Help! I think I may have messed up....

Please read the following regarding your checking account. Close it if you can

Before you close your bank account due to payday loans eating away at your paycheck, please read this.

Some banks have a policy regarding ach transactions that allows them to force open closed accounts if any ach transactions go through within a certain time frame after the account is closed. This can leave you owing a legal bank $1,000's and reported to chexsystems, instead of owing barely legal (or not at all legal) payday loan companies. Not a good thing. Ask your bank what their policy is on ach transactions on closed accounts before you close the account. It's best to go in person and talk to a branch manager.

If your bank does have this policy, tell them your situation. Don't be embarrassed. Take letters with you showing that you have revoked authorization for each of your payday loan companies to debit your account. Tell the bank to put your account on deposit only, an ach block, or a hard hold before they close the account. Your bank can do one of those, don't take no for an answer. This will prevent any payday loan ach's from reopening the bank account.

It'a always best to close your bank account. Leaving it open gives ways for the payday loan companies to continue to take money out. These companies have many different dba's, so blocking them won't work. They will also produce paper checks and run them through your account. Closing the account is the best way to prevent these companies from taking money out of your account.

Some state laws do allow for prosecution if you close your bank account, but that is usually in cases of fraud. But it's always best to check with your state's attorney general or department of financial institution before you close your account. You want to make sure you are not causing more heacaches!

Just putting a stop payment on your pdls wont really help. They will put them thru for a dufferent amount, or these companies have so many different names they will just debit you under another name.We reccommend if you can, to close your account and open a new account at an unrelated bank. This is the only way to be sure that no more money is taken from you.

royce-I see you mentioned yuor account is already closed..is you concern being prosecuted for a bad check??

Here is the the Payday loan laws for Texas (just select your state),
http://www.debtconsolidationcare.com/paydayloan/explain-pdls-laws.html

As you can see roll overs are not allowed and that's what usually costs us so much. If you would like to list the name of each loan, how much it was for, and how much has been given back including fees, we can see where you stand and can give you more advice.

Ok I read it wrong. You say you put stop payments on your ach debits, then you say that your account is closed. Either way we can help, but please clarify

That was great info you posted Kash! Yea, I had to do a double take too :?

I put a stop payment on all ACH's coming out of the account (it was either this or lose my car- I already had to give my apartment up) Wells Fargo has closed the account for me (we had to wait 24 hours to make sure there was nothing else coming through. I just want to make sure they can prosecute for bad check. I am trying to get together everything I owe to PDL's-- Some I have paid for months on end just the interest.

royce...you can handle this...we have all been ther (I had 10 and have cleared 8 so far). It's work but you can do it and we can help. You found a good group of people here....

They are now calling my work and I am afraid my boss is going to find out what is going on. I am telling them not to call but they all are pretty much calling everyday and on the weekends.

Is wells Fargo one of those banks that force open closed accounts if an ach comes thru. You need to be sure that if infact your account is closed it remain closed.

Royce....you can send them letters revoking their right to debit your account, revoking their right to any wage assignments and also telling them you can not recieve calls at work. If they then call you they are breaking the law. you can and should file complaints against them with your state attorney's office, the BBB and the FTC. Usually we do this after we have sent letters. If you post what you have paid (including fee's) on each one we can then walk you through the process.

The assistant manager to the branch I am banking at stated there is nothing else that can go through that account. Once closed and verified closed (24 hour pending period) that I was finished with Wells Fargo. Anyone else dealt with Wells Fargo on this matter?

CashNet- Amt Loaned $800; Amt to pay back $1186.46
US Fast Cash $400; $520
My pay day loan $1000; $1225
Loan Shop $400; 520
THere are more just hard to find since I do not have my bank account anymore but here are the starters.

Ok i see the ampunt borrowed. You have amount to pay back???
How much in total did you actually pay to each lender

The second amount on the list is what they say I have to pay back. I have just been paying interest. I have several to pay back but I am trying to go through bank statements to give the exact amount I have paid back. I should of got this off line before I closed the account.

Wells Fargo usually does force open closed accounts for ACH's . . . . But maybe the person that closed it put a block on it so that it won't reopen . . .

I would keep an eye on things . . . . They are one of the worst banks to deal with.

royce...if you know what the fee was, ie: like $60. every two weeks...and you can figure out when you got the loan...like 3 months ago...that would be 6 payments or $360.. You might be able to figure it out that way if you know the dates you took out the loans.

Royce-I got your PM...I see your concern is prosecution for the stop pays.


Does anyone have info on the NSF/Stop Pay laws for Texas??

These are all internet loans that were ACH. You never wrote a check that could go bad so they can't prosecute for anything and most PDL laws protect the borrower against bad checks anyways. All you did was lock up your bank account so they can't rip you off anymore. It is highly unlikely that an IPDL would ever be able to file criminal charges since no physical check is ever written.

What they say you owe means nothing. You need to post the amount borrowed, the date and the total amount you paid them so far per your records. There is no way you could owe them more than what you borrowed if you have been making regular payments and I suspect you probably paid most of what you owed already according to your state laws.