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anybody knows how to deal CSO`s in Texas

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[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]

Pretty much, the main thing to keep in mind is to keep up communication with these places. They are legal, so you will need to make payment arrangements. Tell them the truth, that you are overextended financially, but are commited to fulfilling your financial obligations. Tell them what you can afford to pay a month, and be realistic. Don't promise more then you can reasonably afford.

Keep in mind that these places are used to people defaulting. It's not uncommon. So as long as you are making an effort to pay off the loans, you should be alright.

Sub: #1 posted on Thu, 07/31/2008 - 02:26

goudah2424 goudah2424

(Posts: 7936 | Credits: 1224.91)

Cash Net USA will probably be the hardest to deal with. They have a tendancy to not agree to payment plans. What most people have done is just send them $X per month anyways until they are paid off. Cash Net USA will accept the payment and apply it to your account.

Sub: #2 posted on Thu, 07/31/2008 - 02:27

goudah2424 goudah2424

(Posts: 7936 | Credits: 1224.91)

Since if I'm thinking correctly, you also have some unlicensed pdl's to deal with, you will need to close your checking account that these places have access to.

This will allow you to pay off the legal loans on your terms, not theirs. Remember, food, rent, and necessecties come before unsecured debt on the priority scale. Do what you can to pay off the loans, but not at the risk of losing your home or starving.

Sub: #3 posted on Thu, 07/31/2008 - 02:29

goudah2424 goudah2424

(Posts: 7936 | Credits: 1224.91)

http://www.debtconsolidationcare.com/paydayloan/close-acc ount.html

That thread above has some important info you need to know before you go to the bank to close your account. Please read it.

Sub: #4 posted on Thu, 07/31/2008 - 02:30

goudah2424 goudah2424

(Posts: 7936 | Credits: 1224.91)

you are right, I have two illegal ones and planning to send them this letter. Below. Should I send this letter to BBB, state general attorney and my bank at the same time?. I closed my account yesterday. It is credit union and she told me they cant force open the account. I read the forum you sent before and asked her about it. the moment she heard about the word pdlshe was very helpfull. I think she saw before what they do to people. so I assume, I am safe on that side. For the legal ones should I also send a similar letter telling them I am revoking the checking account and wont to negotiate. or should I call them first? Thank you so much, I think I am starting to understand. and I am student and go through what you said about starving. I wont let it happen again to me. Thank you again

DATE

Name of PDL
Address


After doing research on internet payday loan laws in the state of Texas, I have found that your internet payday loans are actually illegal. I have also found the following laws to be true applying to payday loans in the state of Texas in general:


Texas State Information

Legal Status: Legal

Citation:
7 Tex. Admin. Code ???? 1.605; Tex. Fin. Code Ann. ???????? 342.251 et seq. and 342.601 et seq.

Loan Terms:
Maximum Loan Amount:
Loan Term: 7-31 days
Maximum Finance Rate and Fees: $10 per loan + 48% annual interest
Finance Charge for 14-day $100 loan: $12
apr for 14-day $100 loan: 309%

Debt Limits:
Maximum Number of Outstanding Loans at One Time: Not Specified ($500 aggregate loans outstanding to all licensees)
Rollovers Permitted: None (if renewal charge is less than maximum interest rate permitted; otherwise convert to declining balance installment note)
Cooling-off Period:
Repayment Plan:

Collection Limits:
Collection Fees: Not Specified
Criminal Action: Not Specified


Your company should actually not issue loans to Texas residents at all as you are not licensed in Texas

I have contacted the Texas Office of Financial Institutions and the Texas State Attorney General????????s Office regarding your internet payday loans and was informed they are indeed illegal in texas and was advised to pay what is due according to principle amount only of the loan.

The legal amount that could have been charged to my loan is the principal amount of $XX even if your internet pay day loan was legal in Texas. I only owe $XXX to have this paid in full as your company has exceeded the maximum loan amount and has exceeded the maximum finance rate and fees. I am willing to pay the amount of $XXX to pay the principle amount of the loan only, as advised by my Department of Financial Institutions and my state Attorney General's office.

I demand a physical address to mail payments to, as you are no longer authorized to debit my bank account. You must provide me with a physical address to mail my payments. I will not Money Gram or Western Union any payment. If no physical address is provided for me to mail payment to, no payment will be made.

I demand that any contact be made through US Postal mail or email only. I will need everything in writing to keep accurate records of all communication as per instruction from my state Attorney General's Office.


I prohibit you or your affiliates to contact me via telephone at my place of employment or my home telephone number. I also prohibit you from calling my references listed on my loan. Once I inform you of this, you must stop the telephone contact immediately or you will be once again breaking the laws of the state of Texas.

You are also hereby notified that I am revoking any voluntary wage assignment I may or may not have signed. I no longer authorize you, your company, or your affiliates to attach any part of my wages or contact my employer for your collection purposes.

I am revoking your right to debit my checking account any longer. You, your company, or your affiliates are not authorized to debit my checking account at all. Please be aware that I have informed my financial institution of this situation and they will also be receiving a copy of this correspondence. Any further attempts at debiting my account will be rejected by my financial institution.

I must also inform you that I have filed complaints with the Better Business Bureau, the Federal Trade Commission, and my state Attorney General's Office.

I expect a response from your company no later than DATE, regarding this matter. This response may only come via US Postal mail or email. No telephone contact is permitted.

Sub: #5 posted on Thu, 07/31/2008 - 02:54

asi55 asi55

(Posts: 10 | Credits: 2.25)

What about Zip19 and NLS Cash Advance?
I have a $600 loan with Zip19 and a $275 with NLS Cash Advance that I didn't even know I signed up for. I reviewed my bank statement because they were deducting to see if I ever received a loan from them and lo and behold there it was. I can't even find the email they supposedly sent in my junk mail or inbox.

Sub: #6 posted on Thu, 07/31/2008 - 03:17

Unregistered


I have these online COS loans and they are legal. My question is should I send them a revoke as well or just phone communication is enough. If I need to send a revoke, does anyone have a one for this purpose since the ones that are on forums are for the illegal ones.

Sub: #7 posted on Thu, 07/31/2008 - 07:45

asi55 asi55

(Posts: 10 | Credits: 2.25)

Alll you would need to do is revoke authorization to debit your account. Just send them:

"I hereby revoke any and all authorization I gave Company X to debit in any way any account I may be a signer on."

Sub: #8 posted on Thu, 07/31/2008 - 19:41

goudah2424 goudah2424

(Posts: 7936 | Credits: 1224.91)

anybody now the real addresses for discoutadvences and mycahnow????

Sub: #9 posted on Fri, 08/01/2008 - 02:54

asi55 asi55

(Posts: 10 | Credits: 2.25)

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