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Help in Florida

Date: Fri, 11/07/2008 - 08:20

Submitted by anonymous
on Fri, 11/07/2008 - 08:20

Posts: 202330 Credits: [Donate]

Total Replies: 10


I HATE to reinvent the wheel when all of you on here have worked so hard to keep all this information posted, but I have been over and over these boards and am still not sure how to proceed. I have the following loans, all of which are past due because my bank account was closed.

Geneva Roth - $400
ameriloan - $300 (have paid a total of $270)
Cash Net - $500 (have paid $624.91)
SJM Marketing - $300
GECC(?) - $300 (not sure who this company is, that's the name under which the deposit into my account was made)
Think Cash - $2250 (have paid $1351.70)

I called the Florida Department of Financial Services and was told that they don't regulate Internet lenders. Is that true? Does that make them legal? A lot of the information I read on the site indicated that they aren't, but under what law or rule? I hope to be able to pay back the principle amount on all of these, but there is no way I can pay all the fees, etc. Where do I begin? It doesn't appear to me that Florida law helps me

Thank you so much for your help and all your hard work on this forum.


Hi,
I will post the pdl laws for FL in a moment. Internet lenders must be licensed to lend in FL, but they also have some companies that are acting as CSO's. I will post that info as well. Then we can look at the list & see who is legal/illegal.

I can tell you right off that bat the ThinkCash is legal. They are backed by the First Bank of DE. You will need to make some payment arrangemenets with them as they can take action. I have an account with them, once my payment was about 90 days past due, I was able to set up an arrangement where they stopped the fee's & broke the remaining balance into 6 payments. One more to go and I will be free of them.

Is the other company CashNet USA? If so then I believe they are legal as well & you would need to work with them too.


lrhall41

Submitted by dawnlango7 on Fri, 11/07/2008 - 08:43

( Posts: 1147 | Credits: )


Here are the payday laws for FL:
[quote]Quote:
Florida State Information

Legal Status: Legal

Citation:
Fl. Stat. Ann. ???? 560.401 et seq.; Rule 69V-560.901-912

Loan Terms:
Maximum Loan Amount: $500
Loan Term: 7-31 days
Maximum Finance Rate and Fees: 10% + verification fee
Finance Charge for 14-day $100 loan: $15
apr for 14-day $100 loan: 390%

Debt Limits:
Maximum Number of Outstanding Loans at One Time: One
Rollovers Permitted: None (cannot rollover)
Cooling-off Period: 24 hours
Repayment Plan: Yes

Collection Limits:
Collection Fees: All charges imposed on the lender by any financial institution; lender not entitled to treble damages
Criminal Action: Prohibited

Where to Complain, Get Information:
Regulator: Florida Office of Financial Regulation
Address: Division of Securities and Finance, 200 E. Gaines Street Tallahassee FL 32399
Phone: (850) 410-9805
Fax: (850) 410-9748
Regulatory Contact: ,


Emails to and from the DFI:


Hello,

Do internet based payday loan lenders with no physical location in FL need to be licensed by FL to lend legally to FL consumers? I am trying to help a friend with a huge mess. She has several internet payday loans, and they are saying that they only have to be licensed in their state, and that they can follow the laws of their state, not FL's laws. What is correct? Any information would be very much appreciated!

Thanks!

Reply:

She can file a complaint through our website at flofr.com and under 'helpful information' click on file a complaint. Then click on
finance related and you can download the form. Or click on money transmitters and call the 1-800 number. The Office will review her complaint when received. All lenders must be licensed by Florida, regardless of location, however, the current payday loan laws in place do not address internet businesses. The department is currently looking at other laws to apply to them.

She may also wish to contact Legal Aid in her area, to determine what recourse she may have.

If you have further questions, please contact this Office.

Office of Financial Regulation
Pam Henley
Financial Speci alist
(850) 410-9805

What does this mean?

Internet based companies must be licensed by FL.

No Rollovers are allowed.
[/quote]


lrhall41

Submitted by dawnlango7 on Fri, 11/07/2008 - 08:45

( Posts: 1147 | Credits: )


Here is the info on CSO's:
Quote:

Quote:
What is a CSO Credit Services Organization
In essence, a CSO or Credit Services Organization is defined by the Texas Credit Services Organization Act (Section 393 of the Texas Finance Code) as an entity or person that provides one of the following services:

Improving a consumer's credit history or rating
Obtaining an extension of consumer credit for the consumer
Providing advice or assistance to a consumer regarding the previous two services

An important aspect of the CSO or Credit Services Organization model is that there IS NO LICENSING required by the state! CSO's are required to "REGISTER" with the Secretary of State, they are NOT licensed, AND THEIR FEES ARE NOT REGULATED.

How does the CSO Credit Services Organization work with payday loans?

The CSO Credit Services Organization operates as a broker, much as they did when partnering with the banks (payday loan bank model). The Texas Credit Services Organization Act (CSOA) allows the payday loan lender to register as a CSO and act as a loan broker. Thus, the CSO, previously a payday loan company, can make loans via consumer lending companies that are UNREGISTERED and UNLICENSED. The CSO Credit Services Organization acts as a broker for the consumer in need of funds by issuing a "letter-of-credit" on behalf of the consumer to a lender. This third-party unregistered lender funds the "loan" brokered by the CSO "broker".

Typically the CSO Credit Services Organization collects 3 fees:

A referral fee for referring the consumer to the unregistered, unregulated lender that actually funds the "loan". This is not stipulated by any law but is currently $20 to $30 per $100

An application fee for filling out the CSO documents; typically $10 per $100

The interest on the "loan"; Texas state law caps this at $10 per $100.

The CSO Credit Services Organization model arises from a U.S. Fifth Circuit Court of Appeals opinion, in Lovick vs. Rite Money, which held that payments to a registered CSO loan broker could not be treated as interest


lrhall41

Submitted by dawnlango7 on Fri, 11/07/2008 - 08:46

( Posts: 1147 | Credits: )


Here is some additional info for you, I will check on the other companies you have to see who is/isn't legal :D
Quote:

Quote:
What should you do?
Close your account asap, if you are unable to close your account, go into your bank and ask to speak with the Branch Manager, tell him/her you need a hard debit block placed on your account immediately! Explain that you are revoking ACH authorizations from unlicensed/illegal companies, and have learned these companies are notorious for ignoring revocation, therefore it is important to BLOCK any withdrawal attempts on your account to protect your interest. This is your privilege, do not accept no for an answer. The following link will provide you important information regarding closing accounts. CLICK HERE

What next?
AFTER your account is secure send each pdl (the unlicensed and illegal) an email similar to THIS (please scroll down to locate letter template). Tailor this letter to your needs, and try to write it with the same basic concept in your own words. You will need to research and locate email addresses/physical addresses if you don't already have them, I suggest that you type the name of the pdl (example: "oneclickcash address") in the search box in the upper right hand corner of this forum. You may also search for addresses HERE at the Better Business Bureau.

File complaints: Most of the time, you can file a complaint online with the following, I encourage you to follow through with doing so, you will need to search the Internet for your state Attorney General's website, however, here are links to file complaints for the FTC, Online complaints: Federal Trade Commission., and the BETTER BUSINESS BUREAU.

Keep in mind that you may not receive a response for days, or even weeks, or, you may receive harassing and threatening phone calls. I have found the best way to deal with this is not to respond or reply, simply hang up.

Side note: If you have paid an illegal/unlicensed payday lender above and beyond the principal amount you borrowed, it might be a good idea to demand a refund and a paid in full letter/receipt. You may or may not get one or both. It still doesn't hurt to include that tidbit in your letter.


lrhall41

Submitted by dawnlango7 on Fri, 11/07/2008 - 08:59

( Posts: 1147 | Credits: )


The laws posted above do not apply to internet lenders. They are for the storefronts in Florida. The internet lenders fall under the Florida Consumer Financial Act section 516 according to the FLDFS. This was just amended recently and I am trying to get an interpretation but have not been successful so far. I will try again and let you know! Your accounts will be turned over to collection agencies. When they are PM me and I will refer you to a Florida attorney.


lrhall41

Submitted by Frogpatch on Fri, 11/07/2008 - 09:05

( Posts: 5381 | Credits: )


Will that updated law apply if they are not legal?

I checked on the companies & this is what I found:
Geneva Roth - not licensed/legal
ameriloan - not licensed/legal
SJM Marketing - not licensed/legal
GECC - ? I'm thinking that aren't licensed either, hopefully someone will correct me if I am wrong
CashNet - legal
thinkcash - legal


lrhall41

Submitted by dawnlango7 on Fri, 11/07/2008 - 09:35

( Posts: 1147 | Credits: )


From what I have been told the law says that they must be licensed regardless of geographic location and if they are not the loans are non collectable! I emailed Sam Whited, a manager, at the Florida Division of Financial Services a few minutes ago and will post his answer when and if I get it. He did not reply the last time, although he has always been responsive in the past.
I live in Florida and was in a similar situation as downbutnotout a year or so ago. I am free and clear today. There is light at the end of the tunnel. I will help as best as I can.


lrhall41

Submitted by Frogpatch on Fri, 11/07/2008 - 09:47

( Posts: 5381 | Credits: )


Thanks for all your helpful info - I am totally confused as to the distinction b/w a CSO and a PDL. As I read Florida Statute Chapter 516, 18% per annum is the absolute MOST that any licensed lender can charge for a loan transaction. That means that the most I am required to repay on a $500 loan from a Florida-licensed company is the principal plus $90 for a total of $590.00 (if I am doing my math right). At this point I have already paid more than that, and they are demanding that I pay still MORE. Also, when they deposited the money into my account, they (or possibly the bank) specifically designated it as a "Payday Advance." As I see it, whether they are a PDL or a CSO they are still not following the law and I shouldn't have to pay more than 18% interest. Am I missing something?


lrhall41

Submitted by on Fri, 11/07/2008 - 11:09

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