Pday loan, PDC-can they be considered as writing bad checks?

Hi---You can go back through the forum 'dealing with collection agencies' and read through it. There was a big debate going back and forth about this very subject. I think the final outcome was no, its not and no, they can't. I will try to find the link to that thread and come back and post it for you. shirley

You should probably call your local prosecuting attorney and ask, since state laws vary so widely. But my understanding is generally no, because they know you don't have the funds when they accept the check.

Hi,

PDC can never be considered as bad checks and they cannot bring legal action against you for PDC.

You can find info about that on the ftc website and they can't prosecute for a post dated check. This is considered bad debt. I was told that by an attorney in Memphis.

I was reading some of my state laws regarding this and it seems that it can be considered a bad check if it's written the same day you go into a store front lender. I would check with your department of financial institutions or consumer protection office for sure. I think the only place that would try to take it to this level would be a store front lender, someone in your neighborhood. Online payday lenders threaten but very rarely act on anything because most don't have the proper license to even do business.

The best way to recover the money and fees on a bad check is the restitution program. Creditors often enter bad checks in the restitution program to get the money back. But PDCs are not at all eligible to be included in restitution program because as Brat says, these are bad checks from the very beginning and the creditor accepted it to the best of his knowledge.

See this thread for more info-

http://www.debtconsolidationcare.com/forums/check-restitution.html

You all have been very helpful. I am glad that I found you!

This is an excert of Texas Law on Check Fraud - Exempt issues.

The following types of checks are not prosecutable under either Section 31.06 or 32.41:
1) Post-dated or hold checks;
2) Checks held for over thirty days;
3) Most out of state checks;
4) Stop payment checks, unless given for cash or other no controversy items or the bank will confirm in writing that there were insufficient funds on deposit with the bank on the date the check was written;
5) Checks for which the maker's account has been garnished or otherwise frozen;
Checks involved with involuntary bankruptcy.

NOTE: There may be an exception to the garnished or otherwise frozen account or to the involuntary bankruptcy if the complainant can establish that the maker of the check knew of this when writing the check.

Can a payday loan online be considered check fraud in pa? I am paying it but they are threatening me with jail if I don't pay this website?

This is a very common threat from the online payday industry. Post dated checks are considered bad debt. You can't go to jail. Now if you walked into a payday loan place and wrote a check for the date of the loan, then they can charge you with check fraud.

I had to close my bank account. One of the companies I was dealing with "no longer does" payday loans and was going to take the full amount owed out of my account. I had to shut it down to prevent this from happening.

[quote=CONSUMER FRAUD]I am paying it but they are threatening me with jail if I don't pay this website?
[/quote]
Why are they threatening you? You are paying it right? Then they don't have any point to harass you this way! Which company are you dealing with?

No payday loans cannot be considered as bad checks or check fraud and you cannot go to jail. Thats it.

My brother had a few payday loans out that he couldn't pay. They were brought to the DA's office and combined to an amount over 1500.00. He was charged with theft over 1500.00 and a warrant was put out for his arrest. My mom just posted bail for him Monday. They were store front lenders. He is in Texas. Can they do that?

Yes, store front lenders can. Most store front lenders are within the law of the state they operate in and can get judgements on deafult loans.

I think it depend upon what state you are in, you need to read your pdl laws for TX. I know that in OH storefront lenders can not seek criminal prosecution for a check that "bounces" , the only remedy available to the company here is a civil judgement.

I went to Ivan Smith in Dec. to look at bedroom furniture for my kids but was not intending on buying anything. I was looking so when I got my income tax I could come and pay cash for it. The sales man insisted that I use a new service called cross check in which I wrote posted dated checks that totalled the amount of my purchase that were to be debited on four different dates. Well the last check didnt clear bc I was injured on the job. I work for the US Postal Service and had no intentions of that last check bouncing. I had to use my income tax to pay my bills until my workers comp started coming. Im still off work getting a fraction of my original pay and on a fixed income. Cross Check is threatening to press theft charges on me with the local DA's ofc. I live in Texas...can they do this?