stop payment on check

[ellen8786]

What is the name of your state? Idaho

Just a quick follow up on the check advance/payday loan scam. What would happen if I stopped payment on this kind of check? I am going to file a Ch. 7, but need to wait until I can catch up my house payments and car payment using my tax refund, which won't be here until after the checks are due to hit my bank.

Could I get in criminal trouble for stopping payment on these checks to buy time until I file for bankruptcy?

I am not trying to defraud anyone, the checks will bounce anyway, it would just save my checking account and about $15 bucks per check in overdraft charges.

Reading this back it sounds awful, but these people are definitely predatory lenders.

Thanks, once again, for your help.

 

[Ladynred]

Definitely stop payment on the check(s). You are perfectly within your rights to do so, its not criminal whatsoever. What these payday loan places get away with SHOULD be criminal (they're banned in some states - should be ALL of them !).

 

[djohnson]

I agree that you should go ahead a do it in order to save the extra funds, but would like to say a worthless check is a worthless check and can still be criminal.

 

[ellen8786]

More follow up on this topic. Surfing the web I found a site which states a postdated check is not actually considered a check it is a promissory note, therefore it cannot be construed as a bad check if it bounces or has a stop payment put on it. This was on a site from a district attorney in California who prosecutes bad check writers.

Is this true nationwide or simply in CA?

Thanks again

 

[Ladynred]

Its also worth noting that in some states, post-dated checks are illegal. I seriously doubt that stopping payment on a post-dated check would ever end up in criminal charges. A 'bad check' for most people is a civil offense and usually comes with some kind of damages. Usually, to be charged as 'criminal' they have to show criminal intent.

There was a woman who posted here a month ago who was caught up in the vicious cycle of these payday loan scams with post-dated checks. The simplest way to actually pull the plug on it was to stop-payment on the post-dated checks. The same here, you have to break the cycle. Yes, they'll scream and pitch a fit and make noises about having you arrested, but its unlikely that they'll actually do it and unlikely it would hold water if they did.

You'd have to check the ID statutes to find out the law on post-dated checks, but I'd be willing to bet its close to the CA law.

 

[djohnson]

Here they do not allow warrants to be filed on post dated checks. A regular check with a stop payment on it though can still have criminal charges brought against them. Here a check isn't considered civil if you file a warrant. For it to be civil you have to turn it over to a CA and have them pursue just like any other debt. This almost never happens unless it's over a year old and you can't file a warrant. The thought here is that yes it's criminal in that you knowingly wrote a check that you knew the funds were not there for, however they knowingly took it knowing the same thing. They did not take it for immediate payment. In this OP case I think he would be fine if those are the only ones he puts a stop payment on. I do know someplaces will still allow it though, or atleast use to, I haven't checked recently. Just so he knows he can't put a stop on all the checks he may have out there because they all won't work the same.

 

[ellen8786]

I just wanted to say a quick thank you for your responses. I am very grateful for your advice. We are currently checking with our local prosecutor's office and the police on the legality of stopping payment.

I only hope these check and loan places will become illegal nationwide soon. I know I am the one who screwed up, but I didn't write these checks knowing I couldn't cover them, I actually thought I could, like most people who use these places I'm sure.

Anyway, thanks again.