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How do I respond to this???????????????

Date: Thu, 07/23/2009 - 11:39

Submitted by anonymous
on Thu, 07/23/2009 - 11:39

Posts: 202330 Credits: [Donate]

Total Replies: 5


I am in so bad with the payday loans I dont know what to do. I found this forum, and have been reading as many posts as possible. I cant afford to use a consolidation company. So I am trying to do this myself.

Yesterday I emailed CashNetUsa with a copy of the letter to revoke ach agreement (I found in the do it yourself section here)

Today they sent me this email

The ACH Authorization can only be revoked AFTER we have received payment in full of the amount owed. Because our advances are single payment advances (that is, we advance a sum of money that is to be repaid in a lump sum), we are permitted to require ACH repayment in accordance with the federal Electronic Funds Transfer Act ("EFTA").
Under The EFTA, a lender cannot require a consumer to repay a loan by means of preauthorized electronic funds transfers as a condition to approving the consumer’s loan. The term “preauthorized electronic funds transfer” is narrowly defined by the EFTA to mean “an electronic funds transfer authorized to recur at substantially regular intervals.” As explained by the Federal Reserve Staff in its official commentary to the EFTA, “Creditors may not require repayment of loans by electronic means on a preauthorized, recurring basis.” 12 C.F.R. 205, Supplement I – Official Staff Commentary, at 10(e) (1) (Loan Payments). As a one-time payment, the repayment of a CashNetUSA advance is not encompassed by the EFTA’s definition of “preauthorized electronic funds transfer,” and is therefore permitted under the EFTA.

How do I respond to this???? Are they correct that I can not revoke the agreement?


Other people have posted that they have recieved the same letter from CashNetUSA. I hope you have closed your bank account and secured you money before you sent them the letter right? If so then just email them back and tell them the bank closed your account and you don't have a new one so you will need an alternative way to send in your payments.


lrhall41

Submitted by resqume1 on Thu, 07/23/2009 - 12:48

( Posts: 324 | Credits: )


Very good first step! Do NOT in any way, give them the number to your account, as they will try to get it. Now is this the only PDL you have? I would figure out a reasonable payment plan that you can afford, and let them know, either in writing or by phone. I would also write what's called a cease and desist letter, which will stop the collection calls you could get. This spells out how they contact you and when.


lrhall41

Submitted by kscornell on Thu, 07/23/2009 - 17:48

( Posts: 4407 | Credits: )