Payday loans in Texas
Date: Wed, 05/14/2008 - 07:43
PayDayOne - $1000, paid $180 to date, will owe $244 on May 30th
PayDayMax - $750, will owe $143 on May 30th
MyCashNow - $750, will owe $179 on May 30th
My question is, are all of these legal in Texas? I believe PayDayOne is, and they also have a CSO.
I can not find a physical address for PayDayMax or MyCashNow. I have emailed them stating that I was not able to print out a copy of my Loan Agreement and asked if they would email me on. PayDayOne is charging me a total of 455.30% interest, but I know that includes the CSO interest, so I am not sure if they are overcharging or not. They also allow extensions, as do the others, which by looking at the Texas law, I don't think Texas allows rollovers. ??
I have signed up with PDL Assistance to work on getting settlements for these payday loans before I get into a cycle of huge payments that will take me forever to start making a dent in (I know, I've been there before and paid 6 off with huge interest amounts) and I can not afford it now. I have read some postings that have said you should close your bank account, and then others say that if you are in Texas, you can not close your bank account or they can prosecute you for fraud. What should I do? Can I send a C&D letter to these companies revoking my ACH authorization? If I have not paid them yet, then I have not overpaid and they have not broken any laws. I don't know what is the best thing for me to do, and I feel sick to my stomach right now with worry. I signed up with PDL Assistance yesterday and felt relieved, but now am worried that maybe I can't do that if I haven't paid to them (except the $180 to PayDayOne). Someone please advise. If you have a copy of a C&D letter that I can send to these, I would appreciate it, or whatever form I need to send to get them to stop drafting from my bank account. I really hate to close my account, as I have had it for over 10 years, and I have house bills set up to draft out of there and really hate to go change all of those.
Here is what I found on Texas law: As with other states, Texa
Here is what I found on Texas law:
As with other states, Texas payday loan laws state that a lender must obtain a license before they operate. The licensing laws for payday loan lenders in Texas are the same as stated under the Texas Finance Code Ann. 342.
Texas payday loan laws have different requirements on fees than other states. Under Texas law a lender is allowed to charge no more than $1 per $5 that????????s borrowed for loans under $30. For loans over $30 but no more than $100, a service fee of one-tenth the amount can be applied. And for cash advances over $100, a fee of no more than $10 can be charged.
Texas payday loan laws also permit handling charges in addition to service or interest fees. Under Texas law, a $3.50 handling charge can be added each month to the total amount as long as the amount of the loan doesn????????t exceed $35. If the cash advance is over $35 but no more than $70, monthly handling charge of $4 can be applied. For loans over that amount, a $4 fee can be added each month for every $100 that????????s borrowed.
Payday loan lenders in Texas must post a notice with a fee schedule along with a written agreement. The agreement must contain the name of the lender, the transaction date, the amount of the check, an itemization of fees, the earliest date the check must be deposited, and a total amount expressed in U.S. dollars and as an annual percentage rate. The agreement form should have the name, address, and phone number of the Consumer Credit Commissioner. Texas payday loan laws also require that the agreement form provide a notice that sates payday loans are intended for short-term cash needs.
Texas payday loan laws prohibit lenders from dividing one loan into two loans for the sole purpose of collecting higher interest fees. The maximum term limit for payday loans in Texas is 31 days. The minimal term limit for payday loans is 7 days.
Under Texas law, a lender cannot pursue criminal charges to collect on a debt. Also, a payday loan lender is limited as to how many times a loan can be renewed. Currently under Texas law, lenders are allowed to renew a payday loan one time each month.
Pay Day Max is out of Granada. I did not find a license for the
Pay Day Max is out of Granada. I did not find a license for them in Texas. PayDay One is licensed in Texas, there for should be abiding by Texas laws.It looks lke they are overcharging fees by $8 if I am reading the law right. Texas is very confusing. this is from Payday One site "In Texas, PayDay One Express, LLC is a Credit Service Organization (CSO) registered with the Texas Secretary of State. We are not a lender, and cannot promise that the lender will extend credit to you. The lender makes loans at 10% per annum simple interest. We are obtaining an extension of consumer credit for you from the lender. For this service, PayDay One charges a fee of $22.50 per $100 of the Amount Financed." MyCash Now also does not seem to be licensed and are operating out of Granada.
I have worked out an EPP with PayDayOne, as I had seen their lic
I have worked out an EPP with PayDayOne, as I had seen their license on their website for the State of Texas. Their website at least has a physical address and such on it.
As for PayDayMax and MyCashNow....what can I do in regards to them operating out of Granada? Can you tell me what website you found that information on? I wanted to email or fax them a letter tomorrow regarding payment arrangements, but if they are not legal to operate in Texas, what can I do?
aggie. . posted on the post regarding this. If they are not leg
aggie. . posted on the post regarding this. If they are not legal in Texas, and I am not sure about that as I don't like interpreting the laws, I would call ACHC and tell them what is going on. It can do no harm in trying to get somewhere with them. You have revoked your authorization with them, correct? You can't do anything about them operating out of Granada. It just is what it is. Call Credit Protection Depot and tell them that they are not legal, if that is to be true. I had an advantage in this situation, I live in New York and PDLs are clearly prohibited. I do think that had an impact on entire situation for me. But don't give up. These people can be beat at their own game. The wheels of justice turn very slowly but it can be done.
Payday One is not overcharging - They are operating as a CSO.
Payday One is not overcharging - They are operating as a CSO.
This means that Federal Law allows their fees to not be used in the calculations for interest.
The interest charged is only 10% . . . . It's the fees that are $22.50 . . . And that cannot be considered as interest.
They are operating 100% within the law to charge what they do.
