws.
"Defendant Scott Tucker and CLK Management, LLC exclusively operated, managed, and controlled the payday lending operations, while paying the Santee Sioux
Nation a monthly fee of 1 percent of gross revenue or $20,000 per month, whichever was greater to use their name and purported immunity."
Robinson claims that in June 2005 a Colorado court "issued contempt citations stemming from the failure of 'Cash Advance' and 'Preferred Cash Loans' to respond to investigative subpoenas."
In response, Robinson says, MNE Inc. and SFS Inc. appeared before the court and said they do business as Cash Advance and Preferred Cash Loans, respectively.
"MNE Inc. and SFS Inc. claimed to be wholly owned subdivisions of the
Miami Tribe of Oklahoma and the Santee Sioux Nation, respectively, which they claimed are federally recognized Indian Tribes immune from the State of Colorado's subpoena authority," the complaint states.
"The State of Colorado, MNE Inc., and SFS Inc. continue to litigate whether MNE Inc. and SFS Inc. are immune from the authority of the Colorado Courts."
Robinson claims that in 2006 and 2007, CLK transferred several trademarks, including United Cash Loans, Ameriloan, USFastCash, and Changing the Way American Gets a Loan! to TFS Corp. He claims that TFS aka Tribal Financial Services Corp. "operates out of a post office box in Miami, Oklahoma."
He claims that Tucker operates "various payday loan trade names, including 'United Cash Loans,' and CLK Management LLC from an office building at 10895 Lowell Avenue, Suite 100, Overland Park, Kansas 66210," which is not on tribal land.
He adds: "Defendant Scott Tucker has obtained post office boxes on various tribal territories or reservations throughout the United States of America for use by his various payday loan trade names.
"Defendant Scott Tucker and CLK Management, LLC have not and do not conduct business at or near these various post office boxes, and all mail addressed to such post office boxes is and was forwarded to defendant Scott Tucker's Overland Park office where it is processed.
"Defendant Scott Tucker has instructed his employees keep the location of the Overland Park office secret and not to provide its address to the general public.
"Defendant Scott Tucker has informed his employees that he has associated with various Indian tribes in order to gain immunity from state and federal lending laws.
"The Miami Tribe of Oklahoma and the Santee Sioux Nation did not and do not have a physical presence at the Overland Park office and did not and do not direct or control the operations of Defendant Scott Tucker or CLK Management, LLC.
"Defendant Scott Tucker, not the Miami Tribe of Oklahoma or the Santee
Sioux Nation, genuinely owned or owns, controlled or controls, and operated or operates the various payday loan trade names, including 'United Cash Loans,' from an office building at 10895 Lowell Avenue, Suite 100, Overland Park, Kansas 66210."
Robinson says he got a $300 loan from Tucker, with an annual interest rate of 608.33 percent, well above the maximum interest rate allowed by Kansas law.
The class consists of anyone who got a payday loan from Tucker and the various trade names he owned, operated, or contracted with.
Robinson seeks treble damages and punitive damages for usury, violations of the Missouri Merchandising Practices Act and/or the Kansas Consumer Protection Act and RICO violations.
He is represented by Noah Wood of Kansas City, Mo.

Thanks for sharing......hope this shuts them down!!!