Do I have to close my checking account?

From my experience with the PDLs, I closed my account because most of them refused to revoke the ACH authorizations and would keep debiting from my account. You may ask your bank to put stop payments on the ACH if you have their BANK ID (for example NORTHWAY DEBIT) but I have to warn you the stop payment fees really add up. So it is much better to close an account and get in touch with the PDLs to do payment arrangements. NEVER GIVE THEM YOUR NEW BANK ACCOUNT! Pay them using money orders (always keep records of those), money gram, western union, and/or certified checks.

Robbie, I encourage you to register here and you will be able to get more information on the T&C.

I agree. Close your bank account and open a new one. This gives you the power and really helps get everything under control.

You will also like to read this discussion about closing a checking account. I was in a similar situation where fees were getting higher enough. Some of my lenders were quite easier to work with. They offered me an arrangement and I didn't need to close my checking account. But the others were tough to deal with. I had to close my checking account before they hit it.

So, you will have to approach your lenders and know their future move.

It's not necessary, but it would definitely make it much easier for you. For one thing, it puts YOU back in control of your finances, rather than the PDL companies controlling your finances. Many won't stop attempting to debit accts, and some are even sneaky enough to change the debit amount so they get through a stop payment.

Good luck!

I had a payday loan and the payment came from and went to Northway. I m trying to do another one but I can't seem to find the website. Can you help?

Darnetta,

Do you have an account with Cash Transfer Centers ( cashtransfercenters.com) If so, are you trying to do another payment or take out a new loan?

I have to say that closing your checking account and re-opening a new one is the best way to go. If you have direct deposit, it is in your best interest to do it sooner than later, because it usually takes one pay cycle for your company to have it directed to a new account. Also, getting a new one open quickly will cause you to avoid the fees that will be assessed to your account and enable you to work quickly with the PDL companies to get this resolved on your terms. No matter what you do...do not give them you new account number...money orders or cashier's checks with confirmations are the best way to go...unless you decide to do debt consolidation, which I am attempting to do now.

Robbie, I would suggest closing it as well. I REALLY didn't want to do this, I have had the same chking acct since 1992. I called & explained my situation w/ the mgr & they suggested I close it. As you will read in other forums the PDL's will try to debit for different amts so it is way too hard to try to do stop pymts on them. I did FEEL a lot better after I did it....I KNEW there was no way they could get back in.

I too closed my checking account (very hard after 28 years), but it was wonderful for my peace of mind. I knew they couldn't get at my money.

yes, closing my checking account was the best thing I could have done at the time I enrolled with T&C. The PDL's would have continued to hit that closed account, and I would have been charged. Just make sure you close it at least a week before the payments are going to hit the account, because the biggest problem I had there was that there wasn't enough time to stop the debits from coming through, and I had to file "revoked authorization" claims on all of them...and while it worked, and I got my money back, it was such a hassle, I had to take off work, etc...

so, yes, I would strongly suggest closing the account.

First of all, let me say I agree with all the people who say this is a great website! I have been paying off two payday loans and almost have them wrapped up. However, my third payday loan I am afraid to close my account on. When I signed the agreement with them, it specifically stated if a payment was returned to them for any reason, they could call my employer. I have been afraid to risk it. The company is Route 66 Funding. Anyone have any advice?

Thanks!

jt9284---In this same forum there is a whole thread on Route 66 Funding. I haven't checked it out so I don't know if it will help you, but check it out.

jt9284

Read this thread for information on Route 66 Funding. It will be good if you can talk to your lending company and explain your financial problem. Either way, if you do not close your account, they might hit it and you will fall short of funds. Talk to them before this kind of thing happens and work out arrangements. You might find things under control.

okay but if you fax and adk them to pay the loan don't they just take payment and thats it?