|
 |
Home >> My Bank Said ...
Payday Loan Becomes a Huge Mess
I live in Nevada. I had a loan through a payday loan company. I couldn't repay it and went into the business to discuss a repayment plan. I was quoted a different plan over the phone than what they offered me at the visit. The repayment plan was a higher payment then the actual contract. I told them I couldn't afford that. They told me to stop payments on the checks written to them, and I did. Then they changed the amounts on the checks and the bank cashed them, putting my account $2000 in the red, including NSF fees, because I had been paying bills, making purchases, etc., causing all those to bounce.
The bank refunded the money due to their error, but I had to pay the NSF fees. Then the company did an ACH on my debit that I did not give them permission to do, nor take a copy. The bank will not refund that, stating I had to fill out a Reg E, so they could investigate. I closed the account and opened another. The payday loan company put the check through again and the bank took the money from the new account to pay them again, stating if I owe them money, they have the legal right to take my money out of any account and pay them with it, whether there is a stop payment on the check or the debit card or not. Is this legal?
My rent check bounced because of this and the bank keeps cashing the checks I put a stop payment on every time they change the amount on it. What was the purpose of paying for a stop payment on a check and debit if they just allow them to go through anyway? I'm so in debt now I don't know where to turn. Am i responsible for all this or is this a bank error? I've tried to work out a deal with the payday loan company, but they refuse to budge on the payment, wanting twice the amount they wanted in the original agreement. Any information you could give me would be greatly appreciated.
|
|
 Our recommendation is to consult an attorney. You allege that checks with stop payment orders were altered and then paid, and new accounts were accessed without authorization. This is serious for both the payday lender and your bank. It isn't an issue that can be addressed here.
Published on BankingQuestions.com 8/07/09
|
| |
|
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
