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payday loans in NY, closed bank account

Date: Sun, 05/10/2009 - 22:57

Submitted by anonymous
on Sun, 05/10/2009 - 22:57

Posts: 202330 Credits: [Donate]

Total Replies: 3


Hi-- I live in New York and have payday loans from usfastcash, united cash loans, paydaymax, and ezpaydaycash.com. I understand from what I have been reading on this site that payday loans are not legal in NY and that usfastcash and united cash loans are basically illegal everywhere because they aren't licensed.

My bank has just closed my checking account (Wamu, which is in the process of becoming Chase). I have a new account but I am of course not going to give the account info to the payday loan lenders. Wamu/Chase has already restricted account activity-- i.e., they aren't honoring any checks or ACH requests--but they will not be officially closing the account until 5/15, which is the date when the payments for the payday loans are scheduled to come out of my account. Wamu/Chase says that they will mail a check to me for whatever is in my account after they close it on the 15th.

I know that once these lenders try to deduct the payments from my account on 5/15 and they are denied, all hell will break loose and they will hound me on the phone, etc., which is terrifying. I'm also sure that they will keep trying to debit my Wamu/Chase account. Wamu/Chase says that any items presented after 5/15 will be returned as "Account Closed." However, could Wamu/Chase nonetheless charge me NSF fees if the lenders keep trying to debit even after the account is officially closed? And if so is there any way I can stop this?

If anyone has any helpful advice, I would appreciate it. I am feeling a bit overwhelmed! Thank you!


Quote:

I'm also sure that they will keep trying to debit my Wamu/Chase account. Wamu/Chase says that any items presented after 5/15 will be returned as "Account Closed."


This is why you need to send the ACH revocation letter to all the PDL companies after you have secured your account. If they refuse to honor it and continue to debit your account after being notified, then they are in the wrong.


Quote:
However, could Wamu/Chase nonetheless charge me NSF fees if the lenders keep trying to debit even after the account is officially closed? And if so is there any way I can stop this?


Ok once Wamu closed your account that should be the end of any future charges. Please speak with the Branch Manager there and ensure your account is closed with a block or do not re-open flag on it. I do not know the correct terminology for that, but most banks have a freeze or hard block they can place on your account in these cases. It is the same as if your account info was compromised or stolen. So they should be able to do it and work with you.

Also you need to get with the bank and see if they have a "force open" policy that applies to newly closed accounts. I closed my account at my bank and when any charges came through after it was closed they were denied. I was not charged any NSF fees.


lrhall41

Submitted by Cool_Abyss on Mon, 05/11/2009 - 06:55

( Posts: 2936 | Credits: )


With Unitedcashloans, I sent an email stating they were illegal and that I had given them more than doubled the amount borrowed. I demanded they mark my account paid in full cause enough was enough already. They weren't willing to work out payment arrangements even after I was an excellent customer and paid them every paydate. So, I sent ACH revocation letters and gave them to my bank. My account with this payday loan is paid in full cause I didn't back down to their threats and them trying to make more money out of me with "non-sufficient fund" fees. You've come to the right website as there is a wealth of knowledge here.


lrhall41

Submitted by ali333 on Mon, 05/11/2009 - 07:09

( Posts: 21 | Credits: )