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Home > Reader Questions > I Closed My Checking Account to Get The Payday Loan Companies to Negotiate With Me. – Michelle

I Closed My Checking Account to Get The Payday Loan Companies to Negotiate With Me. – Michelle

im in a mess with payday loans. i was going to work with progessive, but i read your response and decided not to involve myself with them. of course, it started with one and went from there. i also have had two deposits made to my account that i am positive that i did not apply for, but i cant seem to find info on them to call them and inquiry about the deposits. i have closed my current checking account and hope to negoiate with the payday loan companies when they start calling me.

is this a good idea? to close my existing account and allow the payday loan people to start
calling me and make arrangements with them to pay these off?

Michele

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I Closed My Checking Account to Get The Payday Loan Companies to Negotiate With Me. - Michelle by

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  • Michelle13784

    I believe in some cases they report you to the checks system and might have a hard time opening another account. Hopefully you already have another account open.

  • Kris

    Does this company automatically deduct their payments from your bank account? I ask because I once closed an account with a bank, and it turned out that if you had automatic debits it would re-open the account, which then of course caused an overdraft. You have to make sure that they will not pursue the bank account for money otherwise this won’t relaly help you.

  • Msmina78

    Its so hard to catch up once you start dealing with paying back try your hardest to stay away from places like that

  • RomoD

    If that is what you decide to do, I wish you luck.. Please make sure that the Pay Day Advance place calling to collect your debt is legitimate. I have not taken out any payday advance loans, however have the debt collectors calling and threatening me with jail time for something that I did not do.. Best Wishes.

  • Msullivan

    Well, I might not go so far as to say it was a good idea, but since you’ve already done it, you need to prepare for step 2.

    Your payday lenders may indeed contact you and they may be willing to settle the debt. If so, you need to be prepared to make the payments. One of the tricky parts of debt settlement is making the payments as agreed upon. Few creditors will permit you to miss a payment or even be late with a payment.

    Or, your creditors may just sell your debt to collectors. The collectors may also be willing to settle. Or, the original lenders or collectors may not bother with settling and may immediately seek a judgment. And you may face garnished wages and/or liens. 

    I don’t understand the part about finding info on “them.” Do you mean info on the depositors?If the deposits are no more than $1 they are almost certainly “pings” from someone testing to see if your account is open. Certainly you can’t mean you can’t reach the lenders. You must have had contact information when you borrowed the money. And you can contact them now and start the negotiations. if fact I would strongly recommend that you reach out to them soon and make an offer, explaining that you cannot make the payments in the contract. It may not make a difference but it certainly won’t hurt. 

    Good Luck!

    • MicheleHelper

       Great answer.
      This part is a bit misleading: “Or, the original lenders or collectors may not bother with settling and
      may immediately seek a judgment. And you may face garnished wages and/or
      liens.”

      There’s a whole lot of scare in that comment. Sure…… its accurate, but a whole lot happens before garnishments or liens. There is nothing immediate about it.

      There is also a difference between online payday loans (that are often illegal), and brick and mortar micro loans, and the realistic concerns one may have with not paying them.

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