• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

need help please

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

meababy

Junior Member
What is the name of your state? ca.
hi i need some help. a good friend of mine took out a loan at one of those cash advance places. soon after she got laid off and ran into serious financial problems. she explained to them she would pay as much as she could as soon as she could . i tried to help her out as much as i could but i am a student on a limited budget. she got her balance down to 90.00 . she cant pay any more right now, the cash advance place told her she took to long to pay them back.they told her today the matter is being fowarded over to the district attorney for check fraud, they told her she is going to jail!!!!!. what can she do , she is a single mom are they going to put her in jail. im am heartbroken i dont know what to do. we dont know anything about the law. will she really be thrown in jail.
 


CdwJava

Senior Member
They are almost certainly blowing smoke. These businesses enter in to civil contracts and take civil actions against deadbeats. the police will not touch this unless intentional fraud can be proven. The fact that they had agreed to a payment plan is almost a guarantee that the police would blow this off as a civil matter.

She should get a hold o fthe last $90 and finish the matter to avoid further problems. But I seriously doubt that criminal charges are forthcoming.

However, most DA's offices do have "bad check" restitution programs, so THAT may be what they were refering to. Though these almost never go

- Carl
 

outonbail

Senior Member
Your post is confusing. You stated your friend "took out a loan from one of those cash advance places"

Then you state that they clain they "fowarded over to the district attorney for check fraud"

How did the loan become check fraud? Did she try to pay them back with a bogus check?

Defaulting on the loan is a civil matter and the police will not get involved but writing a bad check is another matter. The DA can have her arrested if she has been passing bad paper all over town on a regular basis. There must be more going on than you posted.

Or as Carl said, the check cashing/loan company is just blowing smoke and trying to intimidate her.

But taking out a loan and not paying it back on time has nothing to do with check fraud.
 

CdwJava

Senior Member
How these work is that you write a check to the company against the loan and you postdate the check or they promise to hold it until a specific date. The interest is very very high, but still legal.

They generally check people out pretty carefully before forwarding the money, but they do occasionally get stiffed.

- Carl
 

outonbail

Senior Member
Ok, I see, so it is not actually a loan but an advance on a check with the promise that their check will be good on such and such a date.

Like you said, I can't see the police getting involved unless there was intentional fraud on the friends part. Getting these people off her back asap by paying the $90.00 would be the best way to stop their agressive/shady collection techniques. Some of these check cashing places operate on the fine line between legal and questionable and personally, I would have nothing to do with them.

The high interest these people charge is an example of their shady tactics to continue sucking money from their customers. Making small payments to them each month could have paying off this $90.00, drag on for years.
 

CdwJava

Senior Member
outonbail said:
Ok, I see, so it is not actually a loan but an advance on a check with the promise that their check will be good on such and such a date.
Correct.

I agree with you, and I wouldn't go near one with a ten foot pole. I know some good and decent people at work at a local such office, but the interest rates are, to me, usury. But, I guess it isn't usury under the law.

And they mustn't get stiffed enough for it to not be profitable. Go figure.

- Carl
 

acmb05

Senior Member
at

CdwJava said:
Correct.

I agree with you, and I wouldn't go near one with a ten foot pole. I know some good and decent people at work at a local such office, but the interest rates are, to me, usury. But, I guess it isn't usury under the law.

And they mustn't get stiffed enough for it to not be profitable. Go figure.

- Carl
Approximately 800% a year interest rate(which is what it equates to be) They are making great money.

However they have no recourse to collect. They knowingly take a check that is not good when it is written. Of course she will never be able to use them or any other again because now her name will be in thier database and forwarded to all other check cashing places.

you write a check that is postdated for 230.00, they give you 200.00 for it and expect you to come back every 2 weeks and instead of paying it off which most cant do you pay them 230.00 and write another check for 230.00 and get another 200.00 so they are making 30.00 every 2 weeks on a 200.00 dollar loan.
 

acmb05

Senior Member
Let me rephrase something

A check advance is not actually considered a bad check if you dont pay. It is a loan just like if you went to the bank for a loan and they can if they want file a civil action and get a judgement against you. They cannot however file charges against you for a bad check.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top