Store Front Lenders

Well---I don't know why you would have to give them your new checking account number if you are paying through T&C. Maybe I didn't understand your question.

Do NOT in any way give them your new acct number!!

If you give them your new account number, they could try to deduct the amount owed through the account by form of electronic check. I strongly recommend that you not give them your new account number.

I will clarify. Since I closed my acct. can they say it was fraud?

Oops that was me I didn't sign in. Well can they come after me since I closed the account. I really closed it because the internet ones were killing up every pay period. Hopefully since I'm working with T&C everything will be cool.

Fraud is defined slightly differently in each state, but generally it requires a knowing attempt to mislead someone. Since you advised them your checking account is closed, it probably isn't fraud. However . . .

1) Some states - usually ones with very strong "bounced check" laws ( like New Jersey or New Mexico) consider checks a payment instrument in and of themselves. In these states, if the account is closed, or even if there are insufficient funds (under certain circumstances) you may face criminal charges when the check bounces.

2) Other states consider checks evidence of intent to pay, rather than payment itself. Therefore, if the check bounces its purely a civil matter for breach of contract. (Other than for provable fraud, of course.)

3) When states enacted the special usury laws necessary to authorize payday lending by local companies, they often included provisions that determine how the check should be treated and what can be done if it bounces. You'll need to consult these.

4) Most storefront lenders' contracts require you to leave a check drawn on an open account as long as the loan remains open. Right now, your checks don't qualify. This could mean you are already in breach and the stores can pursue whatever remedies Ohio allows.

I'd suggest bringing your loan agreements to a local attorney and getting his take. While there is some question whose laws apply to the internet, your storefront loans will almost definitely fall under Ohio law. (Assuming the stores were all in Ohio.) A good local attorney will probably give you a free consultation and advise you about how to handle this without running unnecessary risks.