While doing some research on state financial codes for deferred presentment, aka payday loan I found that California has most user-friendly and well-defined laws. It also says that NSF checks which are involved in Deferred Presentment Business will not fall under other bad check laws.
Almost all the state code states that if a check returns due to NSF or closed account, no criminal charges can be brought against the customer; however, the lender can take up certain civil processes to get the face value back. And I am sure that companies doing illegal business will never show up to the civil court. What do you all say? _________________ Register today to encash debtcc points.
The bigger problem in California are the iPDLs. The standard storefront PDLs simply charge a fee for a postdated check. Too many people are still unaware of the illegality of the iPDLs in CA, and as such are at risk to be preyed upon. However, the threat of civil action against a borrower should be minimal at best, CA has ordered a good number of iPDLs to stop doing business with its citizens (at least 40). I cannot see any company that has been ordered to stop lending in CA file a lawsuit, thus putting on public record that they failed to comply with the attorney general. _________________ The only people with whom you should try to get even are those who have helped you.
-John E. Southard
I think the story of IPDL's is true for all the states. It's mandatory for the lenders to send the consumers a written agreement, signed as well, but all the IPDL's fail to comply to this rule.
I found that California has most user-friendly and well-defined laws. It also says that NSF checks which are involved in Deferred Presentment Business will not fall under other bad check laws.
