Defaulting, what to do?

I know when I was dealing with my store fronts I contacted them before hand so that they knew that I intended to pay them back, but on my terms only. I told them I had closed my account due to identification issues. They were extremely easy to work with. Good luck on whatever you do, others will be along to offer you advice.

I work for a storefront pdl and will work out arrangements with the customer if they call us.Calling before the check bounces gives them more faith in you that you will honor your new terms with them.

toddms,ok thank you. But I don't think mine will be as nice as yours:) But I'll try.

speaking from personal experience, call them and work out a plan b4 your check comes back to them. they will take you to court, and they can garnish you. if you wait for them to get your check back, they will not work w/you on your terms.

It actually depends. Some storefronts have their own policies. Of course, call them first. That's the key. Try to set up payment arrangements. However, some will tell you that the check has to be returned by the bank before they can set up payments. I know this for a fact. Not ALL do this; however, a lot of them do. They have to have it returned back to them. Some will just turn you over to collections. They have their own procedures they follow. Call them first and see if you can work out some type of payment plan. Don't be surprised if they do tell you they have to turn it in to the bank and have it returned. It's not uncommon.

cannr you are correct, most storefronts will deposit the check, let it bounce then set up payment arrangements. the reason is that the customer has not defaulted until the check has bounced. It gives the company a legal leg to stand on so to speak should there be a need for legal action. Thats not to say that the company won't work with them and set a payment plan.

todd, exactly! I had some storefronts that told me they had to have the check returned before they could set up payments. And, yes, they did. Once it was returned, I had payment arragements. It wasn't a problem! So, it is a common practice.

Same for me. But I called the storefronts first and told them that I just couldn't do anything else and that if they cashed the check it would be returned to them. Then I also asked what my options were when that happened. I was laid off at the time and I ended up paying off 2 storefronts during that time. So talking to them first to let them know your situation can be helpful.

Absolutely. The first step regarding storefronts is contacting them. They will tell you if they need to send the check through, if they will just hold the check, if they just turn it over to collections. They'll let you know, believe me! But do not ignore them. Always keep in constant contact with them. :wink: