storefront pdls - judgements?

van, I hate Texas pdl law! Doesn't tell you squat! Not being from Texas, I'm certainly no expert. So, here's my "opinion". And, hopefully, someone smart will come along after me! I don't believe they would "automatically" do that. I would believe that they might try some sort of action once they realized they couldn't get payment from you. I just don't see them running out the day you don't pay and getting a judgement against you. Since all store fronts are different, and your law does say 7 - 31 days, some may hold it up to 30 days before even turning it in to the bank. However, I've read other posts where they've turned it in a lot sooner. Each store front and each state is different (as you know). Best bet? Call someone & ask them the law (since they don't specifiy criminal action) and ask exactly what the extent of any criminal action could be if you were to default on a store front loan. Like, what's the MOST they can do. At least that way, it'll put your mind at ease if they say "Oh, you'll be turned over to collections." Or "Oh, you'll have to go to mediation." Just as long as they DON'T say "Oh, you'll go to jail." KIDDING! I don't think they'd say that! But, call whoever at your state agency and just ask them. At least it'll make you feel better knowing you're not going to be hauled off! Maybe someone from Texas will come along and actually already know the answer to this question! :D

For a storefront to get a judgement against you they would have to sue you first. You would be served with a summons, and given options to respond. If you don't respond, a default judgement will be entered against you, at which time the storefront can take steps to collect, ie garnishment or seizure of bank accounts. Normally a creditor will wait a few months to sue somebody.

I would say that if you owe a storefront money, you should keep up communication with them. If you keep communicating with them, they will feel more comfortable about you because it doesn't look like you are running from the debt.

Thanks, goudah! You know, how about sending a letter to your store fronts explaing your situation (if you don't feel comfortable calling them) and tell them that your check will probably be returned NSF. Ask them if payment arrangements can be set up. I don't know if this is an excellent idea or not. But at least it is communication and also you'll have documentation that you made an attempt. Anyone? Stupid? Not stupid? Just trying to throw ideas out here!

That would be a great idea. Anything to keep up communication - If the storefront feels that you are making an effort and are willing to pay but you are having a hard time, they will be more willing to work with you and less likely to take collections further.

Thanks, goudah! I just figure some kind of communication is better than no communication! And, it is intimidating to walk in there and see them face to face (some are nasty) or to talk to them on the phone (nasty again).

thanks- I will be in contact with them. 1 or 2 I don't think are abinding the correct laws in Texas on the rollers/exts.

thx again!

FYI - Most storefronts is Texas are not pdl's. They are operating as CSO's. That means that they do not have to follow the laws for pdl's.

[quote]Payday loan operators in Texas were the first to begin employing the Credit Services Organization Model so our discussion here will make several references to the Texas methodology. However, you should be aware, as discussed earlier, the CSO Model is being used or certainly considered even in states having favorable safe-harbor payday loan legislation.

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.

The applicability of the CSO Credit Services Organization to use in other states is being explored now. Thirty-one states plus Canada have provisions for the CSO Credit Services Organization entity. Since it is typical of the CSO not to be regulated, and the fact that the CSO fees are not considered interest as per the 5th Circuit Court of Appeals, there is little doubt we will see this approach utilized on a grand scale in the future![/quote]

omg goudah2424 I'm screwed!!!!!!!!!!!!

No, that doesn't mean you are screwed, just that you have to approach things differently.

And first you need to find out if the storefronts you are dealing with are CSO's or not . . . . That is the first step.

dang - your fast!

ok, can you break it down for me elementary style..lol
what are steps I need to take?

thx!

Okay. The first step is to find out exactly what you are dealing with, ie - CSO's or pdl's.

Can you post the company names you are dealing with? Then we can help you find out.

That is scary info goudah. I wonder who thought that whole idea up.

ladybug

van, please list out the store fronts for goudah. We can see if they are indeed operating as a CSO. I would post for you, but I've already forgotten the names! (Duh). Also, would it say anything on the loan documents regarding if they were a CSO???

It would say on the loan documents that they are acting as a Credit Service Organization.

van, pull out all your documents. Look for anything that says that on there. Look at the small print, the bull crap on the back, everywhere.

FYI both store fronts I have dealt with never let me read any form of contract...my bad of course...they just throw these papers in front of you...very brief description of what you are signing...one storefront gave me no copies at all..nothing...noda..and I never asked as I was just excited to get the money to help pay some bills. one of the store fronts I have found out is a CSO..or they are listed as one...the other I cannot find....FYI the names of the store fronts I'm dealing with are:
swift cash
A-Z cash
Swift Cash is a CSO in the state of Texas...out of Lufkin...I cannot find anything on the other.
I also had a pdl with Check N Go and I defaulted on that two years ago..all they did was put me in the credit berrow *spelling* never attempted anything else. I'm not saying it is ok to ignore the situation cause its not, but if these ppl. wont talk to you or wont talk to you in a nicer tone then forget it!! I've had nothing but nasty things thrown at me, and told I was going to go to jail for hot checks or fraud. This just makes matters worse, The best tactic I C is write a letter, but make sure you register return receipt requested it so they can't say they didnt get it!!