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Magnum Cash Advance AKA Military Financial

Date: Tue, 06/29/2010 - 06:43

Submitted by anonymous
on Tue, 06/29/2010 - 06:43

Posts: 202330 Credits: [Donate]

Total Replies: 11


I took out a loan for 1200 with military financial a few months ago. I defaulted on the loan for a couple of pay periods when things got tight. When I defaulted, I got an email from them stating that I had 5 days to respond and set up a payment arrangement before I was reported to the top 3 credit bureaus. I have already paid of the principal amount but due to late charges accumulated when I defaulted, I still owe $3000.

I'm in the military stationed overseas but I am a VA resident. Would I go by the laws of the state of residence or the location of where I applied for the loan? Also, Military Financial states on their website that they are not a payday lender but considered a rapid line of credit which they claim is perfectly legal. What are my next steps? Are they in fact legal? Or should I just send them notice that I have paid my debt and no longer obligated?

Thank you so much in advance!


When you signed up for the loan, what address did you use? And, FYI, Magnum Cash has nothing to do with the Military, it's a bogus name they created hoping to lure people in. Also, you might want to read the thread below regarding payday loans and Military personnel.
http://www.debtconsolidationcare.com/paydayloan/military-pdl-laws.html
If you have paid your debt, then your next move is to close your account because they will not stop debiting your account just because you have paid them off, in fact, your account will never be safe again. My advice to you is to close that account and open a new one somewhere else.


lrhall41

Submitted by Shazzers on Tue, 06/29/2010 - 06:51

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I thought so too until I saw this posted on their website:

Quote:

It is illegal to charge more than 36% for a closed end loan consumer loan that is less than 90 days for repayment. A Rapid Line of Credit is not a closed end loan. It is a revolving line of credit that allows you to access the available funds in your account at any time


lrhall41

Submitted by on Tue, 06/29/2010 - 06:52

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Quote:

Originally Posted by Anonymous
Thanks for the link Shazzers. I'm off to read. But quick question: are they in fact considered a payday lender since their payments are set up in installments?

I know that Magnum cash is notorious for extending payday loans to people in states where they are prohibited. I need to do a little more research, then I will get back with you.


lrhall41

Submitted by Shazzers on Tue, 06/29/2010 - 06:56

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Quote:

Originally Posted by Anonymous
Thanks for the link Shazzers. I'm off to read. But quick question: are they in fact considered a payday lender since their payments are set up in installments?


No. A PDL is short-term loan paid off in one payment or renewed (rolled over) by paying the fee only.


lrhall41

Submitted by PDLOwner on Tue, 06/29/2010 - 07:01

( Posts: 1049 | Credits: )


Quote:

Originally Posted by Anonymous
Thank you so much Shazzers.

You're welcome. The thing is, whether it is an installment loan or a payday loan they are still above and beyond the usury laws, how can that be legal? Magnum Funding/Cash Advance is notorious for not following the payday loan laws, they are also notorious for making false threats and harassing their customers after default. Just looking at the amount they are saying you owe, is a big red flag. You might want to mention this to your commander.


lrhall41

Submitted by Shazzers on Tue, 06/29/2010 - 07:25

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