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Posted: Mon Apr 09, 2007 11:03 am

Last week I closed my checking account to try and gain control over my finances, as many of you have suggested here. I currently have payday loans with the following:

LoanPoint USA - Geneva Roth - overpaid!
Sonic Cash
Purpose Loans - First Bank of Delaware
Ameriloan
OneClickCash - overpaid!
GW Financial
Little Loan Shoppe
Payday Yes

I've sent all of them written notification by fax or email that my checking account has been closed and they should no longer try to ACH or write checks against it, etc. I also asked them not to call me, my references, etc. as I will be dealing with a debt management company to repay my debts.

Even though my direct deposit is scheduled to be sent to my new checking account tomorrow morning, I've still very nervous about this whole process. Will the PDL companies comply? Or will they try and debit my old account or try to acquire info about my new account? I'm just wondering what I'll have to deal with in the next few weeks and hoping I can pay my rent and electric and still have money for groceries and gas.

I'd love to hear from anyone who has been through this and find out how painful the whole process might be.

Thanks,
~b

Posted: Mon Apr 09, 2007 11:06 am

b, thanks for the info!! The first step is closing your account. This process isn't painful, it just takes some guts. These companies are going to call you and threaten to arrest you, make judgement against you, etc. The thing you MUST remember is that they cannot do any of that. Those are scare tactics only!

So, for starters, how much have you paid toward these loans, and what is the princial amount? What state do you live in?

Posted: Mon Apr 09, 2007 11:17 am

I would ask the bank if they reopen accounts if there is an ACH attempt made? Hopefully not, but better to be safe than sorry and do not be afraid to let them know what is going on and why you chose to close your account.

Aslo as sswett said, please let us know what state you are in.

Also if you could let us know how much you have borrowed and how much you have paid each company, that will give a little more to go one.

I think as long as you have a new account, you should be ok to pay what you need to pay. Not sure if they will try to find out about your new account, but make sure the bank knows to not let ANY ACH withdrawals go through without your permission. That might be a bit hectic for a while, but it may pay in the long run.

Don't panic, you have come to the right place for advice, encouragement and support. Know that you are not alone and many of us have been and still are dealing with pdls. It will be ok, but understand it might take a little time and little work, but once it is all said and done, you will feel a big relief. Hang in there!!

Posted: Mon Apr 09, 2007 11:35 am

I am in Virginia so the payday loan limits are 15% per 14-day period or 390% APR. Below are the amounts I've tracked in my checking account so far.

LoanPoint USA - Geneva Roth - borrowed $300, Paid $939, asked to mark PIF and refund
Sonic Cash - borrowed $150, no payment yet
Purpose Loans - First Bank of Delaware - borrowed $300, paid $69
Ameriloan - borrowed $300, not sure of payments
OneClickCash - borrowed $300, paid $780, asked to mark PIF and refund
GW Financial - borrowed $500, paid $70
Little Loan Shoppe - Borrowed $250, paid $300
Payday Yes - not sure

I need to request paper copies of my bank statements to verify the above figures since I can't access that account online anymore.

I did ask the bank (BofA) about future ACH debits and the lady said they would put the account into the negative but I could dispute any charges which I had notified to de-authorize the charges. I just hope there aren't any or just one or two to deal with. Guess I'll find out in the next few days.

Posted: Mon Apr 09, 2007 11:42 am

I just got a notice from GW Fin and when I logged in the website said I was "delinquent" which I guess means they have defaulted the loan. I guess this is a good sign:

Posted: Mon Apr 09, 2007 11:49 am

Make sure that your bank does not give out your new account number to the loan companies. Other than this, I don't see there is any way they get your new account number.

Posted: Mon Apr 09, 2007 11:56 am

My bank was wonderful to work with. They closed out my old account and opened a new one with numbers -- and they said they would not allow any new debits into that old account or carry them over into the new account. They were even able to take my directly deposited paycheck and move it into the new account. Whatever you do -- DO NOT GIVE YOUR NEW ACCOUNT NUMBERS TO THESE PDL COMPANIES!! Just don't do it no matter what!!

Things will work out -- I had two accounts marked Paid in Full within two weeks of closing out my old bank account.

Just one thing-- is your account in the negative? Mine wasn't so, that may be a factor of closing out the bank account.

Posted: Mon Apr 09, 2007 12:01 pm

OutofDebtin07

Most banks and credit unions will close out the account at your request, but if new ACH items are coming in, that WILL put you in the red, and you'll be sent a notice.

And there really isn't a way for you to dispute payday loans when they hit your account. If your dispute with your bank is that the charge is not authorized, there will be a set of channels they'll make you go through, which may include filing a police report. Please remember the loan agreement when trying to claim certain ACH's were unauthorized.

It's also advisiable to not completely close out your account. If you really need to protect it, ask a bank representative to give you a new account (which will include a new account #), and to block all ACH's.

If you do decide to block all ACH's, please remember that you won't be able to do any checks over the phone that don't have check #'s to it (automated checks), or car payments, heating bills, or insurance that may be automatically deducted from your account each month.

Regards
Mike

Posted: Mon Apr 09, 2007 12:01 pm

Nope, thankfully I closed my account with a $0 balance and had already moved the funds to my new checking account at the same bank. I'm hoping they all just get an "account closed" notice like I told them I would in my letters. I also applied for a checking account with another bank that I eventually want to move to... once I sign that paperwork I will have another account to work with. I only plan on sharing my account info with legitimate billing companies, such as for my electric and credit accounts, etc. Hope NEVER to PDL again! Rolling Eyes

frogpatch · Posted: Mon Apr 09, 2007 12:14 pm

OODin07, You were very fortunate! I got my account to +47.00 but the bank would not close it until it was positive for "a while". Now it is -1100.00 due to PDLs that would not stop. I filed a complaint with my State Dept. Of Finances but they are very unresponsive here in Florida. FYI Sonic Cash is very easy to work with on your terms. Geneva Roth is slime. They will continue to debet your account no matter what you tell them. They turned me over to collections and still continued after they charged off the debt. They seem to change names and move all the time so no one can catch them. They are now in Oklahoma after being sought after in New Mexico. THE WORST. Do not pay them anything!

Posted: Mon Apr 09, 2007 12:22 pm

Banks go both ways - Either they are very helpful and nice and work with you to get the account closed, or they won't help you at all, don't tell you what your options are, and your account ends up going deep in the red.

I'd specifically ask the bank what their policy is for ach debits that may go through within 30 - 60 days of you closing your account. Some banks will force the account back open and allow the account to go negative. I would tell the bank that these companies you are dealing with have a habit of continuing to debit people's accounts after authorization has been revoked. If they do have a policy of forcing accounts back open, they could put an ach block so nothing new could go through.

Posted: Mon Apr 09, 2007 12:25 pm

When I talked to my bank, I was just honest. I was having a finacial hardship and took out some PDLs and I was unaware they were illegal in my state and they are taking more money than I authorized them to, and I want to deal with the directly without causing myself more financial hardship. I felt really embarrased, but the woman I worked with was really understanding and said that she has seen this happen before and to not worry and she wished me luck. Smile

Posted: Mon Apr 09, 2007 12:31 pm

What's funny about Geneva Roth is that I haven't gotten anything from them yet -- usually I get that extension letter to fax back before each payday, and I think that usually comes about a week before my payday, maybe less. I sent them a letter on 4/5, by then I should have gotten my renewal notice. Pretty strange - wonder what's going on there.

Posted: Mon Apr 09, 2007 12:32 pm

I've said this before - smaller banks like hometown banks are generally more forgiving than other banks. I was suprised when you said your bank was BoA and that they worked with you. My experience is that megabanks don't really care what kind of plight you've seen, they just want their money. This payday loan stuff is a nightmare...total nightmare. Just don't let it get you down... some of the happiest people I know are flat broke 99.99% of the time...

Posted: Mon Apr 09, 2007 1:26 pm

As far as banks go, and I work at one, if you tell us why you need to close the account, and are honest, we will DEFINITELY work with you and try everything in our power to make sure you don't get fleeced by companies trying to take money out of your account after you revoked authorization. I've had many customers close an old account and reopen one to keep some company from taking money out. AOL and 24Hour Fitness used to be the worst. If you are up front and tell your banker or the manager that you are afraid these companies will continue to try and take your money out, they can keep an eye on it and help you fill out any forms if they do take money. It's called an unauthorized ACH. They can also do an ACH swap so your direct deposit will go into the new account. Just ask the manager or an experienced banker. Let me know if you need any help. Very Happy

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