I had a payday loan from a store front lender which I have been paying and renewing for about 6 months, this is just one of my 8 payday loans, the other 7 were online loans. I lost my job and the check I issued to this store front lender bounced due to NSF. When they started collecting I tried to make a payment arrangement in the amount I can afford but they don't want to take my offer and kept calling me and threatening me that they will file a case against me for issuing a bad check. I am willing to pay but only the amount that I can afford. They are forcing me to pay them a much bigger amount and at a one time payment only. What can I do?
1 Answer from Attorneys
This is not the kind of case where you issued a check in the moment knowing that you did not have funds in the account on one hand. Intervening circumstances (loss of job) resulted in you not being able to honor your promise to pay them. Unless they have some evidence that you wrote the check knowing you could not or would not pay in the future, criminally nothing can be done. At this point I would send them a letter with a payment that you can afford explaining the situation and that you fully intend to pay them in the future but are unable to do so. Keep copies of the letters you send and continue making payments as often as you can.
Most of us attorneys HATE to see consumers use pay day loan services because the interest you pay, which is thinly disguised as a "FEE" is outrageous.