Reg E vs EFTA

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I read what CNUSA posted and I don't think they are trying to confuse anyone. I think they are trying to explain how a loan can't be conditioned upon repayment of ACH *unless* it's a single payment loan (as this type of loan is not covered in Reg. E and preauthorized transactions). The revocation applies to recurring transactions. A single payment loan does not have recurring transactions. So, because it's a single payment loan, CNUSA does have the right to initiate the transaction to replay the loan and does not have to honor a revocation request. They may still choose to do so but they are not required to as they would be if they had extended a loan with recurring transactions/payments. In that case, yes, the consumer can revoke the ACH authorization they gave initially.

Charvel, you live in the UK. Why are you even trying to answer these posts when they concern US transactions? You have no interest in these unless you work for one of the illegal offshore companies. If you are trying to tell us that we are in the wrong then tell us why you feel that you have the right? You don't even live in the US and have no real knowledge of our laws. You only know what you found on the net. This I find questionable since you are telling us we are in the wrong for advising the citizens in our own country.

Unless you can prove you actually live in the US currently then you are just trying to cloud the waters and will be ignored by those of us on this site.

In case you were wondering how I know you live in Sheffield, UK Charvel, it is listed in your profile. Yes, some of us actually check this out when someone posts things that we know are not right.

That's with regard to the EFTA though, again here is the quote from reg E (205.10) not sure what subsection


(c) Consumer's right to stop payment--(1) Notice. A consumer may stop payment of a preauthorized electronic fund transfer from the consumer's account by notifying the financial institution orally or in writing at least three business days before the scheduled date of the transfer.

It does not say recurring. It simply states you can revoke ACH authorization with anyone through your bank.

1. I worked in banking in the U.S. for 20 years so I am knowledgeable of the laws across the pond.

2. In regards to this section of Reg E:

(c) Consumer's right to stop payment--(1) Notice. A consumer may stop payment of a preauthorized electronic fund transfer from the consumer's account by notifying the financial institution orally or in writing at least three business days before the scheduled date of the transfer.

the key is the reference to "notifying the financial institution"....the financial institution is the consumer's bank (where their deposit account is held) - it is not CNUSA (in this case).

As I've said before, a consumer can place a stop payment with their bank any time they want. That is a separate issue from the right to revoke an ACH authorization with a lender with whom you have taken out a single payment loan.

If I could explain this any better I would because it doesn't sound like it is getting through to some of you.

Charvel,

If you are not working for a US bank and don't currently live in the US, why are you answering these threads? What interest do you have in this. I am confused as to why you even started as you no longer work for any US bank I am guessing? What company do you currently work for if this is so important for you? You don't seem to have any vested interest in this.

As I stated in my post to you in the other thread I have no problem in a good debate but these threads are not the best avenue to do so. You can start your own thread for this or send a private message to one of the moderators. By posting in these threads you are just clouding the issues at hand. Unless that is your intent you are serving no purpose except to show that you don't really understand what you are talking about in regards to illegal lenders.

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jjmcgilvra:

I am trying to help. Quit focusing on where I currently lay my head at night. That has no bearing on whether or not I know anything about the topic. Of which, in this case, I do. In fact, I suggest that I know more than you. You haven't offered your background to me so for all I know you are a go-kart racer in the Northwest and dabble in online forums as a hobby.

The issue that was raised by the initial post was why CNUSA is immune from the laws. Obviously, they are not immune. But, the issue at hand is the issue of ACH revocation with CNUSA. That is key here. Not revocation with the consumer's bank. Again, and hopefully for the last time, you cannot revoke an ACH authorization with the lender for a single payment loan. You can instruct your bank not to pay the item but that is a separate issue. If you agree with the previous 2 sentences then you and I are saying the same thing. But, from what I'm reading in this post, the information being given to the original poster is that CNUSA must honor his/her revocation. That is just not the case and is what I'm trying to help with.

Will it give me more street cred to change my profile to read a US address? If so, that's an easy fix.

when has cashnetusa ever done single/one payment loans?if they are operating as a CSO then they are not subject to pdl laws.however since they are not a pdl(and even say so on their site they are a CSO)then they are not a single/one payment loan,and are trying to BS people.it is obvious that the lymie is only here to confuse people just like cashnet is.