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Texas payday loan help

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Posts: 34
Credits: 1575.05
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Ok, I am in texas and have 6 pdl I am about to close my bank account and default on them all but I wanted to make sure I do everything that I'm suppose in order to make this work.

ImpactCash/E-Cash- $300 have paid $270- online

Paychecktoday- $250 have paid $300- online

Cash Advance Network- $250 have paid $275-online

LoanShop- $200 have paid $180- online

GFS- $200 have paid $855- online

BIG- $225 have paid $940- online

Before I close my account am I suppose to contact a processors? I'm really not sure what I need to do. Can someone help?

Thanks!




dawnlango7

Posts: 1147
Credits: 4827.05

Sub: #1 Hi Lilly, I will post your laws for you in a moment, in Texas a
Thu, 10/23/2008 - 07:18

Hi Lilly,
I will post your laws for you in a moment, in Texas a lot of companies are operating as CSO's and would be legal. I will need to find out about the companies for you. Depending on the company, once you close your account you would need to contact the legal companies & work out an arrangement with them...from what I can tell you have overpaid all but 2, so for the one's that are illegal (if there are any), I would report them to the BBB, FTC and Texas attorney general...




dawnlango7

Posts: 1147
Credits: 4827.05

Sub: #2 Here is some info, I will post the laws in a moment: Quote
Thu, 10/23/2008 - 07:22

Here is some info, I will post the laws in a moment:


Quote:
Texas payday loan laws were first enacted in June of 2000. As with other states, Texas payday loan laws state that a lender must obtain a license before they operate. Under Texas state law, a company that engages in the business of payday loans is defined as any person(s) making cash advances in exchange for a consumer????????s personal check, or in exchange fore the consumer????????s authorization to debit the consumer????????s deposit account. The licensing laws for payday loan lenders in Texas are the same as stated under the Texas Finance Code Ann. 342.
Texas payday loan laws have different requirements on fees than other states. Under Texas law a lender is allowed to charge no more than $1 per $5 that????????s borrowed for loans under $30. For loans over $30 but no more than $100, a service fee of one-tenth the amount can be applied. And for cash advances over $100, a fee of no more than $10 can be charged.

Texas payday loan laws also permit handling charges in addition to service or interest fees. Under Texas law, a $3.50 handling charge can be added each month to the total amount as long as the amount of the loan doesn????????t exceed $35. If the cash advance is over $35 but no more than $70, monthly handling charge of $4 can be applied. For loans over that amount, a $4 fee can be added each month for every $100 that????????s borrowed.

Payday loan lenders in Texas must post a notice with a fee schedule along with a written agreement. The agreement must contain the name of the lender, the transaction date, the amount of the check, an itemization of fees, the earliest date the check must be deposited, and a total amount expressed in U.S. dollars and as an annual percentage rate. The agreement form should have the name, address, and phone number of the Consumer Credit Commissioner. Texas payday loan laws also require that the agreement form provide a notice that sates payday loans are intended for short-term cash needs.

Texas payday loan laws prohibit lenders from dividing one loan into two loans for the sole purpose of collecting higher interest fees. The maximum term limit for payday loans in Texas is 31 days. The minimal term limit for payday loans is 7 days.

Under Texas law, a lender cannot pursue criminal charges to collect on a debt. Also, a payday loan lender is limited as to how many times a loan can be renewed. Currently under Texas law, lenders are allowed to renew a payday loan one time each month.




dawnlango7

Posts: 1147
Credits: 4827.05

Sub: #3 Quote:Texas laws: Texas State Information Legal Status: Le
Thu, 10/23/2008 - 07:24

Quote:
Texas laws:

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

Where to Complain, Get Information:
Regulator: Texas Office of Consumer Credit Commissioner
Address: 2601 N. Lamar Blvd. Austin TX 78705
Phone: (512) 936-7600
Fax: (512) 936-7610




dawnlango7

Posts: 1147
Credits: 4827.05

Sub: #4 Here is some info about the CSO's: Quote:What is a CSO Credi
Thu, 10/23/2008 - 07:26

Here is some info about the CSO's:

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.




dawnlango7

Posts: 1147
Credits: 4827.05

Sub: #5 Hi Lilly, Here is what I found for your companies: Impact ca
Thu, 10/23/2008 - 07:49

Hi Lilly,

Here is what I found for your companies:
Impact cash - not licensed/legal
Paycheck today - not licensed legal
Cash Advance Network - not licensed/legal
Loan Shop - not licensed/legal
GFS (global Financial?) - not licensed/legal
BIG - not licensed/legal

If my info is correct then all of your loans are illegal and you are only responsible for the amount you borrowed, you only owe 2 of them:
Impact Cash - owe $30
Loan Shop - owe $20

Once you close your account I would send all of the companies a cease & desist letter revoking your authorization to withdraw from your account and any wage assignments you may have signed, you can also advise that you want them to contact you by email/mail only and not to contact your references. If you search you should be able to find a template of the letter in some of the threads. I would also report them to the BBB, FTC and the Texas attorney general.

Hopefully if any of my info is incorrect, someone will give the correct info...




lilly863
Posts: 34
Credits: 1575.05

Sub: #6 I am looking for the cease letter and wage assignment and can't
Thu, 10/23/2008 - 09:17

I am looking for the cease letter and wage assignment and can't find them. Can you tell me where they are located?

Thank you for your help. I am ready to get all this behind me.




dawnlango7

Posts: 1147
Credits: 4827.05

Sub: #7 Your welcome, I will search and see if I can find it, then I wil
Thu, 10/23/2008 - 09:29

Your welcome, I will search and see if I can find it, then I will post it for you.




dawnlango7

Posts: 1147
Credits: 4827.05

Sub: #8 Here is the template I used, you will need to tailor it for your
Thu, 10/23/2008 - 09:56

Here is the template I used, you will need to tailor it for your needs:

[quote]To Whom It May Concern:

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)

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 as you are not licensed to lend to Texas residents. I 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 $400.00 DOLLARS even if your internet pay day loan was legal in Texas. I have paid $240.00 DOLLARS on this loan by your debits of my bank account. To date, I have a balance remaining of approximately $160.00 DOLLARS.

I demand that any contact with me 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.

Thank you,

You will need to put the amount you have paid and how much you are owed in the section that I highlighted red. Most of the companies owe you a refund so it should be easy. Remember to close your account before you send this letter out. If you need addresses you should be able to search the site for them. Most people sent the letter either by email or certified through the mail...[/quote]




lilly863
Posts: 34
Credits: 1575.05

Sub: #9 I have sent out my letters via email and will send a certified.
Thu, 10/30/2008 - 08:54

I have sent out my letters via email and will send a certified. But I will officially default tomorrow on my loans. I hope this won't be too bad. I have over paid on all but 2 and only owe the $30 and $20 on those. So I pray this will be over soon.




lilly863
Posts: 34
Credits: 1575.05

Sub: #10 Well I received a call for GFS (in regards to my email) and they
Thu, 10/30/2008 - 09:26

Well I received a call for GFS (in regards to my email) and they said they only abide by UK laws and not Texas laws. They stated that they would continue to draft $40 from my account until I told them to pay it off. I told them in my letter it stated not to contact me by phone only by email and mail. She said she would note to block number (not to call per email). I don't think I am going to get anywhere with them. Any advice how to handle them?




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