I too need help with pdl in Texas.....

are these internet or storefronts?

here are the Payday loan laws for Texas (just select your state),

http://www.debtconsolidationcare.com/paydayloan/explain-pdls-laws.html

they are all 3 storefront. I have read the law for the state of Texas but sorry don't understand. I am thinking about putting stop payment on these and then closing my account. need some more advice..

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 headaches!

have you tried to contact the store first and talk to them about your situation? they might be willing to work with you.

yes, I have asked them to work with me but they refuse! One told me that they will take me to court. I just don't know what to do. I am going to the bank tomorrow to talk with the branch manager. My husband wants to put stop payment on the loans first then close out the account.

I also would like to know if these pdl are legal? How do I find out? What all can they do to me if I just don't pay them at all?

First off, do you have the contracts still? Please look at them and see if the words "Credit Service Organization" is anywhere on the paperwork. This would mean that the company is operating as a CSO, and that the laws above would NOT apply to them. Most storefronts in Texas operate as CSO's to avoid the laws.

yes, on 2 of them it has CSO and on the other one it has ACSO. What does all this mean?

I wonder what all they can do to me?

This means that they are all Credit Service Organizations, and the laws posted above don't apply to them.

so what does all that mean goudah? im curious.

ok read this but sorry I just don't understand this! I must be stupid or just can't cope right now the way I feel! but legally what can they do to me if I just put stop pay and close out my bank acct.?

No, you are not stupid! Don't even say that crap!

A CSO is pretty much a slick way for these businesses to get around any consumer protection laws. It's crap, but it's legal for them to do this.

Technically, they are not funding the loan to you. They are "hooking you up" with the loan company, and will service the loan for that company. You only deal with the CSO.

What this means for you is that these loans are going to be legal debts. Legally, if you don't pay, they could sue you, win a judgement, and garnish your wages or attach your bank account (depending on what your state allows). This would also show up as a judgement on your credit report.

But you can close your bank account. Just be sure to keep up communication with the companies, and set up payment plans with them. Don't agree to more then you can reasonably afford to pay, because if you default on a payment plan it's much harder to get them to ever work with you again.

I'd actually recommend that you close your account. At least that way the rollover fees stop, and you can make arrangements to pay down the balance. Otherwise the cycle just continues . . . .

well the problem there is they will not work with me until after the loan goes to my bank and fees happen and that is what I don't want! My bank will cover up to $500.00 so the pdl will get their money and I will be stuck paying the bank with fees that I don't have.

2 of the pdl are not due until Friday, Nov. 2, but that is why I am asking what do I do now?

Go talk to your bank first. Tell them that you lost your checkbook, and need to close the account and make sure that nothing else can go through. Read the sticky about closing your account. It mentions some holds and such that the bank can do to stop anything from going through.

Yes, the company will be able to add an NSF fee onto the account. But $25 or so more is better then continuing to rollover the loan and not get anywhere. You have to make the jump eventually, or else things will just continue as they are.

but should I pay the $33.00 to stop the payment first then close out my account?

No, I wouldn't do it like that. I would go to the bank, tell them you lost your checkbook, and need to close the account. Once the account is closed, the checks will be returned back to the CSO's unpaid. Just make sure your bank makes it so NOTHING can go through that closed account.

Then, before your due date, call the places and tell them you had to close your account due to you losing your checkbook. They will probably say they will still put through the checks. But you will then be able to make payments on the balance. It sometimes can be hard to get these places to accept payments.

Another option is this:

Some of these places are members of the CFSA. The CFSA requires members to allow customers to enter into an extended payment plan. It's called an EPP. You MUST ask for this at least 1 busines day BEFORE your loan is due, or else you won't qualify.

This way they won't put the check through. But you will have to pay in 4 equal installments, which can be too much for some people.

This is so freaking crazy! I just dont have the MONEY TO PAY THESE SUCKERS! and as soon as I close out my account, then HELL WILL START UP FOR ME.

What do you call what you are in now? Not hell?

You have to make the jump. Sooner or later, something has to give.

You won't be arrested. You can't be. The worst that can happen is you get sued. But these companies are not going to sue you as long as you keep up communication, and pay something every month. Even $20 will keep them from suing.

It's really your decision, but it's not going to get any better. You know it's a problem, and you have to find a way out.

fitz, take their advice. You will feel so much better. I am currently going through the same thing right now and they have really helped me. The lenders have started calling me but it is better to tell them I don't have it this is what I can pay you than to pay them everything you have and then not have any food or electric or a place to live. I also live in Texas and have researched that you can not have you wages garnished. If you don't think you can deal with them try a consolidation company.

I am just afraid of the bank letting the pdl go through even after I put stop payment on them and close my account because of what I read about before you close your bank account and something about the bank policy. To me if I put stop payment on these suckers and close the bank accont, then how can the bank allow them to reopen my closed accont? sounds stupid to me! and just DON'T WANT the pdl to give bad checks to the DA for my arrest. The deal is, I am primary on the account, but my husband is the one working and the one that signed the checks.
_________________

That has to do with ACH transactions. These are paper checks, right? Also, you can have your bank block any debits. This will stop the checks from going through, and you won't even have to pay a stop check fee for each one.

I went to my bank and told them that there was fraud on my account because some of the pdl's i had were illegal and they closed my account. I did open a new account with them but because there was fraud on my account it closed and would not accept any new ach transactions. I made sure to let them know not to open the account for anything and they blocked everything for me.

Can someone please tell me what ach transactions mean? I have been told it takes 10 business day for an account to be closed all the way, but I don't understand that if I have nothing out.

Ach means automated clearing house. I never heard of it taking 10 days to close an account. As long as your account is not negative you should be able to close it. Do you have anything that comes out automatically each week or month?

When you go to the bank, don't just try to close your account like normal. You have to tell them that fraudulant activity may occur, and that your account information has been comprimised, and that you need to make sure nothing else can go through.

yes on the 25th of each month I do. So, if I just go to my bank and tell them that my checkbook is missing and need to close my account----they will do that instead of me having to pay $33.00 for each pdl out? I have the check #'s and the information for the other ach that comes out of my account on the 25th each month.

I have no choice but to pay the $33.00 stop payment then close out my account because if I don't the pdl can give to da as hotchecks right? SURE DON'T WANT THAT TO HAPPEN.

I do not think so - Payday loans are considered different then just writing a check. If it makes you feel safer, then go ahead and spend the money, but in the end it really doesn't make any difference.

crap, I don't know which way to turn! but isn't it considerd a hot check if you know you write and/or give someone (pdl people) and don't have the money in back to cover? Seems to me if I just go tell the bank I lost my checkbook and close my account then the pdl's will send the check in and OH BOY TROUBLE. I know that if I close the account and/or put a hard freeze on my account and the pdl's send the checks/or electronic in, then wouldn't the pdl's send the hot check to the DA? Jesus Christ I don't know which way to go.......

2 of the payday loans are due tommorrow and I know I just don't have the money to pay not even to pay off and renew (which i DONT NEED TO DO). I have the money to put stop payment to keep them from sending to DA. But not sure if the bank will let me pay the stop payment then close the account and to DAMN SCARED TO FIND OUT.....

It's not considered the same thing as writing a check at the store.

I would suggest you call:

Regulator: Texas Office of Consumer Credit Commissioner
Address: 2601 N. Lamar Blvd. Austin TX 78705
Phone: (512) 936-7600

And ask them about closing the account/stopping payment on the checks. They can tell you for sure if the pdl's can turn the check in to the DA, but I'm pretty sure they can't, unless it was a bad check from the start, which it wasn't in this case.

LoL, I just got off the phone with the Texas Office of Consumer Credit Commissioner and the lady I spoke with said,"there needs to be something done about these pdl's". To her knowledge---she can't say if these pdl's are legal or illegal for what they are doing. I find that kinda strange coming from a person that works with the state of Texas! She told me to call my county clerks office to find out if the pdl's can send the checks to the DA. So, I guess that is what I am going to do. Try to find out if I can just go raw on the pdl's and close my bank account instead of paying $33.00x4 to stop payment on these suckers. Will let everyone know what I find out.......

I called my County Clerks Office and Lord, what a JOKE! These people can not tell you anything and said to contact a Lawyer. I wonder who all if any on this board has really went bad on the storefront and/or internet loans? What all did they do to you? Did you close out your bank account? Did you pay to stop payments?

Guest-Are you fitztex, not logged in? Not sure what a County Clerks Office would do. Goudah posted some great contact info in a few threads above this....give that a try! :D

He/she tried there already.

I can tell you this, I've been on these boards for over a year, and seen many people in trouble with payday loans in Texas. Many with storefronts. I haven't seen anyone come back and post that they got arrested or in any criminal trouble for closing their bank account. It's not handled the same way as bouncing a check, because it's a loan.

I would say you are 99.999% safe, and that is just because I cannot say 100% for sure.

well, went to the bank yesterday and it is to late to put stop payment on the pdl's because they said it takes 24-72 hrs and with 2 of them being due today I did not do anything and husband doesnot want to just close out accounts. so guess what.......we are going today to renew loans.....

Sometimes you have to do what you have to do.

But - Now you have no excuse. You will have a full 2 weeks to figure out the account situation and get things fixed up.

Also, ask the storefronts about any sort of extended payment plans they offer. When they are CFSA members, they must offer one. You may not be eligible until your next due date, but at least you can get some more information about it so you can think about what is best for you in the next week or so, then but that plan into action.