My husband and I defaulted on a payday loan and now the company called us and told us that it was bank fraud. does anyone know if they are just throwing out "big words" at me or are they serious. How can it be bank fraud..... I thought first they had to try and collect the debt and maybe garnish wages, ect.
2006-12-05 04:51:20 · 8 answers · asked by samantha 4 in Business & Finance ➔ Credit
Check on the laws in your area. In ours, it is bank fraud and you could be liable for 3 times the face value of the original check and/or jailed for a period not to exceed 6 months.
2006-12-05 04:54:34 · answer #1 · answered by eskie lover 7 · 0⤊ 0⤋
If you communicate with them....they will work with you...just ignoring it won't make it go away....why don't you go in and re-loan? If they won't reloan to you because you defaulted....find another advance company....communication is the key.
The easiest way I have found to make them go away is to reloan up to the 6 times they allow you (every 2 weeks)...reducing the loan amount each time you go....It's a vicious circle...once you get in...it's really hard to get out.
To answer your question...it is bank fraud. you wrote and dated a check that there are no funds to cover. However, they are trying to scare you into paying it off. They will actually have to go through small claims court to collect the debt. Your bank won't even charge you an NSF charge..because the loan advance place just calls the band every day to see if there are enough funds to cover the check. If at any given time you have enough money in there, they will immediately drive to a branch of you financial institution and cash the check for cash. If you have other checks outstanding on your bank account...that's when you get in really deep with NSF charges.
2006-12-05 05:08:21 · answer #2 · answered by Shelly B 5 · 0⤊ 0⤋
It would be considered bank fraud if you gave them a personal check but didn't have the funds to clear the check.
I would try to settle this out of court, because i they file Small Claims against you they will win and in addition to your balance and accrued interest you will be respon. for court costs and all fees associated with taking you to court. If you don't pay on your Judgment they can and will file a garnishment and collect that way. It's never pretty.
2006-12-05 04:58:36 · answer #3 · answered by Jen G 3 · 0⤊ 0⤋
They cannot legally file fraud charges or insufficient fund charges on a personal check they accepted that was post dated, since they knew the funds were not in your account when they made the loan. They stand to lose, not you. It's a risk they take. That's why they charge such high interest. Relax.
Its all smoke and mirrors.
Tell them to go climb a flag pole.
.
2006-12-05 05:01:36 · answer #4 · answered by Anonymous · 1⤊ 0⤋
It is bank fraud.... How they do things (without credit checks & things) is you are putting up money in the bank (at a certian date) as collateral (plus interest) so in essence it is a secured loan. If you do not have the money in the bank on the set day for them to take, it is bank fraud cuz you involved the bank when you took the loan with a post dated check(ing account).
2006-12-05 04:56:45 · answer #5 · answered by Anonymous · 1⤊ 0⤋
Yes it is. But depending on where you are at what state there are different laws. I was told that as long as you are repaying they can't do anything. Seek some free legal aid. But you should be able to send in payments of $5.00 and be ok.
2006-12-05 05:01:55 · answer #6 · answered by micaso1971 5 · 0⤊ 0⤋
Stay away from "payday loans" they are not there to help you, they are there to make money, and they do so at other peoples expense.
2006-12-05 05:13:36 · answer #7 · answered by Anonymous · 0⤊ 1⤋
Unfortunately, if you read the fine print, the sorry rip-off b******s can do just about anything they want. Good luck.
2006-12-05 04:54:58 · answer #8 · answered by luckyaz128 6 · 0⤊ 0⤋
Read the fine print on your agreement for payback terms. It will tell you there.
2006-12-05 05:37:40 · answer #9 · answered by Big Bear 7 · 0⤊ 1⤋