I took out a paycheck loan to be drawn against my checking account, but shortly thereafter, I stopped working and the only income I had was social security and a small pension which were directly deposited. I told the bank that my income was exempt due to the fact that I am on SS and a pension and receive a total of $1818 a month. The bank still allowed the creditor to try and draw against my account, so I stopped the direct deposit and went to a different bank. Now I owe the bank more charges and interest than the loan was. I don't think they are aware of the new law that went into effect in January of 2009. What would you suggest I do? I live in MA, but I know the law is the same here.
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The law you refer to was passed in New York, but we are not aware of any similar law in Massachusetts. In any event, the New York law would not provide protection from this sort of creditor, to whom you gave permission at the time you took the loan to draft your account. You need to contact a legal aid office for advice on your predicament.
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The law you refer to was passed in New York, but we are not aware of any similar law in Massachusetts. In any event, the New York law would not provide protection from this sort of creditor, to whom you gave permission at the time you took the loan to draft your account. You need to contact a legal aid office for advice on your predicament.
