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Date: Thu, 06/08/2006 - 10:29
State of Texas law suit
Quote:
The state of Texas has prevailed in cases against two "payday" lenders in Hidalgo County who made loans without a license from the Office of Consumer Credit Commissioner while charging exorbitantly high interest rates. The two businesses, EZ Cash and Quick Cash, and owners George Moreno and Anna Gaytan, were found by jury verdict liable to pay $250,000 and $17,500, respectively, to restore interest overpayments resulting from rates as high as 780% paid by unsuspecting customers of these businesses. Combined civil penalties were $12,000 and state's attorneys fees total $36,000. The jury also found that the defendants used threats or coercion to collect money from customers, including the threat of filing criminal charges, when no law had been violated by these customers. "These are clearly illegal acts perpetrated by unscrupulous individuals," said Attorney General John Cornyn. "The people of this state have no tolerance for lenders who prey on those least able to protect themselves against these kinds of practices." Businesses that engage in payday loan arrangements typically lend small amounts to customers who face short-term financial difficulties and often live paycheck to paycheck, with little access to mainstream forms of credit. However, the usurious interest rates exacted against these customers caused much more harm than their original financial difficulties. As a result of the jury's findings EZ Cash and Quick Cash violated the following: the Texas Credit Title law, which regulates lending practices and protects consumers against usurious interest rates; the Texas Debt Collection Act, which protects consumers against unlawful debt collection methods; and the Deceptive Trade Practices Act, which protects consumers against false, misleading or deceptive acts. Under Texas law, interest rates on short-term loans must be capped at 10%, unless made by a licensed lender. Neither of these businesses are licensed lenders. These lawsuits were filed at the request of Consumer Credit Commissioner Leslie J. Pettijohn. |
Source: Texas State Attorney General Press Release
http://www.oag.state.tx.us/newspubs/newsarchive/2000/20001031payday.htm
I have seen that link placed at the top. I will go through the o
I have seen that link placed at the top. I will go through the other one. It looks very informative. Thanks for sharing, linnie
Sol Answers
Quote:
The SOL is very important when you have past due debts or charged off debts that you cannot or do not want to pay back. When a debt is created, there is an original SOL The date of the contract signing. If you default on a new debt - meaning you never even made one payment then the SOL would be the date the contract was signed by you. If you default on a debt that has had payment(s) then the SOL would be from the date of last payment. Why does this matter to you? Because many- in fact millions of dollars in debt nationwide have an expired SOL but consumers rarely know this. If you pay back the debt after the SOL has expired then you have just renewed it therefore making it collectable for another number of years. Additionally there is also an SOL for how long the debt can be reported on your credit. That statute is covered in the Fair Credit Reporting Act. The key to better credit is to acknowledge that a charged off or seriously past due debt will NEVER go current again. It will either be reported as a "paid charge off" or "paid collection account" and neither are good for you. Using an expired SOL as leverage to negotiate a better credit rating can really improve your credit reports. By offering the creditor or agency a restrictive offer or telling them to cease and desist because a debt is legally expired- you can definitely have the upper hand. Let's face it, if you have to pay a derogatory debt shouldn't you try to get the best deal possible? Of course. Don't count on the collection agency or creditor telling you this either! |
texasstar, please refrain from posts like this or you will be de
texasstar, please refrain from posts like this or you will be dealt with
This is one of the main reasons I have been able to get some of
This is one of the main reasons I have been able to get some of my PDL's marked PAID. I am in Texas and the law protects me here.
Question:
If I am already paying some companies through T&C can I still fight what I owe? I didn't think I could get my loans with some of the places marked PAID because I hadn't paid very much on them yet, as opposed to others that I had paid hundreds over the original amount borrowed. So, could I possibly get these marked paid according to that lawsuit?
Yes, seeing the light... the accounts that have been paid off mu
Yes, seeing the light... the accounts that have been paid off must be marked accordingly. You should receive a letter in writing with this status. Check your report if the lenders have updated your file with the latest status. Otherwise, it can hurt your credit in the future.
No, I know I have to tell T&C if they marked me paid, I've alrea
No, I know I have to tell T&C if they marked me paid, I've already done that.
My question is, even if I have not paid the PDL much, can I still fight them on the sole basis of unlawful high interest and not having a license in TX? My situation is that I still have 7 PDL's that I only took out recently (between Feb/March) and so I didn't pay them but one or two re-finance fees. Can I still fight them and get them marked paid even if I have not paid them back even what I borrowed? I just feel that that is wrong...I know they are SO WRONG for taking advantage of desperate consumers, I'm still a bit of a softie I guess...
PDL's with T&C
Seeing_the_Light, I had pulled my accounts (PDL's) out of T&C. Reason, I was still paying on them when in reality, they have been paid 3 times over. I refused to send them any more money. Per my state laws, their loan they extended to me in my state was illegal. I told T&C I was asking for refunds from all of them. T&C said well good for you! We are hearing that alot! So, make sure you know the laws that protect you. Try to add up all the money your PDL's have gotten so far. And, if you are close to paying what you originally borrowed, send them a letter along with your money order to pay it off. They are unable to pursue legal action toward you unless they want to walk into a mess themselves. If you don't owe your PDL's much more, you can ask to have your account marked PIF. It doesn't hurt to ask