Texas law...

wendy, does Texas require a license to lend or arrange pdl loans?

And it never hurts to get all of the information together regarding how much you've paid, and approach the lenders asking to consider the loan paid in full. Do you have a list of how much you have paid?

Did some more research...it appears that Texas law DOES require all lenders "doing business" in the state to be licensed. The consequences of doing business w/out a license is pretty steep too :)! I am a licensed attorney who got into my payday loan hole after graduation when I was unable to secure a full-time job right away.

I am making great money now, but after the fees are paid and my bills are paid...I'm barely having anything leftover. I just want it done with once and for all. Contracted w/T&C, but may actually get some of them to cancel my debt b/c of the non-licensure AND the fact that they have charged WAY over the Texas interest cap!!

wendy, don't feel bad there are many of us here that have gotten into the same situation. No one is immune if they get to the point that there is no alternative.

Many members here have been able to get loans forgiven, though the lender says they are on the "do not loan" list. Oh hurt me lol. It bears repeating though to make sure you get a written statement from the lender to verify an email or spoken agreement, because underhanded pdl have come back and tried to collect from people after saying the loan was paid in full. And also, in case they sell the loan to a collection agency later.

Good luck!

Thanks...my PDL issues are my secret shame...no one knows about them other than on here. Not my family, not my friends. It's just so embarassing to let people know how out-of-control your finances have gotten. Just knowing I'm not the only one in this boat has made me feel so much better!

Here's what I found out about Texas law from a quick internet search. The Texas Office of Consumer Credit Commissioned cracked down last year and instituted the following regulations:

Quote:

Texas provides more information on remedies. VA law just states that civil action can be taken by the consumer if a lender violates VA law. May be able to recover actual and punitive damages.

I was looking it up for someone else last night, and IN law states that the violating company can be made to pay the consumer $1000 per violation. I like that straightforward statement, like the TX law.

Now...how do I figure out whether these predatory lenders are licensed in Texas?

wendy, I don't know about Texas but in many states a consumer can verify the license status of the companies online.

I looked it up, and the Texas Finance Commission, Dept of Banking, oversees licensing for pdl. They call it "money services business licensees".

Big surprise...none of them are licensed in Texas. So...according to my thinking, these are invalid contracts b/c the PDL companies I have loans with are not licensed to lend in Texas. Think I'll send out a letter or two and see what the response is. Plus...even they WERE licensed in Texas, they totally are in violation of the interest rate cap.

Anyone think I have a shot at getting some of my loans marked PAID IN FULL? I hope they put me on a DO NOT LOAN list b/c I NEVER want to see a PDL again in my life!! I know that some people here have had luck w/GW Financial and Cashnet 500, two of my lenders!!

I've had luck with One Click Cash and United Cash Loans. I'm working on Quikpayday. It never hurts to approach them. If nothing else, reduce what you have to pay back.

From the Texas AG's office bulletins:

(1) A usurious contract is NOT ENFORCEABLE under TX law!! So, if a PDL lender does not follow TX law, it would appear that the contract is immediately void.

(2) There is a 10% cap on short-term loan interest...unless the lender is licensed.

The more I search, the better the news seems to get :)!

Bumping this up- This is great info- now can anyone put it into a format with codes cited to use for a letter?

Crystal

Wow, this info can really help some people..maybe they should sticky this.

http://www.occc.state.tx.us/pages/FCbooks/jun04/1516.html

Tammy thanks for jumping in, I just pm'd that link to Crystal also, but (of course) you found it before me. :)

Ok- maybe I am being dense- but it just looks like legal greek to me. How exactly do I use this info?

Crystal- who really appreciates all the help!

Crystal,

Are you also a Texas resident?

Here's a sample letter from Polly's blog that you can use as a basis for your own letter.

http://pollyandsay.yesdebtfree.org/template-letter-for-settlement-with-internet-payday-lenders/

Include your state law citations for licensing and fee limits, and if possible include how much you have borrowed, how much was repaid, and how much would be allowed by your state law.

Good luck! Please pm anyone of us here in the thread and we will be more than happy to help you.

Dana

When you say that Texas has a 48% interest cap on loans + $10, are you telling us that the renewal fees that add up to 48% of said loan is all we're obligated to pay? I think I read that PDL lenders in Texas and the person borrowing the money can agree to rollover the loan numerous times. If this is true, does this make the %48 cap null and void? I have 4 loans from store fronts in Texas and at least 2 of 'em have gotten their money back atleast 2X over what I originally borrowed. I defaulted on all 4. One I'm paying back and receiving no hassle. I've paid them the equivilent to what I borrowed. Another I'm still paying on, but it's the second of an original loan that I paid off serveral times over in fees. They are the sister company of another one that just went to collection and the one in collection has been paid off several times over since I opened it in September.
What I'm confused with is interpreting the law. I paid the 2 "sister" companies religiously, but they were the first to threaten me with hot check prosecution. I "ve paid them more than the original balance that Iborrowed in fees as I stated earlier, but I want to see if I can rightfully send them a letter stating that I've paid them far and above what the state allows, but do I have a leg to stand on? The other 2 companies were paid also, but because I'm behind, they're all threatening collection and I just think it's crap to have paid all these people above and beyond the original amount of what they gave me only to have them have the power to further damage my already damaged finacial situation. I've repaid them they're money. Just because, after several months I reached the point to where I couldn't pay 'em, they have the right to even remotely prosecute? If I borrowed 300 in September and defaulted in January after making $90 payments bi-weekly, please tell me that the %48 works in my favor. That's about 9 bi-weekly payments @90, which means about $810 in fees alone without retiring the balance. Do I have a leg to stand on or am I SOL?

"Guest" posted in line #3 of his message that loans must be converted to declining interest loans after the 2nd payment. Does this apply the licensed store fronts in Texas?