smooth4bob asked:
I am trying to find out what is the consequences, if my account was closed of me writing a check to a payday loan company, if it goes to court for civil judgement.
I am trying to find out what is the consequences, if my account was closed of me writing a check to a payday loan company, if it goes to court for civil judgement.
Tags: Consequences, Judgement, Payday Loan Company, Writing A Check
August 3rd, 2008 at 9:11 pm
Oh - it might…..
Or - if you broke a law, you could be arrested for fraud or theft.
Or - they could just report you to the credit companies and ruin your credit score.
August 6th, 2008 at 8:32 am
Ouch.
Can you pay it back? I’m not a lawyer, but if you knew the account was closed, there’s the possibility that criminal fraud could be charged. Knowingly passing bad checks is a crime in the states where I’ve lived.
Even if done unknowingly, the consequences of bouncing a check on a closed account can be pretty serious.
First, there’s the immediate problem. A court could order you to repay, and garnish wages in the worst case.
It could also have long-term consequences. There’s an outfit called “ChexSystems” that does the same thing for checking accounts that credit bureaus do for borrowing. Just like credit bureaus can prevent you from getting loans if you foul up with a loan, ChexSystems can prevent you from getting a checking account if you foul up with checks.
Take care of this. It’s serious.
August 7th, 2008 at 8:58 am
Civil judgment? Depends on the amount It is all and out fraud, knowingly writing a check on a closed account. Could be facing 1 to 5 in the pen most likely a record of theft and possible parole plus penalties. Good luck in your future as you will have a record, and one of theft at that. Yep future job situation does not look so good right now
August 10th, 2008 at 12:13 pm
I’m sorry to hear about your problem. We all have financial difficulties at times, but keep your head up!
The consequences may depend on a few different things.
Not every Payday Loan company pursues its bad checks the same way. Some companies will just burn your phone up for a few weeks until they give up on you, while others will pursue legal action against you.
Depending on where the payday loan company is located, they may initiate a lawsuit against you in small claims court, or they might turn your check over to the District Attorney in your county. Some D.A.’s will not accept checks on a closed account from a Payday Loan company, some do.
If the Payday Loan company sues you, and gets a judgment, they can garnish your paycheck if you are employed. If the company has already sued you and obtained a judgment against you, you are pretty much limited as to your options. If you are not employed there is not much the company can do except wait until you get a job and garnish your paycheck.
The best thing to do in your situation is to contact the Payday Loan company and try to work out some type of payment arrangement with them unless there is already a judgment against you. Some states have laws that require the Payday Loan company to give you a payment option to take care of your bad check.
I hope this helps you out.