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PayDay Loan and Bankruptcy

Date: Tue, 12/14/2010 - 07:26

Submitted by Krys
on Tue, 12/14/2010 - 07:26

Posts: 4 Credits: [Donate]

Total Replies: 6


My husband and I have come to the grave decision to file for bankruptcy after a long cycle of trying to claw out of debt (due to major job loss). But we have one concern: our payday loans. We have three. Two of the three have given our debit card to other companies (or are moonlighting as other companies) and charging us for things we never signed up for. We were advised to close our account, and deal with them in an alternative way. They will not cooperate by giving us a mailing address or another way to pay them. We are still trying to figure out how to handle that. Our concern is that now that we are going to have to file for bankruptcy, before we have cleared up this issue with the Payday Loan people, we dont want to appear as though we defrauded them by closing our account, because that isn't the case. We are very willing to struggle to pay them, but aren't willing to have them bounce our debit account with fraudulent charges. What do I do?? I'm so frustrated and at my wits end, and am having a really hard time finding some answers. Thanks.


Have you checked to see if the payday loans are legal in your state? If they aren't, then you are only obligated to pay back what you borrowed. If you've been paying them, it's possible that you have already paid back the principal.

We would need to know who the lenders are, amount borrowed, and state in which you reside.

By closing/changing your bank account you are only protecting your money from predators. I don't think the bankruptcy court would argue that point.


lrhall41

Submitted by aubrey on Tue, 12/14/2010 - 07:38

( Posts: 1203 | Credits: )


Thanks. :)

I have looked into the laws in my state (SC) and they are legal, although a few of the aspects of our loan are not. IE, rollovers are not allowed, the interest that they are charging us is much higher than allowed, etc. The loan companies are United Cash Loans and US Fast Cash.

I'm more frustrated with myself (for getting the loans, first of all) because it wasn't until they abused my debit account that I researched them, and learned that we are definately not the only ones dealing with this. It also appears that they are the same company.

It's a relief to think that we probably wouldn't be considered defrauders. We are still working with the 3rd company (an unrelated company, PayDay One) because despite not being linked to any suspect activity in our account, they are willing to work with other methods of payment.


lrhall41

Submitted by Krys on Tue, 12/14/2010 - 07:45

( Posts: 4 | Credits: )