Payday Loans

What is the name of your state? TN

I have done a couple of payday loans (Check Advance) over the internet. I had to recently close my checking account that these loans were on, due to lost checks. My question is this--one of these places is telling me that they can garnish my wages, but they have also said that since my account is closed, that they do not know what the state laws would do about that. I have tried to make payment arrangements with this company, but they demand payment in full. My question is, what legal action can they take against me for this? I owe the debt yes, and want to repay this. However, it was an oversight about the loan being on this account as to at the time all my thoughts were on keeping unauthorized charges being made on my account. Please advise.

janisk72 said:

What is the name of your state? TN

I have done a couple of payday loans (Check Advance) over the internet. I had to recently close my checking account that these loans were on, due to lost checks. My question is this--one of these places is telling me that they can garnish my wages, but they have also said that since my account is closed, that they do not know what the state laws would do about that. I have tried to make payment arrangements with this company, but they demand payment in full. My question is, what legal action can they take against me for this? I owe the debt yes, and want to repay this. However, it was an oversight about the loan being on this account as to at the time all my thoughts were on keeping unauthorized charges being made on my account. Please advise.

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My response:

What was the exact date of each PayDay loan?

What was the exact date you closed your checking account?

IAAL

I closed my account on June 10. The first loan was due on June 15, and the second on June 18.

janisk72 said:

I closed my account on June 10. The first loan was due on June 15, and the second on June 18.

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My response:

I think you may have made a mistake in your response. It appears to be saying that your account was closed before you wrote checks on that account to the PayDay loan company. That can't be correct. Please clarify and correct.

IAAL

Those were the days the loan was scheduled to be run through, or the post dated checks so to speak. The loans were done 2 weeks prior to these dates. I did not write checks on a closed accout, if that is what you are asking.

janisk72 said:

Those were the days the loan was scheduled to be run through, or the post dated checks so to speak. The loans were done 2 weeks prior to these dates. I did not write checks on a closed accout, if that is what you are asking.

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My response:

Okay, thanks for clarifying. Whew!

So, what seems to be the problem? The money, in it's entirety, should be in your possession - - principle and interest. The loans would have been due by now anyway. So, I'm not understanding why the money hasn't been paid back. Since you've been paid by now, go into their store and pay them.

Your original agreement with them wasn't "payments" - - it was payment in full by a certain date. Why do you need to make "payments"? You should have ALL the money by now.

What's missing from this equation?

IAAL

Because they are now saying that since I closed my account, this is a different situation and they want their money in its entirety, plus fees, since the account was closed. My question was, what can they do to me legally, because of that? As said, I have attempted to make payment arrangements, but they refused. It is not a choice of going into a store to pay these off--it was done over the interent in another state. I asked to make payments becuase of the fact that normally only the interest fees would be due, not the whole amount. Now they are demanding the whole amount and that I do not have. Besides the money borrowed was used for an emergency, therefore I do not have all the money to pay back.

They can't garnish your wages unless they sue you and win a judgment first, so that threat is bullcrap.

They CAN demand the full amount, and they are assuming that you did write checks on a closed account. IF they were to go so far as to sue you here in TN, they would likely make that an issue. If you have proof that the account was open at the time, then you could defeat that accusation.

Hard to say whether or not they'll sue, a lot depends on the amount owed, and I have seen cases of payday loan places suing here in TN. Even if they don't sue, they'll make your life a living hell with their harrassment - and the accruing interest. Interest on these payday loans is somewhere in the neighborhood of 350-400% !!!!! With any luck, the TN legistlature will finally outlaw these places soon.

payday loan arrest???

My situation is almost the same as the one in TN. I live in CA.

I wrote the payday loan checks and 2 weeks after, closed the checking acct. to avoid hundreds of dollars in return fees.

I've paid on most of the items and shaved the indebtedness to these firms (6 companies - via the Internet) from $3300 to $1100 over the past 6 months via payments. This is true except for one very small debt to a firm for $190.

I rec'd a call from them this AM, demanding either the entire sum or a phone number for my attorney. They are NOT a CA company and the call was from a collection agency. They would not provide me with any details - except to state that this is a BAD CHECK matter.

I simply do not have the money and need to know should I expect to be arrested? I've called our local Lawyer Referral Service and besides this I don't know what else to do.

Any advice would be appreciated.

outofdebt said:

My situation is almost the same as the one in TN. I live in CA.

I wrote the payday loan checks and 2 weeks after, closed the checking acct. to avoid hundreds of dollars in return fees.

I've paid on most of the items and shaved the indebtedness to these firms (6 companies - via the Internet) from $3300 to $1100 over the past 6 months via payments. This is true except for one very small debt to a firm for $190.

I rec'd a call from them this AM, demanding either the entire sum or a phone number for my attorney. They are NOT a CA company and the call was from a collection agency. They would not provide me with any details - except to state that this is a BAD CHECK matter.

I simply do not have the money and need to know should I expect to be arrested? I've called our local Lawyer Referral Service and besides this I don't know what else to do.

Any advice would be appreciated.

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My advice is to establish your own post. Your addition to the OP is called "hijacking a thread" and it is seriously frowned upon in this forum. You won't get a response unless you start your own.

apologize

My intention was not to violate the rules - in fact, I felt uncomfortable but after creating the response, I couldn't find a way to delete it. I did create my own thread that same day and I apologize.

I'm new to discussion boards... but I'm not a slow learner.

payday loans

I feel that it is critical to understand the concepts behind payday loans and the terms that you will be presented with in a payday loan agreement.

So before you fax anything back - here is a free guide for your review

Payday loan resource

janisk72 said:

I had to recently close my checking account that these loans were on, due to lost checks.

Click to expand...

Okay, to summarize, based on your subsequent posts:
You wrote a 'payday' check on June 1 (14 days prior to check due date of June 15).
You wrote a second 'payday' check on June 4 (14 days prior to check due date of June 18).
Then, you closed your checking account on June 10th, with both of these checks still outstanding (and possibly more).

How many days AFTER you closed the account, did you notify ANY and ALL outstanding payees of your need to close the account due to lost/stolen checks???

Also, as correctly noted by IAAL, by closing your account without those checks having cleared, you presumably would still have had those funds to move to your 'new' account, correct??? That leads me to my last question (for now)....
WHEN did you offer 'replacement' checks to the payday company's drawn on your NEW account??

Oh, and one more very important fact..... according to Tennessee law:
"47-29-101. Liability for dishonored check - Damages.
(a) A person who, having executed and delivered to another person a check or draft drawn on or payable at a bank or other financial institution, with fraudulent intent either stops payment on the check or draft, or allows the check or draft to be dishonored by a financial institution because of lack of funds, failure to have an account, or lack of an authorized signature of the drawer or necessary endorser, is, if found liable to the holder on the check or draft in a civil action, liable for:
(1) The face amount of the check dishonored;
(2) Interest at the rate of ten percent (10%) per annum on the face amount or the remaining unpaid balance of the check or draft from the date of its execution until payment is made in full;
(3) Any reasonable service charges incurred by the payee in attempting to obtain payment by the bank or other financial institution;
(4) Court costs incurred in bringing the civil action which is brought by the holder to collect on the check or draft; and
(5) Reasonable attorney fees incurred by the holder."

and
"(d) If the person who executed and delivered the check does not pay to the holder the full amount of the check or draft within thirty (30) days following certified mailing of written notice that the check or draft has not been paid and that treble damages will be sought, upon finding of fraudulent intent, the person is liable for, and the court shall award judgment for, treble the face amount of the check or draft. However, the amount awarded in addition to the face amount of the check or draft may not exceed five hundred dollars ($500)."

And guess what... this same statute includes:
"(e) A person must elect whether to pursue the claim either under this section or under title 39, chapter 14, part 1."

And that statute is CRIMINAL:
"39-14-121. Worthless checks.
(b) For purposes of this section, the issuer's or passer's fraudulent intent or knowledge or both of insufficient funds may be inferred if:
<snip>
(2) On presentation within thirty (30) days after issuing or passing the check or similar sight order, payment was refused by the bank or other drawee for lack of funds, insufficient funds or account closed after issuing or passing the check or order, and the issuer or passer fails to make good within ten (10) days after receiving notice of that refusal.
<snip>
(f) The offense of issuing or passing worthless checks is punishable as theft pursuant to § 39-14-105. Value shall be determined by the amount appearing on the face of the check on the date of issue."

and finally, the possible criminal punishment:
"39-14-105. Grading of theft.
Theft of property or services is:
(1) A Class A misdemeanor if the value of the property or services obtained is five hundred dollars ($500) or less;
(2) A Class E felony if the value of the property or services obtained is more than five hundred dollars ($500) but less than one thousand dollars ($1,000);
(3) A Class D felony if the value of the property or services obtained is one thousand dollars ($1,000) or more but less than ten thousand dollars ($10,000);
(4) A Class C felony if the value of the property or services obtained is ten thousand dollars ($10,000) or more but less than sixty thousand dollars ($60,000); and
(5) A Class B felony if the value of the property or services obtained is sixty thousand dollars ($60,000) or more."

The Tennesse statutes can be found at: http://198.187.128.12/tennessee/lpext.dll?f=templates&fn=tools-contents.htm&cp=Infobase&2.0

All in all.... it looks like you are in a heap of crap!!

Actually, I don't think so--nor do you have all the facts correct. The payday place was notified of the change in the accounts, yet they chose to run this through on the old account--not the new one. Two, according to Tennessee Law, a payday advance is not considered a check--it is considered a loan. In essescense, you are only giving the check as collatorel. It is not considered a bad check. Trust me--I do know this as I hve checked into this thoroughly, without any help from anyone here. if that was not the case, then people would not be allowed to file bankruptcy on a payday loan company, if it was considered writing a worthless check. You cannot file bankruptcy on a bad check written at Wal-Mart or Penney's or asnyplace like that. You will go to jail. So perhaps before you go quoting Tennessee laws on worthless checks, you might want to check the statue for Payday advance checks. I have. I also closed the account about 2 days before the loan was due, and yes the company's were immediately notified of the change in the account. Yet they chose to run through on the old account--thus making it immpossile to offer a new replacement check as you suggested here. Again, go back and read the staue of payday loan checks. Granted--your theory here is very correct if I had gone to Wal-Mart or the grocery store and written a bad check. But checks for loan companies are very different.

As for me being in a lot of trouble as you and IAAL have wanted to so strongly suggest, perhaps trying to put fear in me or what--I don't know. But this matter is said and done and has been more than settled with the companies involved almost immediately after it happened. I thought this might have been a good place to look for sugggestions as to help, but it turns out it is nothing more than a place for people who have nothing better to do than to humiliate or critizie people who are in desparate need of advice. I for one am glad to be rid of you both, and i have also notified the owners of this site as to both of you and your uncivilized attitudes. I also have spoken with a real attorney in regards to these payday loans and I assure you, he and they were more than knowledgeable about Tennessee state laws and they more than helped me reolve this issue. But at no time were there any threats as to what you tried to imply here in your quotes of Tennessee laws. Go back to law school and get a real degree--both of you. Now, leave me alone once and for all---find someone else to practice your so called law on.

Oh, and by the way--not once was I ever notified in writing as to the check as you said here--""If the person who executed and delivered the check does not pay to the holder the full amount of the check or draft within thirty (30) days following certified mailing of written notice that the check or draft has not been paid and that treble damages will be sought, upon finding of fraudulent intent, the person is liable for, and the court shall award judgment for, treble the face amount of the check or draft. However, the amount awarded in addition to the face amount of the check or draft may not exceed five hundred dollars ($500)."

Plus, as I had a copy of a police report stating my purse was stolen and this was why the account was closed, there was not any fradulant intent as you seem to want to make this appear to be. Now, closing an account with the purpose of not having NSF funds, that is very different.

Once again,. leave me alone. This is an official notice to you and to IAAL that any further attempts to communicate to me or with me with be considered harraassment. You do know what harrassment is, do you not? And as a lawyer, you do know what happens to people that harrass others, do you not? Doubt me, and find out. I may not be an attorney, but trust me I do know my rights. And I will execute them to the fullest extent allowed. So go quote that.