check cashing

[scared2325]

What is the name of your state? Alabama
A little over a year ago I wrote a check for $360(they have me give them a new check periodically) to a local check cashing business. I have been paying them $60 a month to hold the check. They are now informing me that I must pay $120 a month or the check will be deposited. If the check is deposited it will bounce. I am unemployed and cannot afford $120 a month. But I don't want to go to jail for a bad check. Please help.

 

[gobonas99]

Okay...I'm confused. You wrote these people a check for $360 over a year ago and have been paying them $60 a month so they won't cash the check. Have you been paying the $60 for the whole year? If so, $60 a month for 12 month is $720! So you have paid them TWICE what the original check was for!

And unless you habitually bounce checks, I sincerely doubt you'd get thrown in jail for bouncing one $360 check.

 

[scared2325]

This is one of those places that holds checks. I would have paid it out by now but my financial circumstances have changed and I don't have that much money at one time anymore. I am really afraid of what they will do.

 

[gobonas99]

Okay....maybe I'm out of the loop (or maybe it is something that is specific to Alabama), but I have never heard of places that will hold checks for you. I have always written my checks and sent them directly to the person/company it is for.

What was the original check for? A bill or a credit card?

 

[scared2325]

I don't know if this is something exclusive to Alabama or not but there are many of these businesses here.
It is a kind of loan thing. You write the business a check for a certain amount , then they give you cash back. ie..write check for $360 they give $300 back and charge you $60 to hold the check. As long as you continue to pay the $60 they will continue to hold the check. Now however they are telling me I was suppose to be paying $120 (60 every 2 weeks) and that if I don't start doing that then they will deposit the check. Yes, I have already paid them a lot of money, way more than the orginal amount of the check, but else can I do?

 

[Ladynred]

Close the checking account, get a new one if you can and then stop paying them their RANSOM $$$. They'll bitch and scream about fraud, be sure of that. The downside is it'll go to collections and they'll hound you but at least the cycle of paying these jerks ransom on a $360 check will be OVER. You could then work on paying back ONLY the amount of the damn check with that $60 a month you've been paying and it'll be OVER in 6 months.

The danger is that deliberately closing the account and letting them deposit it after the fact could be trouble if they push it, but you have to either get the $360 to pay them back or you need to do something to put and end to this cycle they've trapped you in. They'll soak you forever if you let this go on.

The Civil charge for a 'bad check' in AL is "Greater of $10 or actual bank charges."

The Criminal charges are as follows:
"Check of $500 or more, fine of not less than $500 nor more than $5000 or imprisonment up to 3 years, or both; under $500 check, fine depends on amount and offense. Court shall also order restitution to plaintiff; defendant shall pay court costs if convicted.

So, IF they were to go to the hassle of actually filing criminal charges against you, it COULD get a bit ugly if they go for the Criminal charges. Chances are it won't go that far, it costs them time and money. If, after you stop this, you MAIL them a letter offering to pay the $60 a month until its paid (6 months) that will give you something to back you up if it ever goes as far as court, it would at least show that you're willing to pay back what you originally owed them.

You fell into this HUGE scam operation and paid thru the nose for that $360. These payday loan-type places charge more interest than Tony Soprano's organization would charge.

There is a risk if you close the account, but you risk more by letting this continue as is.. time to do something about it and immediately send the letter (certified).. or borrow the money and pay them off for good.

 

[scared2325]

Another person suggested that I stop payment on the check. Then send them a letter telling them that I will continue to pay the $60 until the check is paid in full. Since I cannot close the account, (my husbands disability is direct deposit) I think this may be the only way I can resolve this. Even though I have already paid them twice the amount of the orginal check (and I only got $300) I am willing to pay the check off. But I cannot pay them $120 a month, that is outrageous. Thanks for your advice.

 

[Ladynred]

Another excellent idea, stop payment on the check will work for sure. They'll still kick and scream, but you've got to have a way out. Do the stop payment and also also ask your bank if they will block any other attempts by that company to cash or draft from your account, since they could try that too with your bank info.

Then send them the letter offering to continue to pay the $60. Its always a good idea to create and keep a paper trail, just in case

Good luck!