Collections Law/payday loan

Advertisement

Expert: John Hall - 6/29/2006


Question
i got a payday loan a couple of months ago, was paying the renewal fee on time, i'm on disability so get paid once a month. i changed bank accounts i e-mailed them, and called in may the new account went into effect in jun.  i mistakenly gave them my savings account number tryed calling them back in May never got a response so the due date came and went now on the 23th of this month i rec a phone call stating they will have me charged with fraud i told them i have e-mail where i wrote and called and they said i had to pay by the 28th i don't get paid until the 1st of the month will i go to jail the were taking the money out on the first of the month

Answer
Don't pay them a dime, and get your money out of your bank account so they can't take it.  Change accounts if you have to, but don't give them further access.  

The claim of going to jail is not only a bluff, it is a lie and they know it.  Writing a bad check is a crime if you knew there was not enough money in the bank when you wrote it - and that DOESN'T apply to post dated checks.    They are just trying to scare you.  There is no criminal act here.

They could always sue you for the amount, or try to hassle you to pay them, but their options are pretty much limited.  You have some options for dealing with this debt once and for all (and I don't mean settling with them) but I can't say for sure without knowing more facts that you don't state in your question.  call me on my cell phone if you want to talk about this further.  I will not charge you just to talk on the phone.  661  492-2673

Collections Law

All Answers

Answers by Expert:

Ask Experts

Volunteer

John Hall

Expertise

Law school graduate, Juris Doctorate (J.D.) Degree; Over 25 years of experience throughout the United States in bankruptcy law matters (Chapters 7, 11, and 13 of the United States Bankruptcy Code) primarily representing individual debtors with consumer debt or small businesses; Experience has included all aspects of debtor/creditor relations.

Experience

FREE BANKRUPTCY HELP. If you are being sued, if your home is being foreclosed, or if you are being harassed by bill collectors, filing for bankruptcy may be a quick and inexpensive solution.. The mere filing of a bankruptcy will operate as a federal court order (it is called an automatic stay) to stop all bill collection efforts, including lawsuits that are pending or ongoing. Bankruptcy is a legitimate way to meet your problems with debt head-on. The bankruptcy law is designed to give you a second chance to make a new start without the psychological and financial burden of pressing debts that you are unable to pay. Depending on what state you live in and what your assets are, it is very unlikely that you are going to have to lose anything if you file for bankruptcy, and this is something that you can do immediately without having to pay the $500 to $1,500 attorney fees that most attorneys charge. Also, you might be surprised that you can file for bankruptcy and that it will not have the devastating effect on your credit that most bill collectors describe. Life is too short to have all this anxiety over losing your car through repossession, getting evicted from your home, or losing your home through foreclosure. Bankruptcy law was designed to give you a second chance. I will not charge you just to talk on the phone. Call me at 432 853-5711, or send me an email at j_h14@hotmail.com with your telephone number, and I will call you back.

©2012 About.com, a part of The New York Times Company. All rights reserved.