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Need help with Texas laws

Date: Thu, 04/13/2006 - 09:36

Submitted by cmcdonald
on Thu, 04/13/2006 - 09:36

Posts: 80 Credits: [Donate]

Total Replies: 60


OK guys-

If anyone read my other post about my T&C payment, you know I am in a bind. I have got to get some of these loans dismissed in order to have money to live on.

I have looked at the Texas Attorney general site and the consumer commission site. I guess I am not bright enough to find what I need. I am looking for the laws for Texas that says these PD places have used illegal practices with me and my accounts. I have seen a lot of you cite specific laws in letters that you have used to get the loans marked as paid in full. Please help me find what I am looking for.

Thanks,
Crystal


They are all internet.

Quick Payday
Cash Transfer Centers
ameriloan
Cash Express
GECS
Cashnet
Paycheck Today
Cash Advance


lrhall41

Submitted by cmcdonald on Thu, 04/13/2006 - 09:48

( Posts: 80 | Credits: )


Thanks Polly- any direction you would give would really help. I am going to gather together my bank statements in the meantime to see how much I have actually paid to these crooks.


lrhall41

Submitted by cmcdonald on Thu, 04/13/2006 - 09:52

( Posts: 80 | Credits: )


After you ascertain whether or not they are licensed, look into whether their fees meet the following criteria:

Quote:

Permitted charges: On a cash advance of less than $ 30, an acquisition charge that is not more than $ 1 for each
$ 5 of the cash advance. On a cash advance equal to or more than $ 30 but not more than $100, an acquisition
charge that is not more than the amount equal to one-tenth of the amount of the cash advance and an installment
account handling charge that is not more than $ 3 a month if the cash advance is not more than $ 35, $ 3.50 a
month if the cash advance is more than $ 35 but not more than $ 70, or $ 4 a month if the cash advance is more
than $70. On a cash advance of more than $ 100, an acquisition charge that is not more than $ 10; and an
installment account handling charge that is not more than the ratio of $ 4 a month for each $ 100 of cash advance.


lrhall41

Submitted by polly on Thu, 04/13/2006 - 13:02

( Posts: 1709 | Credits: )


Not to appear dense- But how do you run a "who is" report?


lrhall41

Submitted by cmcdonald on Thu, 04/13/2006 - 13:02

( Posts: 80 | Credits: )


So, let me get this straight...

If the PDL is NOT lisenced in your state, AND/OR they are charging more than what your state allows in interest, AND the total amount you have paid in fees adds up to the original borrowed amount, then you are not legally required to pay them back?

I was looking over a contract from GW Financial Services (one of my PDLs) and it states in the contract that you (the borrower) are bound to the laws of the state in which the LENDER resides and does business, NOT your own state. So, what if all these PDLs are the same way? Do they have legality in that case?

Also, if that is the case, then if, according to THEIR state laws, they are charging me too much interest, is THAT illegal then?

I know these are a lot of questions, but I'm just trying to get everything straight here...


lrhall41

Submitted by Seeing_the_Light on Thu, 04/13/2006 - 13:45

( Posts: 529 | Credits: )


GW Financial Services is also one of mine and I haven't done anything about them yet but I will. I've had that one since 2002 (I'm ashamed to admit) and they've charged me $48 to roll it almost constantly since then (I'm an idiot, I know). Do you know how much that adds up to in fees?? A LOT to say the least. I think from what I've found is that they have to abide by the laws of my state and they have to be licensed in my state. I called them the other day to find out my balance and asked about a settlement and she told me they don't settle, you have to pay it back. Well, I think I've paid it back many many times over.

Keep asking your questions, they will get answered and I find that the more questions are asked the more I understand stuff. There are a lot of really helpful, knowledgeable people here. Good luck!


lrhall41

Submitted by CycloneFan on Thu, 04/13/2006 - 13:51

( Posts: 1155 | Credits: )


thanks. I have paid them $48 every 2 weeks for about 6 months. That's $576. I borrowed $300 from them. According to Texas law, the limit per $100 is $18, and since GWFin charges $16 per $100...that's legal isn't it? Even if they are NOT licensed in Texas? They are listed with T&C now, but have emailed me and told me they don't accept payments through consolidation co's. Let's see if they accept T&C's payment on Monday (after I pay them tomorrow) and then we'll see...

On the plus side, I finally paid the overdraft fees in my old checking account to get it closed, so if any PDLs try to debit tomorrow (a payday) they will be DENIED!! HAHAHA!


lrhall41

Submitted by Seeing_the_Light on Thu, 04/13/2006 - 13:57

( Posts: 529 | Credits: )


Hello Polly,

I am in the State of Washington. So let me get this straight...since Sue found that none of those companies are licensed in her State, she's not liable to pay back any of the companies? What if the companies go by a different name and that name is not the 'licensed' name...how does that work?
So what would Sue do in this situation? This is gettin really interesting and you guys/girls are so fast in responding...this is like a great customer service feeling :)


lrhall41

Submitted by quesik on Thu, 04/13/2006 - 14:22

( Posts: 108 | Credits: )


it all depends on the state where the consumer resides. every state is different. some states do not require a consumer to pay an unlicensed lender, and others require only the principal be paid, it just depends.

this week-end i am going to get my blog up, and it will have links to all applicable laws to all 50 states.


lrhall41

Submitted by polly on Thu, 04/13/2006 - 14:25

( Posts: 1709 | Credits: )


Bumping for Polly-

None of my 8 appear to be liscensed. What would happen if I were to just refuse to pay anymore if I have indeed paid the original loan amount back already?

Crystal


lrhall41

Submitted by cmcdonald on Mon, 04/17/2006 - 08:37

( Posts: 80 | Credits: )


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.


lrhall41

Submitted by polly on Tue, 04/18/2006 - 06:21

( Posts: 1709 | Credits: )


So if I am reading that correctly- they must be licensed to loan in Texas, right?

I'll be honest with you, at this point I am about ready to just quit paying all these places. I have 2 lenders that T&C cannot even find to send my payments to, and still others that keep rasing the amount I owe instead of it going down with my payments. I almost feel like I have done all I can do- and I am quickly getting tired of all this mess.

Crystal


lrhall41

Submitted by cmcdonald on Tue, 04/18/2006 - 06:28

( Posts: 80 | Credits: )


Quote:

Texas Administrative Code


TITLE 7 BANKING AND SECURITIES
PART 1 FINANCE COMMISSION OF TEXAS
CHAPTER 1 CONSUMER CREDIT REGULATION
SUBCHAPTER F ALTERNATE CHARGES FOR CONSUMER LOANS
RULE ??1.605 Payday Loans; Deferred Presentment Transactions

--------------------------------------------------------------------------------

(a) Definitions. For the purposes of this chapter, the following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Check--A check, draft, share draft, or other instrument for the payment of money.

(2) Payday loan or deferred presentment transaction--A transaction in which a cash advance is made in exchange for the consumer's personal check, or in exchange for the consumer's authorization to debit the consumer's deposit account, in the amount of the advance plus a fee and where the parties agree that the check will not be cashed or deposited, or that the consumer's deposit account will not be debited, until a designated future date. This type of transaction is often referred to as a "payday loan," "payday advance," or "deferred deposit loan."

(b) Authorization. A licensee may engage in a payday loan or deferred presentment transaction under this chapter and subject to the provisions of Texas Finance Code, Chapter 342, Subchapter F. A payday loan or deferred presentment transaction is a loan of money. The check given in the transaction may serve as security for the payment of the loan. A person who negotiates, arranges, or acts as an agent for an authorized lender in a payday loan or deferred presentment transaction that has an effective annual rate of greater than 10% is required to be licensed.

(c) Maximum charge. A licensee may charge an amount that does not exceed the rates authorized in Texas Finance Code, ????342.251 - 342.258. The chart in Exhibit 1 provides examples of the maximum authorized rates for loans made under Texas Finance Code Subchapter F. Texas Finance Code, ??342.254 which prohibits other charges applies to this section.

Attached Graphic

(d) Minimum term. A licensee may engage in a payday loan or deferred presentment transaction with a term of not less than 7 days.

(e) Procedures.

(1) If a check is accepted, the licensee must require that the check be made payable to the actual name of the company printed on the license and must be dated the day the loan is made.

(2) The transaction must be documented by a written agreement signed by the borrower and the licensee. The agreement must contain the name of the licensee, the transaction date, the amount of the check, a statement of the total amount charged, expressed both as a dollar amount and as an annual percentage rate (apr), and the earliest date on which the check may be deposited. The agreement must also contain a notice of the name and address of the Office of Consumer Credit Commissioner and the telephone number of the consumer helpline. Additionally, the lender shall provide a notice to the consumer that reads as follows: "This cash advance is not intended to meet long-term financial needs. This loan should only be used to meet immediate short-term cash needs. Renewing the loan rather than paying the debt in full when due will require the payment of additional charges."

(3) The borrower shall have a right to prepay the loan and redeem the check at any time prior to the due date. If the loan is prepaid in full, the lender must refund any unearned finance charges.

(4) A check may not be held for more than 31 days and then subsequently presented to the bank for payment.

(5) The licensee must post a notice of the fee schedule for engaging in a payday or deferred presentment loan.

(f) Conditions. A lender may accept a check to secure payment of a payday loan if the lender complies with the following sections.

(1) Duplicate and multiple loans. The provisions of Texas Finance Code, ??342.501 and ??1.851 of this title (relating to Duplication of Loans) apply to loans made under the authority of this section. In accordance with Texas Finance Code, ??342.501 a lender and a borrower may renew a loan, but the loan must be converted from a single payment balloon loan to a declining balance installment note. Alternatively, the payday loan or deferred presentment transaction may be renewed without limitation to the number of renewals where the effect of the total amount of charge would not exceed the total amount authorized by ??342.252 having due regard for the amount of the cash advance and the time the cash advance is outstanding. The result is that the acquisition charge may only be earned once in a month and the installment account handling charge may continue to be earned on a equivalent daily charge basis in accordance with the limitations of Subchapter F. In lieu of a renewal, a lender and a borrower may agree to extend the maturity date of the existing payday loan or deferred presentment transaction.

(2) Collection practices. A payday loan constitutes a credit relationship for all purposes, including collection. If a borrower defaults, including the return of the check to the licensee from a financial institution due to insufficient funds, closed account, or stop payment order, the licensee may pursue all legally available civil means to collect the debt. Collection practices must be in accordance with this chapter and with the Texas Debt Collection Practices Act, Texas Finance Code, ??392.001 et seq.

(3) Fair lending. A lender must make a good faith effort to assess the borrower's ability to repay the payday loan or deferred presentment transaction under the loan terms.


lrhall41

Submitted by polly on Tue, 04/18/2006 - 06:29

( Posts: 1709 | Credits: )


Quote:

?? 342.251. MAXIMUM CASH ADVANCE. The maximum cash
advance of a loan made under this subchapter is an amount computed
under Subchapter C, Chapter 341, using the reference base amount of
$100, except that for loans that are subject to Section 342.259 the
reference base amount is $200.

Amended by Acts 1999, 76th Leg., ch. 62, ?? 7.19(a), eff. Sept. 1,
1999; Acts 2005, 79th Leg., ch. 1018, ?? 2.22, eff. Sept. 1,
2005.

?? 342.252. ALTERNATE INTEREST CHARGE. Instead of the
charges authorized by Section 342.201, a loan contract may provide
for:
(1) on a cash advance of less than $30, an acquisition
charge that is not more than $1 for each $5 of the cash advance;
(2) on a cash advance equal to or more than $30 but not
more than $100:
(A) an acquisition charge that is not more than
the amount equal to one-tenth of the amount of the cash advance;
and
(B) an installment account handling charge that
is not more than:
(i) $3 a month if the cash advance is not
more than $35;
(ii) $3.50 a month if the cash advance is
more than $35 but not more than $70; or
(iii) $4 a month if the cash advance is more
than $70; or
(3) on a cash advance of more than $100:
(A) an acquisition charge that is not more than
$10; and
(B) an installment account handling charge that
is not more than the ratio of $4 a month for each $100 of cash
advance.

Amended by Acts 1999, 76th Leg., ch. 62, ?? 7.19(a), eff. Sept. 1,
1999.


?? 342.253. MAXIMUM INTEREST CHARGE FOR LOAN WITH SINGLE
REPAYMENT. A loan contract to which Section 342.251 applies and
that is payable in a single installment may provide for an
acquisition charge and an interest charge on the cash advance that
does not exceed a rate or amount that would produce the same
effective return, determined as a true daily earnings rate, as
allowed under Section 342.252 considering the amount and term of
the loan. If a loan that has a term in excess of one month under
this section is prepaid in full, the lender may earn a minimum of
the acquisition charge and interest charge for one month. If a loan
under this section has an initial term of less than one month, the
lender may earn a minimum of the acquisition charge and an interest
charge that produces the same effective return as the installment
account handling charge computed at a daily rate for the term the
loan is outstanding.

Amended by Acts 1999, 76th Leg., ch. 62, ?? 7.19(a), eff. Sept. 1,
1999; Acts 1999, 76th Leg., ch. 909, ?? 2.12, eff. Sept. 1, 1999.


?? 342.254. NO OTHER CHARGES AUTHORIZED. (a) On a loan
made under this subchapter a lender may not contract for, charge, or
receive an amount unless this subchapter authorizes the amount to
be charged.
(b) An insurance charge is not authorized on a loan made
under this subchapter.

Added by Acts 1999, 76th Leg., ch. 62, ?? 7.19(a), eff. Sept. 1,
1999.


?? 342.255. MAXIMUM LOAN TERM. The maximum term of a loan
made under this subchapter is:
(1) for a loan of $100 or less, the lesser of:
(A) one month for each multiple of $10 of cash
advance; or
(B) six months; and
(2) for a loan of more than $100, one month for each
multiple of $20 of cash advance.

Added by Acts 1999, 76th Leg., ch. 62, ?? 7.19(a), eff. Sept. 1,
1999.


?? 342.256. REFUND. (a) An acquisition charge authorized
under Section 342.252(1), (2), or (3) is considered to be earned at
the time a loan is made and is not subject to refund.
(b) On the prepayment of a loan with a cash advance of $30 or
more, the installment account handling charge authorized under
Section 342.252(2) or (3) is subject to refund in accordance with
Subchapter H.

Added by Acts 1999, 76th Leg., ch. 62, ?? 7.19(a), eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 189, ?? 1, eff. Sept.
1, 2001.


?? 342.257. DEFAULT CHARGE; DEFERMENT OF PAYMENT. The
provisions of Subchapter E relating to additional interest for
default and additional interest for the deferment of installments
apply to a loan made under this subchapter. Provided, that on a
loan contract in which the cash advance is $100 or more, instead of
additional interest for default under Subchapter E, the contract
may provide for a delinquency charge if any part of an installment
remains unpaid after the 10th day after the date on which the
installment is due, including Sundays and holidays. The
delinquency charge on a loan with a cash advance of $100 or more may
not exceed the greater of $10 or five cents for each $1 of the
delinquent installment.

Added by Acts 1999, 76th Leg., ch. 62, ?? 7.19(a), eff. Sept. 1,
1999. Amended by Acts 2005, 79th Leg., ch. 1018, ?? 2.23, eff.
Sept. 1, 2005.


?? 342.258. SCHEDULES FOR WEEKLY, BIWEEKLY, OR SEMIMONTHLY
INSTALLMENTS. The commissioner may prepare schedules that may be
used by an authorized lender for the repayment of a loan made under
this subchapter by weekly, biweekly, or semimonthly installments.

Added by Acts 1999, 76th Leg., ch. 62, ?? 7.19(a), eff. Sept. 1,
1999.


lrhall41

Submitted by polly on Tue, 04/18/2006 - 06:32

( Posts: 1709 | Credits: )


This is an amazing company. I went from being told the minimum that I could pay to closeout my original $200 loan was 2 installments of $250 to one payment of $270. I have never negotiated a debt like this. It was a very unprofessional conversation but at least my loan is now closed and they are out of my life.


lrhall41

Submitted by bcspillman on Fri, 08/18/2006 - 13:23

( Posts: 3 | Credits: )


Polly and cmcdonald what did you find out about those lenders and an update? I have the same ones that you do as well
CTC
GECC
ameriloan
GFSIL
Mycashnow
And I have already done all that I know to do with them they wont work with me Im scared to death they will take me to court or something along those lines


lrhall41

Submitted by txtreasure on Fri, 08/25/2006 - 12:57

( Posts: 155 | Credits: )