I have quite a few internet payday loans. They take the money right out of the bank?
This was stupid but we were desperate. What happens if I close my bank account. Can they come after me for fraud or can I deal with them some other way than direct withdrawl from my bank?
Some places offer in-house collections and only go legal as a last resort. Check and see if you can come to a payment arrangement first.
If you gave them a security interest and then close the account knowing the note is out there, it’s fraud. Contact them about any payment options; but I bet they keep doing what they do,
they willl just keep trying to debit your accounts until they are told that the account is closed
No fraud if you pay as agreed - always keep lines of communication open
They can sue you for what you owe.
You could talk to a debt-management company to advocate for you. I would try to keep paying until you figure out a debt solution. If you close the bank account, they will still try to collect. If you refuse to pay they’ll refer it to a collections agency. That will really trash your credit-rating. Eventually, they will take it to court and garnish your wages if they win. It’s an ugly mess but there is a way out. Just make sure that whatever debt solution you find is based on reasonable interest/payments instead of the over-priced pay-day loan rates.
They will try to collect from you using other means. I would definitely close the account & then get about working payoff plans with each of them before they get around to suing or filing charges against you. In the meantime, please get a copy of Dave Ramsey’s “Total Money Makeover” book. It will teach you how not to get into that sort of desperation again. I have been following it for 4 yrs, & revolutionized my finances.
These lenders think they can scare you with into paying it back because you wrote a check, but that is just not true. The law forbids payday loan lenders from initiating or threatening a criminal prosecution against you or from collecting the treble damages that might otherwise be payable pursuant to the Civil Code for a dishonored check. They do reserve the right to collect delinquent loans using all legal remedies available including legal debt collection and civil court action. This is the most legal action they can take against you, it will take them months to take you to civil court, and another month or two to garnish your wages, if ever.