Debt Consolidation Forums Payday Loan help forums

what does this mean in the pdl contract?

member profile picture

There are a few terms in the PDL contracts that I could use some clarification on if anyone can help on it. I'd appreciate it.

First .. "You also authorize us to verify all of the information that you have provided, including past and/or current information. If there is any missing or erroneous information in or with your application regarding your bank, bank routing and transit number, or account number, then you authorize us to verify and correct such information. You acknowledge that the origination of this ACH transaction to your account must comply with the provisions of U.S. law."

Second .. "You cannot be arrested for passing a worthless check in connection with a deferred presentment transaction unless due to a closed account."

I ask for clarification on this because I have closed the checking account that the check was written out for to the loan storefront but have also opened another checking account at the same bank. The new account has a new/different routing # and checking account #. Will non-payment of the PDL and the above terms mean they can access my new checking account information and get the information and be able to present the check or an ACH/electronic transaction on the new account? My bank said that a submission under the old account will not affect the new account. But, wanted to be sure.


Thanks.




I think if your bank stated that this ACH will not affect your new account then you should be fine..(I could be wrong) I just closed my account and opened another, however how are they gone strecth there authorization s to any and all accounts.. It appears as the language in part one only suggest that they will check your past info and current info, at the time of intiation atof the contract, that was current acct ( the account that is closed), not future accts... Any way you only signed authorization to that particular acct.. Now I could see if you had an account A that was dual check and saving and you closed down only checking, I could see them trying to send a ACH to the savings since it was the same acct.. But I think you should be cool.. The Document that you quoted above does not say you authorize us to all future accounts.. At least that is how I understand it, but hey double check with the most competent person at the bank and contact the store front, I believe they send you to collections, I defaulted on a storefront that has me in collections, however have not even been contacted

Sub: #1 posted on Fri, 08/29/2008 - 06:42

Unregistered


I am in alabama if it matters. do i need to let the storefront know i am going to defaujlt or justwait on them to do it or what?

Sub: #2 posted on Fri, 08/29/2008 - 07:33

Unregistered


Alabama allows legal pdl's to press charges if you write a bad check, and under the terms you listed, they can and will press charges if when sending the check in, find out it is drawn on a closed account. It appears that if it came back NSF, they would not press charges.

You're best bet is to contact the company and work with them on setting up appropriate affordable arrangements asap.

Sub: #3 posted on Fri, 08/29/2008 - 07:55

Unregistered


Well, it sounds like this situation is something I need to keep abreast of as well. We are in Alabama and will be defaulting on our loans as of Sept. 3rd. I need to find out what to do .. I posted originally under desperate in alabama or something similar about our car being repo'ed and our $300/mo in fees, etc. Please .. someone answer my thread about what I need to do w/ our PDLs. Do I need to call them and keep them ahead of the game or what? Our checking account that they have on file was closed and our contracts have this same wording!!!!!!!

Sub: #4 posted on Fri, 08/29/2008 - 08:35

Unregistered


The "first" section in the original post above is what our Advance America contracts state here in Alabama. The "second" part is what our little local PDL contract states.

Sub: #5 posted on Fri, 08/29/2008 - 09:22

Unregistered


"You also authorize us to verify all of the information that you have provided, including past and/or current information. If there is any missing or erroneous information in or with your application regarding your bank, bank routing and transit number, or account number, then you authorize us to verify and correct such information. You acknowledge that the origination of this ACH transaction to your account must comply with the provisions of U.S. law."



"You cannot be arrested for passing a worthless check in connection with a deferred presentment transaction unless due to a closed account."

That clause does not give them authorization to get into a new bank account. The info you provided about your bank account was not erroneous, or missing, as it was valid at the time you took out the loan.

Although, some pdl's will have a clause in the contract that in case of default you allow them to debit any account you may be a signer on. If this is the case, then yes, they may find your new account and debit it for the remaining balance.

You really just need to talk to them. Be honest, explain the situation. They will work with you, but not if you ignore them.

This means that in AL you can't be prosecuted for an NSF check, you can only be prosecuted if you close your bank account.

Sub: #6 posted on Fri, 08/29/2008 - 19:28

goudah2424 goudah2424

(Posts: 7936 | Credits: 1224.93)

Attachment
More information
  • Files must be less than 500 MB.
  • Allowed file types: txt pdf jpg jpeg png.

Share post

Page loaded in 0.681 seconds.