Payday Loan

[MrJenkins]

What is the name of your state (only U.S. law)? OH

I was barely getting by and obtain a few payday loans. After the cycle I was not able to keep up. I had 2 ongoing payday loans.
1) online company
2)in person company

How it happened, I am not sure, but these are the SAME companies(not even sure that matters)

The online loan was from September 2010. The in person loan was satisfied in October 2010. I tried to save money and pay off the other one and forced myself to cut off the other loan in an effort to pay my obligations.
Due to financial stress, I was forced to file bankruptcy. I filed February 2010 and included all known debts. This was chapter 7. I had no assets to my name.

As of last week, my work/boss has been receiving calls from a collection agency claiming to be in regard to a COURT CASE. I spoke with them and told them I filed for bankruptcy. The lady I spoke with stated that this was a bad check, so I could not include it in bankruptcy so if I don't pay it, they will be filing charges. They have called every single day since then, leaving messages and telling my boss the police will be coming to my work to pick me up.

I am freaked out of my mind. I got into a lot of debt and I have just recently been trying to recover. I have a steady job and after bankruptcy know how important it is to live within my means and to pay my obligations.

Am I going to jail over this? What should I do ? Any extra money I had was reported to my trustee and I have not had any issues. I was looking at a discharge soon and I don't want this to mess anything up.

Should I tell my trustee that there is this issue going on? How long will I go to jail for?

 

[cosine]

Did any payment by check ever bounce? A non-honored check is not the same as a debt not paid. It can be a criminal case.

Ask them for the check information, either a photocopy of the check, or the number and date. Cross check that check with your checking account info. Did you write such a check?

 

[MrJenkins]

Did any payment by check ever bounce? A non-honored check is not the same as a debt not paid. It can be a criminal case.

Ask them for the check information, either a photocopy of the check, or the number and date. Cross check that check with your checking account info. Did you write such a check?

They only had my bank account information. Basically they withdrew money for payment from my bank account (this was online payday loan). Basically they got their first couple of payments but when they went to withdrawl the money it was returned because my account had less than the amount in it. Obviously I went OD and that account got shut down. After that is when I filed

 

[CreativeBlock]

Did any payment by check ever bounce? A non-honored check is not the same as a debt not paid. It can be a criminal case.

Many state's bad-check laws are tailored against that sort of scenario when it comes to payday loans. The argument seems to be based on payday loans that are structured where the borrower leaves a post-dated check to be deposited at a certain date. The argument being that by the very nature of the transaction, the payday lender knows (or has good reason to) that the check is not "good" at the time that it's received.

I haven't found the actual case law, yet, but I did find this regarding Ohio's bad check laws in regards to payday loans:

"Ohio amended its bad check laws to prohibit payday lenders from claiming to be the victims of fraudulent bad checks in order to sue for triple damages as victims of crime."

http://www.consumerfed.org/pdfs/paydayreport.pdf

Still trying to find a legal cite. :/