Closing a Bank Account to Avoid Transfers by a Payday Loan Company

[jasgal]

I am paying on several payday loans and I am losing control. I was told to close the bank account, and try to work out a different payment. they are internet payday loans. Is there a chance of criminal charges for closing the bank account? I am so scared but unable to sleep at night. Its making me sick. Please help I need out....

Thank you

[Antigone]

I am paying on several payday loans and I am losing control. I was told to close the bank account, and try to work out a different payment. they are internet payday loans. Is there a chance of criminal charges for closing the bank account? I am so scared but unable to sleep at night. Its making me sick. Please help I need out....

Thank you

criminal penalties ~ California. Where amount is less than $200 and is first offense, up to one year in county jail.

civil penalties ~ California. Amount due, damages of treble the amount so owing, but in no case less than $100 or more than $1, 500. [Civil Code § 1719(a)(2) ]

It could be considered criminal because you authorized them to debit your account and have now closed that account.

[KeyWestDan]

Closing the account without making any payments could be charged as a criminal offense.

The loan is paid by ACH transfers, not a check. If you write a bad check, yes, you are liable for criminal and civil penalties. Preventing an ACH transfer has no criminal liability attached.

If the internet loan company is not physically in your state, the odds of them getting anything done by law enforcement in your state is slim to none.

If ANY payments are made, it is a civil matter.

Morons here notwithstanding, if there is an agreement and one or more payments are made, it is impossible to be criminal. It is civil.

If that was not the case, we would be back to the English system of law with debtor's prisons and work houses.

As an example, a Las Vegas singer lived in Key West for a while and purchased a boat from a local woman. He paid $500 down and was supposed to make payments on the boat for a total of $5,000 or so. He did not make any of the payments and the woman wanted the sheriff to arrest him. The sheriff refused so she went to the newspaper to complain. It was explained that if there is any payment, it is a civil matter.

This is a basic principal of law but it is not clearly spelled out very often.

[jasgal]

I have intentions of paying them, but I am having troubles. I am not wanting to get out of paying them at all, so does anyone have any idea of how quickly they will come after me,

[jk]

if the company you are dealing with is like most the other payday loan businesses;


instantly

[bradbb2005]

Why don't you call them? also, did you ever see the interest rate on those? my mom took out one of those one time.....600% interest, no joking....you should see if that is the case, if so you may not need to pay all that back....

Edit: just realized this thread is wayyyy old...