Expert: Michael Brotherton - 12/7/2007

Question
I currently have 7 payday loans that I have been just paying on for the last 5 months.  I have paid them off a number of times and turned around and taken them out again, I finally told my husband this past week about them because I have my own checking account and he couln't figure out why I was always asking him for money.  I work part time and keep my check.  Any way I tried to close my account and one of the loans had already become due and so It went through. As of today I owed 679.00 in just fees, I have called all the lenders and told them my husband found out and will pay them as long as they send me a statement showing what my balance is, he has agreed to send them each a check.  I have been told no by everyone and already am being threatend by them.  What can really happen to me

Answer
First, you cannot be criminally prosecuted for the checks being returned unless they can prove you intentionally defrauded them. This is very difficult to do. Besides most prosecutors wont touch them because it is such a big problem. They do not want to become the collection dept. for these companies.

Pay them as you are able and don't let them intimidate you. They cannot get what you do not have. You only work part time so they probably couldn't even garnishee your check. They could potentially file a civil suit and get a judgment but all that says is you owe the money, but they still have to collect it. Keep balances low in your account even if you get money.

Write them all letters advising them to cease and desist phone calls. Send it by certified mail, return receipt requested. Let them know you will be paying them as you are able. If they are a member of the Community Financial Services Association and they are being abusive file a complaint with CFSA. You may also file complaints with the Dept of Commerce if they get out of line with their collection efforts and start abusing you. This is a common tactic by pay day loan companies.

Don't be afraid of them. Just try to pay them as soon as possible and don't go back.

Good luck.