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Cashnet - Internet payday loan


bbelchincr
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I have a collection agency calling me about an outstanding debt I supposedly have with an internet payday loan company called Cashnet (although now I believe they may go under the name of Global). Can anyone tell me if this Internet payday loan provider is legal in the state of Iowa. I had no idea that I had any outstanding debt with any payday loan provider. I took several out in 2005/2006, but honestly thought that they had all been paid back.

Thanks for your help.

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You should be able to log onto your states Atty Generals website and see if this business is licensed in your state.

You should be trying to verify the account too though. If you were in a position to take out multiple payday loans, you may have been in a position to not remember who you paid and who you may not have paid.

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I have tried to verify whether I still owe any money to this internet PDL provider. in 2006 I was working with a financial counseling agency to clear up all of my past due loans. I am still working with them as they continue to help me with my finances. We kept track of all of the payday loans and they were all paid off more than 2 years ago. However, one company never provided proof or verification that the loan had been paid off. Letters, phone calls and faxes were sent with no response. When the unpaid amount showed up on my credit report, I disputed with no luck. I am sure that this is the same loan that has now been sold at least twice. It has ballooned from $95 to $497. I have sent a DV letter and, at the same time, we are searching our past records for a copy of the cancelled check that paid this sucker off.

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Regardless of who the alleged creditor is, what kind of debt it is, etc...you need to start the Dispute/Validation process.

You need to sit down and craft a letter that is applicable to your particular situation and which asks for the information you need to know...given your posts, I'd say that at a minimum you need to know who the original creditor was (name and address) and the current creditor...you need some sort of evidence that you actually borrowed from this company and you need a full accounting (all debits, credits, adjustments with notations of what they are for) that tallies to the amount they now claim you owe. Finally, ask for a letter from the creditor that names this CA as their agent in this matter. Send the request CMRRR.

You probably aren't going to get the information you request/need because they probably don't have it and/or are just looking for an easy target/easy money but I wouldn't pay a dime to this CA/creditor without the information.

While you are waiting for their reply, find the "proof" that this financial counseling company actually paid this payday lender...if you paid it then you paid it whether you got an acknowledgment of that from the payday lender or not.

In case they do push this further, bone up on your state's laws regarding payday lending.

I suspect that a lot of these "internet" based payday lenders have come about as a way to try and avoid state restrictions but my suspicion is that doing so causes them to loose the ability to successfully go through the courts to collect when people don't pay.

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Robert - Thanks so much for your quick and helpful response. I have a question about my validation letter that I posted on another forum but have not received an answer to. Some of the posters on Credit forums and some of the sample Validation letters I have reviewed online make a point to say you should NEVER put your actual signature at the close of the letter, that you should only type it or print it. Is this valid advice? If so, what is the reason? I feel stupid for asking, but I don't want to send out my letter until someone can answer this for me.

Thanks so much for the help!

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People say that because of the risk that a CA will "lift" your signature off your validation request and it will then suddenly "appear" on documents you never actually signed.

One way to avoid that is to not "sign" letters sent to CAs.

Another way would be to simply initial your letter or yet another way is to be consistent with the way you always sign every other document you've ever signed but sign your DV letter differently...for example, I always sign documents with my full name including middle name but on a DV letter I could simply do my first initial and last name, etc.

Personally, I think that kind of fear is resident in those who are truly paranoid and have nothing else real to be afraid off. That aside, any CA who would be willing to do what they fear would be willing to blatantly forge your signature outright.

Whether you sign your letters to CAs or not is, I say, totally up to you...I don't think you would be "wrong" either way.

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