Is it a felony to close your bank account if you have a payday loan?

If you decide to get out of debt and the best way is to not have a checking account but still owe debit payday loans and want to close the checking account wil this cause a felony to be issued by the payday loan company even thow you do plan on settling the owed money to the payday loan

Is it a felony to close your bank account if you have a payday loan?

No way.

a) It's too hard to prove that you intended to defraud the Payday institution.

b) A state/ district attorney's office would have to formally charge you with a crime, which they would never do. They're already bogged down with gang bangers and drug dealers to deal with some slimy Payday lender.

c) But, you need to fully expect that Payday lender to come after with guns ablaze. These institutions use border-line illegal collection techniques to frighten you into paying your debt. They might even sue you in a civil court. Once sued, you'll have a judgment passed against you which then enables that company to garnish your wages until the debt is satisfied.

I fully recommend taking control of the situation, discussing payment options with the lender, and sticking by those arrangements. The lender might try and bully you into paying more, but you HAVE to take control and TELL them how much you are able to pay. If you stick to that payment plan, they can't do anything against you.

Good luck. I've been in those same shoes. 6 years ago, I had a Payday loan. I was harassed over the phone, threatened, scared, depressed and angry. All for what? $200 bucks and 545% APR? Take control and NEVER do it again.

P.S. Shame on the Payday loan industry for taking advantage of the financially untrained.

Is it a felony to close your bank account if you have a payday loan?

what will happen is that the charge will be returned to the loan company and they may present it again. this will cause you to receive fees from the payday loan company. They will then contact you to pay them if you do then you are fine. If you don't then they can turn it in to the city or state and you can be charged with theft or theft by check if you had written th e payday loan co a check.

I don't get why you can't keep the acct open. If you are closing it to avoid paying automatic withdrawls you are just causing more trouble for yourself. If you are closing it to avoid bouncing checks and overdrawing then why don't you just cut up your debit card and get rid of checks but keep your $ in the acct.