Bad Check Charges

Which payday lender are you dealing with? Is it a internet pdl? If yes, then check whether the company is licensed in your state. In case of unlicensed ones, you're only obligated to pay their principal amount.

i am sure someone will be here with laws for your state. there is a sticky up here that goes into detail with check fraud concerning store fronts/internet loans. i am pretty sure it is storefronts that you would have to worry about.

Orgegon.. though not sure how old these laws are... most will not prosecute.. it would only be a civil case (judgment for money) Most stores give up the right to prosecute when they take the check. I'd contact Or and Wa DFI to be absolutely sure though. Are you dealing with collection agencies or store front personnel, or Customer service?

Legal Status: Legal

Citation:
54 Or. Rev. Stat. Ann. ???? 725.600 et seq.

Loan Terms:
Maximum Loan Amount: Not Specified
Loan Term: Min. 31 days
Maximum Finance Rate and Fees: 36% apr interest, $10/$100 fee up to $30
Finance Charge for 14-day $100 loan: $13 for 31 day loan
APR for 14-day $100 loan: 156% APR for 31 day loan

Debt Limits:
Maximum Number of Outstanding Loans at One Time: One
Rollovers Permitted: Two (renewals)
Cooling-off Period: 7 days after prior loan expires
Repayment Plan:

Collection Limits:
Collection Fees: One $20 NSF fee + additional bank charges
Criminal Action: Not Specified

Where to Complain, Get Information:
Regulator: Oregon Department of Consumer & Business Services
Address: Division of Finance & Corporate Securities, 350 Winter St. NE, Rm. 410 Salem OR 97301
Phone: (503) 378-4140
Fax: (503) 947-7862
Regulatory Contact: Charles Donald,, Supervising Examiner, Non-depository Programs
Regulator Website
http://www.oregondfcs.org/

Washington.. looks like criminal action is prohibited

Legal Status: Legal (Lender must have a small loan endorsement to their check casher license in order to make payday loans)

Citation:
Wash. Rev. Code ???? 31.45.010 et seq.

Loan Terms:
Maximum Loan Amount: $700
Loan Term: Max: 45 days
Maximum Finance Rate and Fees: 15%: first $500; 10%: remaining portion of the loan in excess of $500 up to the $700 maximum
Finance Charge for 14-day $100 loan: $15
apr for 14-day $100 loan: 390%

Debt Limits:
Maximum Number of Outstanding Loans at One Time: A company cannot hold a check or checks in an aggregate face amount of more than $700 plus allowable fees from any one borrower at any one time.
Rollovers Permitted: None (cannot repay loan with proceeds of another)
Cooling-off Period:
Repayment Plan: A company and a borrower may voluntarily enter a payment plan at any time. A borrower, however, has a right to convert a small loan to a statutory payment plan after four successive loans and prior to default on the last loan.

Collection Limits:
Collection Fees: $25 NSF fee (one time per instrument); collection costs (excluding attorney's fees, interest and damages)
Criminal Action: Prohibited

Where to Complain, Get Information:
Regulator: Washington Department of Financial Institutions
Address: Division of Consumer Services, PO Box 41200 Olympia WA 98504
Phone: (360) 902-8700
Fax: (360) 725-7827
Regulatory Contact: Chuck Cross,, Director of Consumer Services

Hi autumnx,

No, they cannot prosecute you for a bad check for closing your account. Caveat: unless it can be proven that you closed your account specifically in order to avoid paying (i.e. intent to defraud, which must be proved in court - which is difficult).

The FDCPA specifically excludes postdated checks presented in connection with a payday loan from the definition of "bad check".

Hope this helps.

chrys

So far I have not defaulted on anything yet. I will as of Friday and next Friday. This Friday will be Oregon lenders and I've already contacted them. They said once it defaults I can set up payment arrangements with the store.
Next week the Washington accounts will default and although I'm sure they will set up payment arrangements I think it will take alot of effort to get the arrangements that I can live with.

Thank you for the information Chrys.

This forum has really helped me with my decision and information on what steps I need to take to get these accounts under control.

Yeah, the storefronts are much easier to deal with. It is good that you told them first, that is always the best way.

Good luck with them and please keep up updated.

chrys