payday loans and checking account in jeopardy

Date: Thu, 04/08/2010 - 09:19

Submitted by anonymous
on Thu, 04/08/2010 - 09:19

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Total Replies: 1

Can anyone tell me what to do now, I went to my bank again and because the account is negative ($1900) due to NSF fees on loans that are being presented over and over (mailny Star Cash Processing, Cash Advance Network, Cash Central, and I was told I could not close the account and pretty soon it would charge off ( I dont want this of course).. How can I protect myself and if this is charged off what will happen the bank Mgr says it will go into collections and I will have to resolve then, I am waiting on a return call from him today because he says he was not certain how long my account would remain in the negative before they took action to close it. I asked about the ACH block or revocation and he says that was not a option because I have contracts with the loan companies so it will continue to be a circle until they close my account. At this point I dont know which way to go or who to talk too about this. Any advice would be appreciated greatly

First, find out if the PDL companies you are dealing with are li

First, find out if the PDL companies you are dealing with are licensed lenders in your state, and what your state laws are concerning PDL's. Are these online or storefront? If they are, in fact, not legal in your state, or not complying with licensing laws in your state, they are not legal lenders, and therefore any contract with them is NOT legal and binding, and your bank manager is just being obstructive. Read the Sticky thread about dealing with illegal lenders, and take the info to your bank manager.

Second, even if they are storefront (most of which are legal) or licensed online lenders, I'm PRETTY sure that they are not legally allowed to only accept payment via ACH. (Hopefully, someone in the know will come along here and back me up on that.)
It is your right, under federal law, to revoke authorization for ACH debits. You need to do so in writing to EACH of these companies, if you haven't already. If you have, take copies of these letters to your bank manager.

If, after having the addition information (illegal lenders, ACH auth revocations sent, etc), he STILL refuses to put your account on a credit-only or deposit-only status to stop the hemorrhage, go up the ladder. Contact the bank at a corperate level, armed with all the information you have about the legal status of the PDLs, ACH revocations, Federal laws permitting you to revoke authorization, etc. And keep going up the ladder, you will eventually reach someone who knows you are right and will help you.

lrhall41

Submitted by msmotr on Thu, 04/08/2010 - 17:23

( Posts: 61 | Credits: )