In this Preliminary Credit Services Disclosure Statement (“Disclosure Statement”), the words “Customer,” “Buyer,” “you” and “your” mean the person who has signed this Disclosure Statement. The words “Seller,” “we,” “us,” “our,” and “CAB” mean
C1 Finance, LLC dba Cash 1. We are a registered and bonded Texas Credit Services Organization and a licensed Credit Access Business operating pursuant to Chapter 393 of the Texas Finance Code (“Chapter 393”). Our principal place of business is
725 East Covey Lane, Suite 170, PHOENIX, AZ 85024. Our agent in Texas authorized to receive service of process is: Corporation Service Company dba CSC-Lawyers Incorporating Service Company, 211 E. 7th Street, Suite 620, Austin, TX 78701. “Lender” means
. “Agreement” means the Credit Access Services Agreement between you and us that will govern any credit services you receive from us. “Note” means the Promissory Note between you and Lender that will govern any loan you receive from Lender. This is a Preliminary Credit Services Disclosure Statement. A Supplemental Credit Services Disclosure Statement will be provided to you after we know the amount of credit that you apply for.
DESCRIPTION OF OUR SERVICES: We are not a lender or a credit repair organization. We will not improve your credit record, credit history or credit rating, nor will we provide any advice or assistance to you with regard to any such activity. If we are successful, for the fee set forth below, we will (1) work to obtain a loan (the “Loan”) from Lender as set forth below beginning after you receive statutory disclosures; (2) issue a letter of credit (“LOC”) to secure the Loan; (3) assist in preparing and completing documents necessary to obtain the Loan; and (4) collect and service the Loan and remit payments to Lender. We do not promise that you will actually receive a Loan. All credit decisions will be made by Lender. Our services to you will end no later than 180 days after the date of the Agreement. YOU WILL NOT OWE US ANY FEE IF YOUR LOAN APPLICATION IS DENIED OR YOU CHOOSE NOT TO ACCEPT ANY LOAN THAT IS APPROVED FOR YOU.
YOU UNDERSTAND THAT THE LOAN AND SERVICES WE PROVIDE MAY NOT BE AT THE LOWEST RATES OR ON THE BEST TERMS AVAILABLE. AN ADVANCE OF MONEY OBTAINED THROUGH A PAYDAY LOAN IS NOT INTENDED TO MEET LONG-TERM FINANCIAL NEEDS. A PAYDAY LOAN SHOULD ONLY BE USED TO MEET IMMEDIATE SHORT-TERM CASH NEEDS. REFINANCING THE LOAN RATHER THAN PAYING THE DEBT IN FULL WHEN DUE WILL REQUIRE THE PAYMENT OF ADDITIONAL CHARGES. YOU SHOULD CONSIDER OTHER OPTIONS AVAILABLE TO YOU.
COST OF OUR SERVICES: If your loan application is approved by the third-party lender to whom we submit it, we will charge you CAB fee payments on your pay dates during the term of your loan. If you are paid biweekly and obtain a loan with a term of six (6) months, then each of your twelve (12) CAB fee payments would be equal to $28 per $100 loaned to you by the third-party lender. Therefore, a loan with proceeds to you of $100 payable in six (6) months with interest of 10% per annum charged by the third-party lender, and a CAB fee charged by us of $336, results in a total amount to be repaid of $440.60, and the finance charge disclosed by the third-party lender would be 729.82% per annum. You may prepay any loan you obtain in whole or in part at any time without penalty. Prepayments will reduce your interest charges and CAB fee. Although the CAB fee that we charge you is not interest, the Federal Truth in Lending Act requires that it be included in the finance charge calculation for your loan. YOU WILL NOT OWE US A FEE IF YOUR LOAN APPLICATION IS DENIED BY LENDER. Please be aware that our CAB services and the Loan, if any, you receive may not be at the lowest rate or best terms available, and that you may look elsewhere for services and a loan. Payment must be sent by approved, official, certified or cashier’s check or money order to our address specified above. Alternatively, you may pay pursuant to the separate Optional Electronic Payment Authorization which will be presented to you. All payments will be applied in the following order: (i) uncollected CAB fees and expenses, (ii) other applicable fees, if any, (iii) interest, then (iv) principal. You have the right to make payments in any amount in advance at any time. Any payment on the Loan you make in care of us will be binding on Lender.
YOU MAY PREPAY THE LOAN IN WHOLE OR IN PART AT ANY TIME WITHOUT PENALTY. PREPAYMENT IN FULL WILL REDUCE YOUR INTEREST CHARGES AND CAB FEES. YOU CAN MAKE PREPAYMENTS AS SET FORTH IN THE PRECEDING PARAGRAPH. ALSO, YOU CAN OBTAIN FROM US AND SIGN A SEPARATE OPTIONAL ELECTRONIC PAYMENT AUTHORIZATION PROVIDING FOR PERIODIC PREPAYMENTS ON THE LOAN.
Our CAB fee payments are posted on the first day of each CAB payment period. If you prepay your Loan in full or in part before the Due Date, you will not receive a refund or credit for CAB fees previously paid or due to us. However, no liability for CAB fees will accrue after prepayment of the Loan in full. In addition to the CAB fees, you agree to pay us a $30.00 returned payment fee if any debit card payment, check or Automated Clearinghouse (“ACH”) payment to us fails because your account contains insufficient funds or has been closed. We will not charge more than one returned payment fee on any payment no matter how many times we present your check for payment or attempt to process your ACH or debit card payment, and will not charge more than one returned payment fee on any payment if it is rejected because your account is closed. If you make a combined payment of amounts due under the Note and this Agreement and the payment is returned, you will owe a single returned payment fee to us (and no returned payment fee to Lender). Any past due amounts you owe to us would bear interest at the rate of 10% per annum from the date due until paid. In addition, Lender charges: Interest at ten percent (10.00%) per annum; and a late charge equal to the greater of 5% of the payment amount or $7.50 if the payment is in default for a period of ten (10) or more days.
LOC AND OBLIGATION TO REIMBURSE:If you obtain a Loan through us from Lender, we will issue the LOC in favor of Lender and keep the LOC in force provided that you are current in payment of your CAB fees. If you default on a CAB fee payment, we have the right but not the obligation to cancel the LOC as to you, though it remains irrevocable as to Lender in accordance with its terms. The LOC will remain in force during any period where you are in an active default repayment plan with Lender after the Due Date per the terms of the Note. You have no right to defer payment of your CAB fees. The LOC will be in a form satisfactory to both Lender and us, in an amount sufficient to cover the principal, interest and fees payable or potentially payable on the Loan. You agree to repay us, with simple interest at a rate of 10% per annum, any amounts paid by us on the LOC, immediately upon our performance under the LOC. The LOC will expire: (1) 210 days from the date of the Loan; (2) when the Loan is paid in full or refinanced; (3) when we make payment under the LOC; or (4) when we cancel the LOC due to non-payment of your CAB fees, whichever is earliest. If you timely exercise your right to cancel this Agreement, the LOC shall be automatically revoked and shall have no further effect.
YOUR RIGHT TO ASSERT A CLAIM AGAINST OUR SURETY BOND:In accordance with Chapter 393, we have filed a surety bond in the amount of $10,000.00 in favor of persons damaged by a violation of Chapter 393, and in favor of the State of Texas for the benefit of such persons. Subject to other applicable law, a person making a claim against the surety bond for a violation of Chapter 393 may file suit against us and the surety. The surety’s liability is limited to actual damages, reasonable attorneys’ fees, and court costs awarded under Section 393.503, but the surety’s aggregate liability for your claim and all other claims may not exceed the amount of the bond. By law, we are required to maintain the surety bond until the second anniversary of the date on which we cease operations. The name and address of our surety is: Hartford Casualty Insurance Company, One Hartford Plaza, Hartford, CT 06155
INFORMATION ABOUT CONSUMER REPORTING AGENCIES AND YOUR RIGHTS:If you obtain an extension of credit from a third-party lender that is processed and serviced by us, we may report information about your account to consumer reporting agencies. Late payments, missed payments or other defaults on your account may be reflected in your credit report.
A Consumer Reporting Agency (“CRA”) is an entity that gathers information about consumers and sells the information to creditors, employers, and other entities. To find a CRA, look in your local telephone listings under “credit” or “credit rating and reporting.” Because more than one CRA may have a file on you, call each one until you locate each agency that maintains a file about you. The three major national CRAs are:
|P.O. Box 740241
Atlanta, GA 30374-0241
||P.O. Box 2104
Allen, TX 75013
||P.O. Box 1000
Chester, PA 19022
In addition, anyone who takes action against you in response to a report supplied by a CRA, such as denying your application for credit, insurance, or employment, must give you the name, address, and telephone number of the CRA that provided the report.
ACCESS TO, AND CHARGES FOR, YOUR REPORT: If you ask, the CRA must tell you everything in your report, including medical information, and in most cases, the sources of the information. The CRA also must give you a list of everyone who has requested your report within the past year, or two years for employment related requests. There is no charge to review your report if a company takes adverse action against you, such as denying your application for credit, insurance, or employment, and you request your report within sixty (60) days of receiving the notice of the action OR within thirty (30) days of the CRA’s receipt of such notice. The notice will give you the name, address, and phone number of the CRA. In addition, you are entitled to one free report a year from each of the three major CRAs if (1) you are unemployed and plan to look for a job within sixty (60) days; (2) you are on welfare; or (3) your report is inaccurate because of fraud. Every consumer is entitled to one free credit report a year from each of the three major national CRAs. To receive your free credit reports or for more information, visit www.annualcreditreport.com. Alternatively, you may order your reports by telephone at (877) 322-8228 or by mail addressed to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. Lastly, you are entitled to your credit report at a minimal charge at any other time.
INCOMPLETE OR INACCURATE INFORMATION:Both the CRA and the information provider have responsibilities for correcting inaccurate or incomplete information in your report. To protect your rights under this law, contact both the CRA and the information provider. First, tell the CRA in writing what information you believe is inaccurate. CRAs must reinvestigate the items in question, usually within thirty (30) days, unless they consider your dispute frivolous. They also must forward all relevant data you provide about the dispute to the information provider. After the information provider receives notice of a dispute from the CRA, it must investigate, review all relevant information provided by the CRA, and report the results to the CRA. If the information provider finds the disputed information to be inaccurate, it must notify all nationwide CRAs so that they can correct this information in your file. When the reinvestigation is complete, the CRA must give you the written results and a free copy of your report if the dispute results in a change. If an item is changed or removed, the CRA cannot put the disputed information back in your file unless the information provider verifies its accuracy and completeness, and the CRA gives you a written notice that includes the name, address, and phone number of the provider. Second, tell the creditor or other information provider in writing that you dispute an item. Many providers specify an address for disputes. If the provider then reports the item to any CRA, it must include a notice of your dispute. In addition, if the information is inaccurate, the information provider may not use it again. This process may not resolve your dispute. If that is the case, ask the CRA to include your statement of the dispute in your file and in future reports. If you request, the CRA also will provide your statement to anyone who received a copy of the old report in the recent past. There usually is a fee for this service. If you tell the information provider that you dispute an item, a notice of your dispute must be included anytime the information provider reports the item to a CRA. However, accurate information contained in the report cannot be permanently removed. For more information, visit www.ftc.gov
ACCESS TO YOUR REPORT:Only people with a legitimate business need, as recognized by the Fair Credit Reporting Act, may obtain your report. For example, a company is allowed to get your report if you apply for credit, insurance, employment, or to rent housing. A CRA may not supply information about you to your employer, or to a prospective employer, without your consent.
ACCESS TO MEDICAL INFORMATION:Creditors, employers, or insurers must have your authorization to get a report that contains medical information about you.
WHEN REPORTS BECOME OBSOLETE:Most information contained in your report expires in seven years. Exceptions to this rule include information about criminal convictions (no time limit); bankruptcy information (ten years); information reported in response to an application for a job with a salary of more than $75,000.00 (no time limit); information reported because of an application for more than $150,000.00 worth of credit or life insurance (no time limit); information about a lawsuit or an unpaid judgment against you (longer of seven years or until the statute of limitations expires). A CRA may not issue a report containing obsolete information.
NOTICE:OTHER LESS EXPENSIVE CREDIT SERVICES MAY BE AVAILABLE TO YOU, AND NONPROFIT CREDIT COUNSELING SERVICES ARE AVAILABLE TO YOU. CHECK YOUR TELEPHONE DIRECTORY UNDER “CREDIT & DEBT COUNSELING” OR SEARCH THE INTERNET UNDER “CREDIT & DEBT COUNSELING” FOR MORE INFORMATION.
BY CLICKING THE “I AGREE” BUTTON BELOW, YOU: (1) WARRANT THAT YOU ARE NOT A DEBTOR UNDER ANY PROCEEDING IN BANKRUPTCY AND HAVE NO INTENTION TO FILE A PETITION FOR RELIEF UNDER THE UNITED STATES BANKRUPTCY CODE; (2) ACKNOWLEDGE THAT YOU HAVE RECEIVED, READ, UNDERSTOOD AND ACCEPTED ALL OF THE TERMS ON ALL PAGES OF THIS DISCLOSURE STATEMENT; (3) AGREE THAT THIS DISCLOSURE STATEMENT INVOLVES INTERSTATE COMMERCE; (4) ACKNOWLEDGE THAT YOU RECEIVED A COPY OF OUR PRIVACY NOTICE; AND (5) ACKNOWLEDGE THAT YOU RECEIVED A COPY OF THIS DISCLOSURE STATEMENT BEFORE EXECUTING A CONTRACT OR PAYING ANY FEE OR PROVIDING OTHER VALUABLE CONSIDERATION.