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Please Help with PDLs. Not behind yet, but getting close.

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I live in Texas. I have 5 PDLs. Three storefronts and 2 internet. I have been paying interest, principle, and reborrowing to cover these loans for over a year. I need to do something quick. I recently had a major repair cost on my vehicle and had to reborrow to cover everything. My interest alone pretty much eats my paycheck every time at this point.

1. Advance America $1000/current
2. Ace $1000/current
3. Check N Go $1000/current
4. CashNetUSA $1000/current
5. Payday Max $500/current

My next payday is 08/07 and I will be in a serious bind if I pay only the interest on each loan.

I would appreciate any guideance anyone may have on how to approach solving my predicament. I have had my bank account for approximately 12 years with Chase. Does anyone have any experience with any of these companies with obtaining extended payment plans?

Any help is appreciated.

[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.[/quote]

Advance America, Ace, Check n Go, and Cash Net USA are all CSO's. This means that they are 100% legal in what they are charging. You will need to make arrangements to pay them off.

Sub: #1 posted on Thu, 07/31/2008 - 02:36

goudah2424 goudah2424

(Posts: 7936 | Credits: 1224.93)

All the CSO's are also members of the CFSA, so you can call them at least 3 or 4 days before your due date and request an Extended Payment Plan. This would allow you to pay off the loan with no additional fees in 4 equal payments.

Sub: #2 posted on Thu, 07/31/2008 - 02:37

goudah2424 goudah2424

(Posts: 7936 | Credits: 1224.93)

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