Just got a response to Question to one of my PDL interesting
Date: Wed, 06/21/2006 - 14:16
Ms. XXXX :oops: ,
I am writing in reference to your correspondence received on 6/21/2006.
Please be advised that GECC, Inc., dba Cash Direct Express is as follows:
1. Cash Direct Express is a lender licensed under the laws of Delaware
2. Cash Direct Express is not conducting business in the State of Texas
3. Cash Direct Express does not maintain a location in the State of Texas
As was specifically stated in your loan agreement, the loan was provided in accordance with the Laws that govern licensed lenders in the State of Delaware. The choice of venue was stated in your loan agreement as the State of Delaware. Our physical location is in the State of Delaware. The loan was approved and funded in the State of Delaware.
If you should have any other additional questions please email us at customerservice @cashdirectexpress.com or contact us at 1 (866) 432-2562 Mon-Fri from 8:30am to 5:00pm ET.
Thank you,
Customer Relations
Cash Direct Express
The loan was funded under the laws of the state in which you liv
The loan was funded under the laws of the state in which you live. Obviously they are conducting business in Texas where they gave you a loan.
Yes I live in Tx and I did this over the internet I can sure see
Yes I live in Tx and I did this over the internet I can sure see how these people will tell you anything Yes I did go back and look at that documentation However I thought my laws protected me here
Quote:The choice of venue was stated in your loan agreement as t
Quote:
The choice of venue was stated in your loan agreement as the State of Delaware |
Which state did you mention of your residence? As per the papers, it seems you choice was Delaware. So they are using their own state laws.
The company is located in Delaware. But they funded a loan in T
The company is located in Delaware. But they funded a loan in Texas, so they have to go by the laws of Texas. Their claim of not conducting business in Texas is false, because they have funded a loan to a resident of the state of Texas.
No on the forms let me check I know I put my address as Tx with
No on the forms let me check I know I put my address as Tx with the application
Tammy, that's the point. If txtreasure has put TX instead of DE
Tammy, that's the point. If txtreasure has put TX instead of DE in the papers, she has the stand. But if she wrote DE, the company does not seem to be wrong.
That is funny in the original application that is done online I
That is funny in the original application that is done online I put my address as home as I would anywhere else along with my employer information etc.
and when i pull up the promisary note and loan documents it just has my name and SS and my banking information nothing at all refrerenceing address
And this is the same with the other PDL that I have they are out of ENGLAND Gosh am I stupid
What leg do I have I didnt put DE
Ok I went back on to make sure of what they asked for and imagin
Ok I went back on to make sure of what they asked for and imagine that when I clicked on get cash Guess what they record your IP address so all the information was still in the boxes that I had filled out before and Yes it SAYS that I live in Texas what the heck, And they confirmed with me that they are not licensed to do buisness here Advice
We all know this is bull. They abid by the laws of the state th
We all know this is bull. They abid by the laws of the state they loan in. You might have signed and agreed to their contract but you found out different. There are laws in place to protect you from this type of triple digit loaning. My state's usury law has been in place since early 1900's. Right on my attorney general's website, there is an article about it being the oldest law in place and so far it has kept payday loans out of my state. Well thats not so true but just proof of why the laws are there to protect you
Now, you don't need to worry. You have entered everything correc
Now, you don't need to worry. You have entered everything correctly in the paper and didn't try to mislead them. There is a proof of your actions. But since, you have a loan with them, you need to pay it within the permissible laws of your state. They can't charge more than that.
You need to check Tx law on that point. In Va., they're require
You need to check Tx law on that point. In Va., they're required to be licensed in Va. if they make a loan to someone in Va., regardless of how they do it or where they're located. If Tx. law doesn't give you similar protection, you're probably going to be bound by your contract.
It DOES NOT MATTER where the PDL approves and funds the loan. T
It DOES NOT MATTER where the PDL approves and funds the loan. The transaction took place in YOUR state. The law states this. They will try to mislead you into thinking you have to follow their laws, but this is NOT the case.
They have to follow YOUR state laws. Simple as that.
As stated by VLD, check the laws of Texas regarding payday lende
As stated by VLD, check the laws of Texas regarding payday lenders. In my state, a company must be licensed in order to loan money, period. If they are not, they are conducting an illegal transaction and the state laws of the consumer must be followed. It has been confirmed by my consumer protection office as well as the division of financial institutions in my state. I have also received correspondence from the AG's office in Delaware stating the loan takes place in the state of the consumer. Internet lenders do not believe they need to be licensed in various states but this incorrect in many cases.
Actually, they know perfectly well they are required to be licen
Actually, they know perfectly well they are required to be licensed in the state in which the transaction really occurs. They just say they don't have to and sound important saying it, because they hope most people will believe it and give up and roll over. The technical legal term for this technique is, "dust in the eyes". Are they lying? Sure, and they know it. And they're making so much money off the suckers, they don't really care if a few people wise up and stop paying through the nose.
Quote:When a defendant makes a conscious choice to conduct busin
Quote:
When a defendant makes a conscious choice to conduct business with the residents of a forum state, "it has clear notice that it is subject to suit there." World-Wide Volkswagen, 444 U.S. at 297, 100 S.Ct. at 567. Dot Com was under no obligation to sell its services to Pennsylvania residents. It freely chose to do so, presumably in order to profit from those transactions. If a corporation determines that the risk of being subject to personal jurisdiction in a particular forum is too great, it can choose to sever its connection to the state. Id. If Dot Com had not wanted to be amenable to jurisdiction in Pennsylvania, the solution would have been simple--it could have chosen not to sell its services to Pennsylvania residents. (W.D. PA 1997) |
http://cyber.law.harvard.edu/metaschool/fisher/domain/dncases/zippo.htm
[color=red]Link made active - Mike[/color]
VLD, Your post is so true. The more I read what you said, th
VLD,
Your post is so true. The more I read what you said, the more it made sense to me. PDL companies do prey on those of us "who didn't know better" at the time. Heck, I just needed the money and really didn't think about the consquences at the time. Those times have changed for me personally. It boggles my mind to think of us those who are still suffering in the pdl cycle. I cringe when I think of the money that I wasted with these companies.
I try not to think about the money I wasted in the past 1.5 year
I try not to think about the money I wasted in the past 1.5 years on these loans. It makes me sick.
So How do I find the exact wording for Texas Laws for this lendi
So How do I find the exact wording for Texas Laws for this lending and I tried to understand how the rates were for Tx and what the most they could charge me on a $300 and couldnt figure that out
I just got not off the phone with the Office for Consumer Credit
I just got not off the phone with the Office for Consumer Credit and they told me that the PDL's do not have to go by my state laws concerning lending, That by signing a contract with them I have to go by thier laws and that there is no protection for me with this under Texas Laws
I need to find something on the state laws here , She also told me that if they go through a national bank that is not goverened by Texas laws
I am shocked she said that! These are excerpts from the Texas F
I am shocked she said that! These are excerpts from the Texas Finance Code:
Quote:
?? 342.051. LICENSE REQUIRED. (a) A person must hold a license issued under this chapter to: (1) engage in the business of making, transacting, or negotiating loans subject to this chapter; or (2) contract for, charge, or receive, directly or indirectly, in connection with a loan subject to this chapter, a charge, including interest, compensation, consideration, or another expense, authorized under this chapter that in the aggregate exceeds the charges authorized under other law. (b) A person may not use any device, subterfuge, or pretense to evade the application of this section. (c) A person is not required to obtain a license under Subsection (a) if the person is: (1) a bank, savings bank, or savings and loan association organized under the laws of the United States or under the laws of the institution's state of domicile; or (2) subject to Chapter 651, Insurance Code. (d) An insurance agent licensed under Subchapter B, C, D, or E, Chapter 4051, Insurance Code, is not required to obtain a license to negotiate or arrange a loan on behalf of a bank, savings bank, or savings and loan association provided that the insurance agent or the bank, savings bank, or savings and loan association does not make the provision of insurance a condition to apply for or obtain a loan or service from the bank, savings bank, or savings and loan association. (e) An electronic return originator who is an authorized Internal Revenue Service e-file provider is not required to obtain a license to make, negotiate, or transact a loan that is based on a person's federal income tax refund on behalf of a bank, savings bank, savings and loan association, or credit union. Added by Acts 1999, 76th Leg., ch. 62, ?? 7.19(a), eff. Sept. 1, 1999. Amended by Acts 1999, 76th Leg., ch. 909, ?? 2.06, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 604, ?? 1, eff. Sept. 1, 2001; Acts 2005, 79th Leg., ch. 728, ?? 11.116, eff. Sept. 1, 2005. |
http://www.capitol.state.tx.us/statutes/docs/FI/content/htm/fi.004.00.000342.00.htm#342.051.00
Quote: ?? 342.201. MAXIMUM INTEREST CHARGE. (a) A loan contra
Quote:
?? 342.201. MAXIMUM INTEREST CHARGE. (a) A loan contract under this chapter that is a regular transaction and is not secured by real property may provide for an interest charge on the cash advance that does not exceed the amount of add-on interest equal to the amount computed for the full term of the contract at an add-on interest amount equal to: (1) $18 for each $100 per year on the part of the cash advance that is less than or equal to the amount computed under Subchapter C, Chapter 341, using the reference base amount of $300; and (2) $8 for each $100 per year on the part of the cash advance that is more than the amount computed for Subdivision (1) but less than or equal to an amount computed under Subchapter C, Chapter 341, using the reference base amount of $2,500. (b) For the purpose of Subsection (a): (1) when the loan is made an interest charge may be computed for the full term of the loan contract; (2) if the period before the first installment due date includes a part of a month that is longer than 15 days, that portion of a month may be considered a full month; and (3) if a loan contract provides for precomputed interest, the amount of the loan is the total of: (A) the cash advance; and (B) the amount of precomputed interest. (c) A loan contract under this chapter that is an irregular transaction and is not secured by real property may provide for an interest charge, using any method or formula, that does not exceed the amount that, having due regard for the schedule of installment payments, would produce the same effective return as allowed under this section if the loan were payable in equal successive monthly installments beginning one month from the date of the contract. (d) A loan contract under this chapter that is not secured by real property may provide for a rate or amount of interest computed using the true daily earnings method or the scheduled installment earnings method that does not exceed the alternative interest rate as computed under Subchapter A, Chapter 303. Interest may accrue on the principal balance and amounts added to principal after the date of the loan contract from time to time unpaid at the rate provided for by the contract until the date of payment in full or demand for payment in full. (e) A loan contract under this chapter that is not secured by real property may provide for a rate or amount of interest computed using the true daily earnings method or the scheduled installment earnings method that does not exceed: (1) 30 percent a year on that part of the cash advance that is less than or equal to the amount computed under Subchapter C, Chapter 341, using the reference base amount of $500; (2) 24 percent a year on that part of the cash advance that is more than the amount computed for Subdivision (1) but less than or equal to an amount computed under Subchapter C, Chapter 341, using the reference base amount of $1,050; and (3) 18 percent a year on that part of the cash advance that is more than the amount computed for Subdivision (2) but less than or equal to an amount computed under Subchapter C, Chapter 341, using the reference base amount of $2,500. (f) A loan contract under this subchapter may provide for an administrative fee in an amount not to exceed $25 for a loan of more than $1,000 or $20 for a loan of $1,000 or less. The administrative fee is considered earned when the loan is made or refinanced and is not subject to refund. A lender refinancing the loan may not contract for or receive an administrative fee for the loan more than once in any 180-day period, except that if the loan has an interest charge authorized by Subsection (e) the lender may not contract for or receive the administrative fee more than once in any 365-day period. One dollar of each administrative fee may be deposited with the comptroller for use in carrying out the finance commission's responsibilities under Section 11.3055. Amended by Acts 1999, 76th Leg., ch. 62, ?? 7.19(a), eff. Sept. 1, 1999; Acts 1999, 76th Leg., ch. 935, ?? 2.01, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 916, ?? 1, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 211, ?? 2.03(a), eff. June 16, 2003. |
http://www.capitol.state.tx.us/statutes/docs/FI/content/htm/fi.004.00.000342.00.htm#342.201.00
Ok I read all that but in the section with the second #1 it says
Ok I read all that but in the section with the second #1 it says
c) A person is not required to obtain a license under
Subsection (a) if the person is:
(1) a bank, savings bank, or savings and loan
association organized under the laws of the United States or under
the laws of the institution's state of domicile; or
(2) subject to Chapter 651, Insurance Code.
hat they dont have
Quote:Ok I read all that but in the section with the second #1 i
Quote:
Ok I read all that but in the section with the second #1 it says c) A person is not required to obtain a license under Subsection (a) if the person is: (1) a bank, savings bank, or savings and loan association organized under the laws of the United States or under the laws of the institution's state of domicile; or (2) subject to Chapter 651, Insurance Code. hat they don't have |
Ok, well I don't think that GECC is a Federal Bank ( I believe GECC is a subsidiary of General Electric. You would only have to do a public record search with the US comptroller of the currency to see if they are a licensed bank, savings bank under US laws. If they are a licensed state bank, then they are licensed under state laws.
Are hey an insurance company? Once again you would need to find out their true corporate designation, however most Internet payday lenders do not fall in to either of these categories. They are a few that may "rent" a banks charter, but that is even a federal violation.
Here is the WHOIS information on CashDirectExpress.com Quote:Wh
Here is the WHOIS information on CashDirectExpress.com
Quote:
Whois Record Registrant: Government Employees Credit Center, Inc. ATTN: CASHDIRECTEXPRESS.COM c/o Network Solutions P.O. Box 447 Herndon, VA. 20172-0447 Domain Name: CASHDIRECTEXPRESS.COM Administrative Contact, Technical Contact: Government Employees Credit Center, Inc. Whois Privacy and Spam Prevention by Whois Source ATTN: CASHDIRECTEXPRESS.COM c/o Network Solutions P.O. Box 447 Herndon, VA 20172-0447 570-708-8780 Record expires on 18-Jul-2007. Record created on 18-Jul-2005. Domain servers in listed order: NS3.LNHI.NET 65.36.160.18 NS2.LNHI.NET 209.41.170.99 NS1.LNHI.NET 209.41.184.100 |