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I took at loan out at cashnetusa which has a apr of 460.16% for a 14 day loan of and Arizona (where I live) legal rate under this amount, I think 459%. I am new to this but isn't that illegal, that cashnetusa is charging more interest that my state allows. I have heard from friends, who have spoken to lawyers, that you shouldn't even pay off the loan because the interest is illegal.
Is this correct?




I would double check as CashNetUSA operates as a CSO and not a payday loan lender. Therefore, they don't have to follow the payday loan laws for the interest. They are legal and will collect.

Sub: #1 posted on Mon, 09/08/2008 - 06:16

julie_1972 julie_1972

(Posts: 42 | Credits: )

Cash Net USA is only a CSO in certain states. The rest of the states they are a payday loan lender.

The apr isn't a max amount, it's only an example amount. It's the APR for a 14 day loan. Your loan may not be exactly 14 days.

What they can legally charge is 15% of the face value of the loan. Meaning, if your loan is $300, then they can charge you $352.95.

The law for Arizona caps the fees at 15% of check value, or loan value, which means the APR can vary depending on the length of the loan.

Cash Net USA is legal in Arizona, and can take steps to collect the full amount.

Sub: #2 posted on Mon, 09/08/2008 - 06:43

goudah2424 goudah2424

(Posts: 7936 | Credits: )

Great advice Goudah!

Sub: #3 posted on Mon, 09/08/2008 - 07:53

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