payday loans

[badd2323]

What is the name of your state? IN
I filed chapter 7 prior to the changes. Included in the filing was a payday loan. On the advice of my attorney I stopped payment on the check they were holding. I was checking my bank account today and it looks like they (the loan company) debited my account, for the amount of the check plus $20. I recieved my paperwork from the court over three weeks ago, so they should have been notified from the court. I also told them about the bk over the phone.

1. Can they do this legally?
2. If not what can I do to fix it, I wil have several hundred in checks bouncing, along with the overdraft charges.

Thank you.

[justalayman]

First..look in the mirror and call yourself a dummy for ever going to one of those places

next..Call your bank and ask them how they processed the check if you put a stop payment on it

next...call your attorney and tell on everybody

[badd2323]

I realize it was a stupid thing to do, but I have 3 small kids and they needed food and the gas co. was going to disconnect me. Its a long story with the d and the ex and how I pay a boat load of money to her, while we share 50/50 legal and physical custody. I am working on that issue as well. I just had a question didn't need to chastized, I knew it was stupid when I did it. Re: the bank it looks like they debited the account, without depositing the check. Thanks

[justalayman]

Originally Posted by badd2323

I realize it was a stupid thing to do, but I have 3 small kids and they needed food and the gas co. was going to disconnect me. Its a long story with the d and the ex and how I pay a boat load of money to her, while we share 50/50 legal and physical custody. I am working on that issue as well. I just had a question didn't need to chastized, I knew it was stupid when I did it. Re: the bank it looks like they debited the account, without depositing the check. Thanks

electronic checking...the wave of the future. At my bank it cost $$$ to stop payment so I would want answers from them as to why the processed/debited the check. Inform them of the situation they put you in by not stopping that check. If that is the sole reason the other checks would bounce (not accusing here) ask them to reverse their actions. If other checks would bounce it becomes a moot point.

Just being nasty because I hate those businesses...they prey on those that can least afford to use them

[badd2323]

I hate them too...I don't know if you know how the process works when you take one of those stupid loans out. I wrote them a post dated check and then two weeks later I was supposed to go back and give them the money for the check. If I didn't show up they deposit it. They called when I didn't come in to pick it up, I informed them that I put a stop payment on it, and I had filed bk. They said ok and that was the last I heard from them. Looking at my account it looks like they just took it out electronically and didn't use the check I wrote them, they had prevoiusly tried to deposit the check but it had the stop pay on it and it wouldn't go through. If not for their actions no checks would bounce.

[SkankCheese]

Originally Posted by justalayman

First..look in the mirror and call yourself a dummy for ever going to one of those places

Word. I second that... from experience.

And them depositing/drafting it after you informed of the BK was naughty... and illegal.

[Ladynred]

1. Can they do this legally?

NO ! It is a violation of the Automatic Stay and they are in deep doo-doo for doing it. I'd be reading someone at the bank the riot act and find out why the stop payment was ignored.

2. If not what can I do to fix it, I wil have several hundred in checks bouncing, along with the overdraft charges.

Tell your lawyer ! Let him/her handle their illegal behavior and if necessary, ask your lawyer to file Contempt charges against them with the BK court - ask for sanctions, damages and legal fees !

[badd2323]

Thank you for your help. What type of sanctions and damages are typical for this type of thing?

[Ladynred]

Sanctions are pretty much up to the court. Damages are actual, those you can prove - like your bounce charges and overdraft fees and anything else they cost you by their illegal actions. You can most certainly recover all court and attorney costs connected with the Motion for Contempt.

[eponine]

but you'd have to prove that the payday loan company received notice of bk. they don't need to take anyone's word over the phone.

[Ladynred]

Actually, you don't. It's also pretty easy to produce the mailing matrix of creditors noitified by the bankruptcy court.