I have closed out my checking account with a 0 balance so the cash advance companies can't get their money.
Danny asked:
I have 14 cash advances out n can't afford to pay them off, I am just getting social security. So I closed that checking account out n re opened another one. What will happen? The places can't touch soial security according to a attorney.
They will send you to collections and your credit will be damaged for a very long time.
What you have done is given them post dated checks on a closed account which is illegal. They will be suing you and harassing you for payment. I don't know how much overall you owe, but bankruptcy might be an option.
First of all, in order to receive 14 cash advances on the same checking account, you had to have lied on the applications because they ask if you have any other cash advances on that account. This can be considered fraud so you may want to speak with your attorney in case they decide to file criminal charges.
they are going to sue you and get judgments against you for the loan amount, lender fee, and court cost. The best thing to do is to call them and tell them you were in a financial strain
and work out paying them down the best way you can if not your looking at more money out of pocket once they take you to court.
You should be asking your attorney about your social security benefits.
Will you still be eligible for social security while you are incarcerated?? I mean, since you have already perpetrated FRAUD with the payday loan companies.
Good Luck.
There are differences of opinion concerning your question. Here, locally – as a consumer finance lender (not a payday lender) – we have many customers that ask that question. Our county attorney used to state "they (payday lenders) took a check they knew was not good at the time they took it". Yes it was postdated – but not good all the same.
Also, placing a stop payment on those checks might be a good thing to consider.
Talk to your county attorney and the Department of Financial Institutions in your state. Get their opinions and avenues to go.
Should the lenders get a judgement – they certainly could attach your new checking account.
Call them, tell them you will make payments on the amount owed to them on a regular basis to get the debts paid in full.
Consider getting a bank loan to pay them all in full – with one payment.
Fraud? Perhaps. BUT here the payday lenders actually tell the customer "if you answer this question yes, I can't do this loan; so you need to check no if you want it". That is leading a borrower if I've ever heard it!
Good luck. And call your county attorney.