Expert: Apex Credit Services, LLC - 1/2/2008

Question
My wife and I have 6 payday loans to "CashLand" in Ohio. I know that payday loans can be a "necessary evil" sometimes, and have ALWAYS tried our best to pay them back on time in the past.  However, I have inadvertently defaulted on 2 of the loans, and have endured the harassment by the collections agent trying to get me to settle the account "immediately" by getting me to verbally promise when I would pay them.  CashLand requires that 2 checks be written to them for one debt (i.e. $350 borrowed = 2 checks for $201.25).  They are dated for the date the checks are written, and due 30 days later. We fell on hard times and and since we are both on Social Security had no other recourse than to go to our bank issue a "Stop Payment" order on 4 checks totaling $805.00 that would have kept us from paying our mortgage and other living expenses if they were deposited and cleared.  I am "somewhat" familiar on Fair Debt Collection rules, but what can/will happen to us because of this?  I have been trying to secure a personal (bank) loan to rectify this, but to no avail.  Can we be arrested and jailed for writing bad checks?

Answer
Alan:

    We are not licensed to practice law in the State of Ohio however, I would be reluctant to think that placing a stop payment on checks would constitute writing a bad ones.  It was never presented for payment and returned so, a vital element of that crime would probably be lacking.

    While the above are my thoughts, you may refer to the Ohio Revised Code to search for the elements of the aforesaid crime in order to be sure.

                Apex Credit Services, LLC