Desperate in Tx
Date: Tue, 11/24/2009 - 04:47
I had pd over & over into these loans for a couple of years until I finally defaulted (in '07 I think). Sent letters explaining situatons to all 3 and asked to receive communication via email or USPS only. Haven't heard much from Payday One (knock wood) except emails.
Last week I received a call from Federal Recoveries about Cashnet & the woman was very sweet. She said she'd been there & would like to help me before "it reached (she named my hometown)." Not sure if she meant a warrant or summons. She said I owed $1500 & needed to secure a cking acct or credit card to put a hold on the acct. She said she knew I would want to work this out since she saw that I worked for a bank (I know, but it's not easy getting loans @ work).
Needless to say when she mentioned my home town & job I was frightened, so I called back to make arrangments. I got a prepaid debit card and gave her the #'s and agreed to $104/month to pay off the $1500 debt.
Now the problem...I'm all ready in financial straits w/ my mortgage & extra medical bills (I'm pregnant & must see a specialist because I'm 39 & have gestational diabetes). The baby was an unexpected blessing. I had allready told her my situation.
Bottom line....I just can't fork out the money right now. I have pd so much into these loans that I'm sure I have pd much more than what I borrowed. I tried to look this company up online to get an address to write them cos I'm scared to talk to them again.
Is it too late to back out of this aggreement? How do I handle this situation at this point? I'm afraid to get served a summons at work.
I'm going to research exactly what I've borrowed & pd & when. Advice Please! Thanks for your invaluable service.
I
I am new here, but I would start by determining if this pdl is l
I am new here, but I would start by determining if this pdl is legal in your state. You can find out by checking the TX Attorney General's website. If you have not, look on the first page of this section of this site and read the Stickys, follow the instructions and links there and you can also do a search for TX for posts of others who have dealt with issues in your state. Good luck. I read something here in one of the posts, where the poster wrote, "If you don't know your rights, you have none." Read and read here before you do anything. Remember to go to jail, you first have to go to court. And to go to court, you have to be served. Find out if these people are legal to have given you the $$ in the first place. Find your leverage. Defaulting on a loan, is NOT a felony unless it is fraud and a verrrrry large amount of $$. Bernie Madoff, you are not.
Where you should start
maryellen
Thanx for the advice. I believe Cashnet is a legal PDL in Tx. I'm dealing with Federal Recoveries now, however. Do the same rules apply? I don't want to avoid my debt, although I have bitter resentment because I believe I have paid more than enough in fees and interest. That resentment makes it easier to pretend the debt doesn't exist plus the fact that I have no extra money to give right now.
I'm going to call them & try to get an address & explain that I need more time to adjust my budget. I think my priorities should be catching up on my mortgage & getting through the co-pays for my extra dr visits to the perinatal center. Wish me luck.
Anymore input regarding this collection agency would be greatly
Anymore input regarding this collection agency would be greatly appreciated. Federal Recoveries ...their agents are good...no bullying. In fact they are very nice & understanding (an act I'm sure). I plan on following the advice on this site & sending the appropriate certified letters to buy more time, if nothing else. Hopefully they are willing to work with me and give me an address. If they don't, what would be my next step? Can't send letters without an address.
CashNetUSA is registered as a CSO (Credit Service Organization)
CashNetUSA is registered as a CSO (Credit Service Organization) in Texas, that means the pdl laws do not apply to them, unfortunately their interest rates aren't regulated either so they are usually legal in what they charge. Who are Federal Recoveries collecting for? Did you ever receive a letter of collection via the mail from this collection agency? ALL collection agencies are required by the FDCPA to send out a dunning letter (letter of collection) within 5 days of their first initial contact with the debtor, in this letter it should state the name of the commpany for which they are collecting. The FDCPA state a debtor has 30 days from the time they receive their dunning letter to send out a debt validation letter to the CA. Make sure you exercise your rights and make them validate the debt BEFORE you do ANYthing. NEVER admit to owing a debt over the phone, request a letter of collection. If they refuse, then file a complaint against them with the FTC.
maryellen
Thanks so much for the advice. I believe they are collecting for Cashnet. I have not received anything by mail.
I will be cancelling my preloaded debit card today. I left a message with Federal Recoveries today asking for an address & advicing them that I would not be able to make the payments as arranged.
Again, thank you so much for the invaluable advice on this site. You bring hope to those us desperately lost & afraid. God bless you all!
Quote:Originally Posted by AnonymousThanks so much for the advic
Quote:
Originally Posted by Anonymous Thanks so much for the advice. I believe they are collecting for Cashnet. I have not received anything by mail. I will be cancelling my preloaded debit card today. I left a message with Federal Recoveries today asking for an address & advicing them that I would not be able to make the payments as arranged. Again, thank you so much for the invaluable advice on this site. You bring hope to those us desperately lost & afraid. God bless you all! |
Just make sure they follow the FDCPA, google it and read up on it so you will know your rights and how to respond correctly.