If i close my bank account?

What state are you in?

Did you tell them to NOT call your place of employment? If so, they shouldn't be calling you there anymore. I would suggest closing your account so they don't try and cash the checks and put you in the hole owing the bank money. Unless, you have an OD limit sufficient enough to cover the checks you wrote to the storefront lenders. If that's the case, you could try letting them get their money (they would be out of your hair), and try and work out arrangements with the bank to pay them back so they don't close your account and charge it off. It's really up to you. ultimately, I would talk to the branch manager at your bank. See what your options are with them.

The other problem is...if it is a store front you are going to have to make payment arrangements with them. I think I have read that once you default on a staore front then go to collections..the fee's stop and do not incur additional. Can you tell us which ones they are?..we probably have more info on them here in the forums.

if this is a storefront loan DO NOT close your account yet. What state are you in? This can determine whether to do it or not. It is not always a good idea to close your account, it could cause serious repercussions and possibly criminal charges.

Please listen to Fins advice - You are protected for nsf's, but if you live in a state that allows for prosecution on a closed account, you could make a bad situation much worse by closing the account.

Can't store fronts claim "fraud" if you've closed your account & they try to put the checks through? However, here's another question, if your account is NOT closed, but has a debit block on it, is it the same thing? Because, technically, you didn't put a debit block on it for them specifically - you put a debit block on it because of unauthorized charges. So would that be different? The account is not CLOSED - just has a block on it??? Just curious.

I don't think you can be prosecuted for a block, but I can't honestly answer that one for sure. That's a really good point, and I hope someone comes along who knows the answer, because I'm curious too!

That's an interesting question . . . . . I would think that if you had unauthorized charges on the account you'd be fine. I don't think the law was made to force people that have theft on their account to keep them open. But - That is just my guess. I would think it's possible for the answer to be different for every state.

I was asking because I would think that the account is still technically open. It is an active account. Yes, there is a debit block on it, so the debit/check would be rejected; however, it wouldn't be because the account was closed. Like when you get a check returned and it's stamped "Account Closed". They would just get it returned - maybe like there wasn't enough funds to cover it so the bank rejected it? So I was thinking - man, if you have to put a debit block on for unauthorized charges - what else can you do if a store front turns a check in? I wouldn't THINK that would be fraud because you didn't run out and close your account. It's still open and active. Anyone else have any thoughts regarding this???

Im thinking in regards to the intent of the law - Which is to stop people from taking out payday loans and then making it so that the company cannot collect, an argument could be made for both sides. A lot of states that have laws against closing the account also allow for prosecution of stop payments too. That opens it up a bit and makes prosecution for a block not so far off . . . . .

I think it would also depend on the circumstances surrounding the situation. If there were unauthorized charges like you said in your question, I would think that you wouldn't be prosecuted, because that is not your fault. But if you managed to get a block on your account and there weren't any unauthorized charges, the block was just to keep out the payday loans, then I think an argument could be made that the intent is the same.

I'm going to make some calls today and see if I can get any other opinions . . . . .

Thank you, goudah. Please do post what you find now. Now I'm getting worried. I appreciate any help!

Why would you be worried? Isn't prosecution prhobited in your state?

Actually, yes! It says prohibited. So am I getting all freaked for nothing? LOL! I swear, sometimes I lose my mind with all this stuff!

Yep! You have nothing to worry about! :D This would only apply to states that do allow for prosecution if the account is closed or a stop payment is made.

I have a couple emails in to states that do allow for prosectution, so hopefully I'll get a response back soon enough!

Thanks, goudah! You're always there to straighten me out when I get CONFUSED! I start reading all this stuff and think it pertains to me & actually it's another state! Lord.......

My account was frozen...not closed. My storefronts told me when they got their checks back it said my account had been frozen and we needed to work out a payment arrangement. The checks did not go back to them stamped account closed...only account frozen. It may actually make a difference.

Thank you, guest! It's always nice when people post what they've experienced! I appreciate it! That's also good to know! Thank, again! :D

It may make a difference . . . It could also be a different answer for any state that does allow for prosecution - In one state it could be a crime, and in another it could not be a crime.

The best advice I could give would be if there is ANY question - Call your state's Dept of Banking and ask them what to do. You can also call your states attorney general's office. They are the best ones to advise you on a legal matter such as this. I wouldn't want anyone to take a chance on "my opinion" being right. I research my stuff before I post, but still, when there is even the smallest chance of being arrested - You need to make sure every base is covered before you make a move.

Guest - Are you also from a state that allows for prosecution? That would be good to know, because if you are and the storefronts had no problem with the account being frozen then that is a good sign . . . . .

No, Goodah...I live in TN. I just saw a recent post on one your other threads that shows prosecution isn't an option in TN. So, I would defintely reccomend checking it out first, before taking a risk on getting arrested.

Thanks for asking that, goudah. Good question. And I'm actually anxious for a reply. Hopefully "guest" will respond. Or anyone else with this type of experience??

OH Lord just when I thought there was light at the end of this pit of hell I am in, now I ahve to figure out if closing ot stopping payment on the checks wiht the PDL are prosecutable. Me shattered nerves. I am in Ohio and I would like to know how I google to find the answer. Ia hve been looking and can't find what exactly i am searching for.

redlady, find a post from sassnlucy. She's in your state (I believe). Send her a pm and ask her about store fronts, state laws, and what you can do regarding your bank account. She would be able to help you since she's in your state.

From what i've found it says not specified in regards to criminal prosecution. But let's wait for Sass - she's been there.

Ok, the state laws say "not specified," like goudah said. I watch the court dockets here daily for municipal court and the only action I have seen the storefronts take on people is civil. I have never seen one of the pdl's in my area press criminal charges. I think the most important thing to them is getting their money. What I would do, and this may not be the best advice....just what I would do.......open another acct at a different bank right away, have my direct deposit changed to the new account, give the new number to nobody. Leave as little money as possible in the old acct, even $1. That way you cant be accused of closing your account. If anyone is going to close it, let the bank do it, just in case the storefront does want to come after you but I don't know of any of them coming after someone for a closed account. Then make arrangements with the storefronts for payments that YOU can afford, not what they demand. You are entitled to a repayment plan in Ohio so as long as you try to work out payments and stick to them, there isnt a lot they can do to you.

Okay, I finally got an answer (sort of) back from the question on the first page of this thread asking if it's possible to get into trouble for putting a hard hold on your account, if you state allows for prosecution for a closed account. Now I'm even more confused! I emailed Arkansas, where it says criminal prosecution is prohibited unless it's due to a closed account or stop payment. These are the emails:

Hello,

I have a question - I know that I could potentially be prosecuted for closing my bank account or doing a stop payment on a check used to secure a payday loan, but what about if there is a hard hold or debit block placed on my account? The check would still not go through, but the account would be open. I am having some issues unrelated to the payday loan, and need to do something to fix the account problem, but I do not want to get myself into even more trouble!

Thank you!

Response:

I don't know what the result would be if you placed a "hard hold" or "debit block" on your checking account. However, if your check is securing a deferred presentment you can not be prosecuted for a hot check. If you will let me know the name of the store that is holding your check and the city where it is located I will let you know whether or not the law applies to that transaction

But the law according to paydayloaninfo.org says otherwise . . . . I have a few other emails out so hopefully I get a clearer response then this . . . .

Okay. I don't know if this is even related, but I know where I am, you can not get into trouble regardless since it is an agreement with the store front that they will hold your check - they say this is not considered theft by deception. Is that what this guy's email was referring to? We know it wouldn't be theft by deception, as they have the signs posted in the store fronts. Am I also getting confused? Is that what he thinks you were asking about?

I have no idea - I don't think she answered my question very well at all, and I don't want to reply because I don't have a store and city to respond with, and I don't want to just name one . . . . .

I emailed a few of the states that do allow for prosecution for closed accounts and asked about putting a hard hold on the account. I haven't heard back from any other the other states yet, so I guess I'll just wait til I do . . . . .

I notice a lot of concern about fraud here and think it is time to establish a few things... first of all fraud as defined in criminal terms is not something a PDL can automatically claim... it would take evidence and have to be substantial enough to convince a prosecutor to file charges...

Conversely, fraud from a civil standpoint could be claimed, but the pdl would have to use that as a basis for a lawsuit whick means time and money spent on attorney's.

Fraud would have to be proven and part of that proof would haev to be in intent.. If you close an account inorder to protect your finances, while making an effort to negotiate repayment.. my guess is that it would be hard to convince a judge and/or or jury that you are in fact being fradualent..

Thank you for your post! As you can see, a lot of forum members (including myself) were thrown off by this, seeing as how the pdl's are shouting the word "fraud" at us. You've clarified it well. And, by no means, have I committed fraud, as they state. And, I'm sure the others have not either. Sometimes it nice to have a post spelled out to us so that we can understand it. And you made good points. Thank you. I'm sure many of us will feel more at ease now!