JustaTexan

Advice for Payday loan harassment

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Hello CIC! Been awhile since I've posted but I need to ask a quick question for a girlfriend of mine. She just had a baby and has gone back to work at her place of employment, a bank, and is having some financial troubles. While she was out of maternity leave, she took out 2 payday loans that she has had to let go.

My friend wants to pay her debts off but she just can't do it right now. I composed a very nice but tough hardship situation/do not call/want to pay but can't letter for her to mail off to these people, (ACE and CheckNGo), but before she even got a chance to mail them off today these people from ACE are calling her at work and harassing her and her fellow employees. They asked to talk to her boss and were asking for the names of all her superviors, etc.

Now I know that the FDCPA prohibits this in Sect. 804 and 805, but since we're dealing with the OC's here they are not bound to the FDCPA, however they are still bound to the Texas Finance Code, which has all kinds of restrictions on what these people can and can't do but I can't find anything in it about contacting 3rd parties when the location of the debtor is already known.

Here is the link to Chapter 392 of the TFC:

http://caselaw.lp.findlaw.com/txcodes/fi039200.html

I would be very very very grateful to those who would be willing to look through this and see if you can maybe see something that I am not. Something that would give her more leverage with these people. She seems to be extremely stressed out and even in tears at this point. I want her to focus on her newborn baby boy and not these people calling her constantly all day. She works at a bank so she says this makes her look bad because she works with money and it makes her look irresponsible.

Thank you again!

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Texas

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.

Hope this helps

RebelLady

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Deanna,

Long time no see...I do so miss our "discussions". :)

I don't think she is going to scare scumbag payday lenders with "the law"...these people are the true bottom of the bottom-feeding lending industry; if they had any shred of decency they would volunteer to be locked away under the jail until Jesus returns.

That said; while the law may help your friend long-term; in the here and now I would suggest that her best course of action is to be up-front with her employer/co-workers and let them know exactly what's going on...she needs to enlist their help in deflecting these assholes...were I this woman's boss I'd take the call and then tell the SOBs that I was going to sue them for a few hundred thousand $$$ in damages base on their interruption of my business (then I'd give them a blast of canned air-horn just before I slammed the phone down on them).

Edited by Robert_Nashville

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.......

RebelLady

Thank you very much RebelLady, I hope this can help her out some.

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Deanna,

Long time no see...I do so miss our "discussions". :)

I don't think she is going to scare scumbag payday lenders with "the law"...these people are the true bottom of the bottom-feeding lending industry; if they had any shred of decency they would volunteer to be locked away under the jail until Jesus returns.

That said; while the law may help your friend long-term; in the here and now I would suggest that her best course of action is to be up-front with her employer/co-workers and let them know exactly what's going on...she needs to enlist their help in deflecting these assholes...were I this woman's boss I'd take the call and then tell the SOBs that I was going to sue them for a few hundred thousand $$$ in damages base on their interruption of my business (then I'd give them a blast of canned air-horn just before I slammed the phone down on them).

I too miss our "discussions" Robert! ;)

I did tell my friend to let her boss know what's going on and let these jerks know that her boss would be willing to sign a written statement saying that the payday loan company did infact call and ask to speak to my friend's boss, then informed them of the debt, and harassed them to find our more supervisors names and numbers.

I think she's just embarrassed. She told me one time that because she works at a bank that they are expected to have their financial stuff together. Like they even pulled her credit report before she was hired.

She's called and tried to work out some kind of payment agreement with these people but she says they are just not willing to move an inch.

Thanks again!

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