CashNet USA - Ohio

I don't think CashNetUSA is a payday lender, therefore the payday loan laws would not apply to them. I believe they are operating as a CSO (Credit Service Organization) and are usually perfectly legal in what they charge. You may want to call the Ohio DFI to be 100% certain.

CashNet apparently is a CSO. I've contacted the Ohio Division of Financial Institutions to find out what my legal rights are and I'm awaiting a response. The letter I sent to CashNet included the C&D language as well as this:

[INDENT]I recently sent a letter regarding my loan and that I didn't believe the loan was legal in Kentucky. Apparently, when I completed the application, I put in my work address in for my home address. Since I didn't print out the application, I cannot confirm this. However, as you will see, driver's license is from Kentucky and I am in fact a resident of Kentucky.

The legal amount that could have been charged to my loan is the principal amount, even IF your Internet pay day loan were legal anywhere in the U.S.. To date, I have paid $785.97 on the original loan of $1,000. Even if you are considering me a resident of Ohio, the legal interest rate is 28%. Please forward to me a proposal to pay the balance of $214.03 plus the 28% interest in writing.
[/INDENT]
Is there something more I should do? I'm awaiting a response from them as they are saying my loan balance is $1,261.99. If they are in fact allowed to charge this amount, should I contact a Langhorne and Associates to clear it up? Just curious...and thanks in advance for the assistance.

slm

I don't think interest rates are regulated for CSO's, unfortunately, but I would wait for a repsonse from your DFI. You are definitely going to have to pay them back, perhaps you could request a hardhip payment plan.

So, would I have to pay the $1261.99 or the balance on the $1,000 loan? Just want to plan accordingly...

Thanks,
slm

I sent them an e-mail explaining that I would send to them $100/month until the balance of the loan was paid and this was their response:

[INDENT]Dear Sherri,

Feel free to send what you can afford when you can afford it, as it will be applied to your account. However, it will not be considered an acceptable payment arrangement and collection procedures will continue.


If you have any questions or concerns, our collections team is available seven days a week via phone and email.

CashNetUSA Collections Department(888)801-9078 Direct Line(866)350-0110 Fax
www.cashnetusa.com
Mon-Fri: 6am to 11pm CST
Sat-Sun: 8am to 8pm CST

[/INDENT] My question is what kind of collection procedures can I expect?

Thanks,
slm