does a non-payment of a short-term loan = bank fraud

No. In order to prove bank fraud they would have to prove you took the loan out with intent to defraud the lender (i.e you were planning to close the account when you took out the loan in the first place). You called this guy LT Blue?? Is he trying to tell you hes a cop or a detective? Thats a violation of SOOO many laws that bank fraud is the least of his worries. Impersonating a law enforcement officer is a violation of State and Federal laws. and Law Enforcement officers don't collect on past due debts.

Per Federal law you cannot be arrested or jailed for owing a debt.

Closing a bank account is not defined as check fraud under the laws. There can be many reasons for closing the account. The CAs use their own ways of doing collections and this is one of their common forms. Now, strike back and ask them to prove their legitimate collections. All CAs must validate the debt in writing. Has the company sent you anything in the mail?

Looks like you are dealing with a company called PRELITIGATIONS. If you do a search you will find a ton of information on them and their illegal tactics. They do collections for several Payday loan company's. I know this is Prelitigations calling because I to had to deal with this company and a lady named L T called me as well.

OMG. I'm sitting here with my mouth open because two weeks ago, I sent payment in to these people for the exact same reason as above: that I had committed bank fraud by closing my bank account and unless I acted quickly, action would be taken against me.

It all started the previous evening when a woman by the name of LT Fox had left me a menacing voice mail informing me to contact her office ASAP. She ended the call w/a rather sarcastic "Good Luck."

The next day, a man by the name of Russell Crenshaw had taken my call. I was threatened that someone would be coming by my place of employment and or home to place me under custody at 10:00 am the next day unless I paid them $1000. NOt ever having dealt w/this before, I quickly and frantically arranged to purchase a Money Gram and it was sent it him before 10AM.

I'm feeling utterly used and disgusted right now, I can't believe this. But I am somewhat relieved to know that I'm not alone.

It's unfortuante that some people gave into them. I must admit they had me scared as well with all the threats of arrest and threats of making a scene at my job. I immediatly called my father who used to own and collection agency and I also called my credit counselor at the time. They both calmed me down and gave me advice on how to approach the situation. That is why they do what they do, scare people so bad that the first instinct is to send the money without any further questions. I had a run in with them for about three days straight and I could tell I was talking to the same guy but he kept giving me fake names. He would use this L.T. person to ask for me and then he would get on the phone and proceed with harrassment. I also heard the Good Luck at the end of every conversation. They even called my cell phone and would say something stupid like "Hey, how ya doin," then hang up. These people need to be stopped. Anybody who receives a call from them should report it to the Florida Attorney Generals and the FTC.

that's disgusting. if scaring people is their intent, then they do a damn good job. My instincts that day was that I had never in my life heard of them coming to hunt you down physically, but I was scared and I did what I thought was best for me at the time. After I gave them my intent to follow thru w/the money gram, they promised me a letter of exoneration, which would detail the transaction and the debt paid. To this day, I have not received it. I'm sick just thinking that I could have gone another route.

They also tried to get me to send 699.99 within 24 hours or else.... They finally gave me the original creditors name and my loan was only for 250 with a 75 fee. Where did the other 374 come from, now I know a little bit was from a returned check fee but not 374.00 worth. I asked several times for them to send me verification and they haven't till this day. I told the original creditor that if they want any money from me that their collection agency would have to stop harrassing me and send me some proof and that was 4 weeks ago. Even though you paid them money, you can still report them to the Attorney general and you can mention that you haven't received anything back.

thank you yondela, I will be reporting them. Definitely.

Lynn,

Also report them them to the Federal Trade Commission, which you can do online. The more complaints they receive about this company, the more likely the will do an investigation down the road. Please don't beat yourself up because someone scared you into paying the debt like that. I was in the pdl cycle for a couple of years and it was so hard to dig myself out of it. This forum was a godsend last winter when I had reached the end of my rope. I realized there was a way out and so many people have helped me on this journey. I have even been able to return the favor to others on this forum which makes this whole "bad" thing worth it for me. I had one say I was going to get arrested at work but luckily I knew better from others on the forums. I would definately get confirmation of your payment in full as well. It's sad that companies have to act this way to begin with. :roll:

I had a payday loan with Zurich Ventures, closed my one checking account but gave them the numbers for my new account. They turned me over to collections. The collection company took $$ from my account before I could set up a payment plan. When I called to set up the plan, the woman sent me an email with the $$ amounts and dates. I happened to call her the day before a payment was to come out, and the $$ amount had doubled that was to come out the next day. I told them I was stopping payment on that amount and I didn't want her to contact me anymore. Yesterday, she calls me back and asks me what is happening with my account. I said I didn't want to deal with her and she put someone else on the phone. He said he would take it down to my original loan amount and one extension, $130 if I paid by the 30th. If I didn't pay by then, I was going to get turned over for check fraud. I told him I would put them in with my debt management company and he said they wouldn't work with them. Can he turn me over for check fraud?

EJT, don't get scared. They are trying to intimidate and get the money from you. You can't be charged for a check fraud because they can't prove it. You intend to make payments but the CA is doing unauthorized debits in your accounts. It will sound good if you close your account and stop them from making any more debits. Don't give out your new bank information. Make payment arrangements in other ways or try to deal with the original company.

I had an experience last year with a cash till payday loan. I was being charged every payday for different amounts even after the debt was paid. The bank would not close the account after going through the normal channels did not work (dealing with creditor/stop payments) because "even after the account is closed, a forced payment such as EFT would still hit the account, causing me to owe the money"... Somehow, magically, the debits to my account stopped. The amounts after it was paid in full were in amounts such as $29 and $45, which really made no sense. I never recovered the overpayments and have the concern that one day I may see surprise payments debited again.

Close the account, notify the bank that these were unauthorized charges and have them refund the charges. Also contact your local police and file a theft report.

If the bank refuses to do nything contact the state bank regulator and they will get something done.

Their mistakes could be in your favor, and you could wind up helping others facing your dilema & be awarded money for their violations.

I'm not sue happy, but I ran into a similar problem on a payday loan. Due to job loss I could no longer pay according to the agreement. They seemed understanding, but after paying $200 on a $500 loan in about 3-4 months, they turned it over to their lawyer for collection, who refused to give me credit on the $200 I paid. I called around for help & was given the number for Eddleman Combs (I live in Chicago area), a consumer rights attorney. They laughed at all the FDCA violations, including the accusation of fruad, in the lawyer's collection letter. They started a class action suit & won me $500.

After coming here I've learned a lot on how bad these collection companies treat people. When I see something that I think is a violation now I fight back. Eddleman Combs won me $2,000 on another case where a collection agency wrote to tell me a judgement had been awarded to them, but they are willing to work - all I had to do was pay 1/2 the amount awarded in 2 months. There was no judgement - it was a scare tactict.

I was contacted today by someone who identified themselves as from "Law Office". They left the name Knight Law Firm with my employer. When I called back I was told that I had an outstanding unpaid Payday Loan and that I was a criminal and was going to be arrested. I then called Knight Law Firm who never heard of me or the compant listed under the phone number on the internet. "Xspedius Management Co., Florida". Can I be arrested for bank fraud for non-payment of this? I did close the account, but I was under impression that the loan had been repaid prior to closing it. This is the first I have heard from anyone regarding this since mid-2007.

I am the owner of The Knight Law Firm in Coral Gables/Miami, Florida. My firm does NOT do consumer debt collection work. As tag551 correctly states, anyone who claims to be with my firm you for debt collection purposes is lying. Please contact me with any information you have.
-Jefferson Knight/ deleted...pm