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In California if you close your checking account so storefront payday companies can't debit your account. (Because I want to work out a payment plan, can't keep up with the cycle of reborrowing and paying fees)Can you be in big trouble? Anybody in CA been sued by storefront companies over a 300.00 loan?

Posted: Sat Apr 07, 2007 7:13 pm Subject:

Go to paydayloaninfo.org and look up your state...It will tell you if closing your account on a storefront can result in criminal action

Posted: Sat Apr 07, 2007 7:19 pm Subject: closing account

thanks Leah for replying. The law says that they cannot take any criminal action against me if for ANY reason they can't collect their money. But, they do have this binding arbitration clause where they can if they choose to come after me to settle our diiferences. I have the option to opt out within so many days of signing. I still have time just don't know if I should opt out. Thanks

Posted: Sat Apr 07, 2007 7:27 pm Subject:

The worst these storefront lenders can do is civil suit you...But in most cases they may be hard with you at first but if you stick to your guns and show them you are going to pay them they are a ways away from suing you....Just make sure that whatever arrangments they finally agree too that you stick to them!

Posted: Sat Apr 07, 2007 7:29 pm Subject:

I live in California and closed my checking account for that exact reason. Would you please explain "opt-out"? I have heard it before, but don't know the exact meaning.

Posted: Sat Apr 07, 2007 7:54 pm Subject: RE: Opt Out

In California storefront payday loans can not criminally prosecute you for a bad check. They also can not use the civil bad check laws, like tremble damages. However , they do have you agree to binding arbitration clause. It pretty much says that you can not sue them or join in a class action lawsuit against them. That all differences shall be resolved through binding arbitration and it shall survive the bankruptcy of either party, and any other suit you try to bring against them. You can go only to small claims court but, if either party rejects the decision of the small claims court, then it will be decided through arbitration.

Okay, so at the very end of this 5 paragraph arbitration clause, 5 of my 7 payday loan contracts say that I can "opt out", which basically means refuse this binding arbitration clause that I signed, If I follow their procedure, which basically is to notify them in writing that I want to opt out of binding arbitration, and you have to do it with in so many days usually 10-30 days from the date that you signed the contract. But, the part that I'm not sure of is if this binding arbitration clause is used to protect mainly their butts, or if they really use it to go after you if you default. Several of the contracts state that if you cannot pay the fees for the arbitration they will pay your part no matter the outcome, whether or not you initiated it.

Posted: Sat Apr 07, 2007 7:59 pm Subject:

I dont know about all that...I do know that the likelihood of them taking you to court over a small amount is slim...but you should contact them and make appropriate payment plans...

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