CSO's in Texas, Just so you know!!!
Date: Mon, 04/05/2010 - 18:41
A number of "PDL" companies are legal in Texas, because they operate under the CSO model (the same model that storefront payday loan companies work under, as well as some "credit repair" services).
In the state of Texas, CSO's are governed by Chapter 393 of the Texas Finance Code (and, incidentally, by Title 1 Chapter 74 of the Administrative code, which is identical wording of a few of the Finance Code statutes). The entire text of Chapter 393 can be found here:
http://law.justia.com/texas/codes/fi/005.00.000393.00.html
Condensed into Salient Points:
393.101 A CSO must register with the Secretary of State's office before conducting business, and this registry must be renewed yearly.
393.103 A CSO must allow a consumer to inspect this registration upon request.
393.305 A CSO may not directly or indirectly engage in a fraudulent act, practice, or course of business (such as, perhaps, claiming or implying status as a legal lender in your state?)
393.306 A CSO may not advertise its services if the organization has not filed a registry in compliance with 393.101
393.401-403 A CSO must be issued a surety bond in the amount of $10,000 from an FDIC insured bank in the state of Texas.
393.406 The surety bond must be maintained until the second anniversary following cessation of business.
393.503 A consumer injured by a violation of this chapter is entitled to recover: actual damages in an amount not less than what the consumer paid the CSO, all associated attorney and court costs; the consumer may also, upon prevailing in an action, be awarded punitive damages.
393.504 A violation of this chapter is a deceptive trade practice actionable under Subchapter E, Chapter 7 of Business and Commerce Code.
So, Texans... if you've got a pdl with any company claiming to do business as a CSO, go to this page:
http://www.sos.state.tx.us/statdoc/faqs2800.shtml#cso11
It has really informative FAQ answers, a link to find out if they are registered, and what to do and who to report them to if they're not!!!
Edited so as not to misinform: CashnetUSA has a specific division for Texas business, under the name Cash America Net of Texas, LLC, and they DO currently have a valid registry and surety bond (glad I hadn't sent that letter yet!). I got happy prematurely, it seems... but ah well. I'm leaving the thread up anyway, because it clears up a lot of fogginess about CSO's.
In the state of Texas, CSO's are governed by Chapter 393 of the Texas Finance Code (and, incidentally, by Title 1 Chapter 74 of the Administrative code, which is identical wording of a few of the Finance Code statutes). The entire text of Chapter 393 can be found here:
http://law.justia.com/texas/codes/fi/005.00.000393.00.html
Condensed into Salient Points:
393.101 A CSO must register with the Secretary of State's office before conducting business, and this registry must be renewed yearly.
393.103 A CSO must allow a consumer to inspect this registration upon request.
393.305 A CSO may not directly or indirectly engage in a fraudulent act, practice, or course of business (such as, perhaps, claiming or implying status as a legal lender in your state?)
393.306 A CSO may not advertise its services if the organization has not filed a registry in compliance with 393.101
393.401-403 A CSO must be issued a surety bond in the amount of $10,000 from an FDIC insured bank in the state of Texas.
393.406 The surety bond must be maintained until the second anniversary following cessation of business.
393.503 A consumer injured by a violation of this chapter is entitled to recover: actual damages in an amount not less than what the consumer paid the CSO, all associated attorney and court costs; the consumer may also, upon prevailing in an action, be awarded punitive damages.
393.504 A violation of this chapter is a deceptive trade practice actionable under Subchapter E, Chapter 7 of Business and Commerce Code.
So, Texans... if you've got a pdl with any company claiming to do business as a CSO, go to this page:
http://www.sos.state.tx.us/statdoc/faqs2800.shtml#cso11
It has really informative FAQ answers, a link to find out if they are registered, and what to do and who to report them to if they're not!!!
Edited so as not to misinform: CashnetUSA has a specific division for Texas business, under the name Cash America Net of Texas, LLC, and they DO currently have a valid registry and surety bond (glad I hadn't sent that letter yet!). I got happy prematurely, it seems... but ah well. I'm leaving the thread up anyway, because it clears up a lot of fogginess about CSO's.
Appreciate the info, you can never tell people enough about the
Appreciate the info, you can never tell people enough about the CSO's.
LOL I'm ridiculously proud of myself, and kicking myself that I
LOL I'm ridiculously proud of myself, and kicking myself that I didn't look for this website months ago!
We're glad to have you, you will be very valuable as a member si
We're glad to have you, you will be very valuable as a member since you have first hand experience!