LeAnna wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.
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“Dear Steve,
I was looking up background on Langhorne Debt Solutions and saw Lacy’s question. I have a big debt with online payday loans and have contracted with Langhorne Debt Solutions. They seem legit. Bankruptcy is not an option for me. They instructed me to close my account and reopen a new one, which I did. How will this affect me? They never mentioned any potential criminal charges.
If bankruptcy is not an option, how will it affect me if I’ve already contracted with Langhorne Debt Solutions?
LeAnna”
The Answer:
Dear LeAnna,
If you wrote a check to the payday loan people, you should really consult an attorney in your state for specific legal advice.
Since Langhorne Debt Solutions is located in Delaware, I am assuming you are as well. Here is what DE says about writing bad checks.
“Amount due, costs of suit, protest fees.” and as far as criminal penalties, “Misdemeanor – up to 2 years in jail, $1,000 fine, or both. Person who issued check must make restitution to person to whom check was issued. Felony – up to seven years and such fine as court may order.” Source: National Check Fraud Center
“A person is guilty of issuing a bad check knowing that it will not be honored by the drawee. For the purpose of this section, as well in any presecution for theft committed by means of a bad check, it is prima facie evidence of knowledge that the check (other than a postdated check) would not be honored that:
- The issuer had no account with the drawee at the time the check as issued; or
- Payment was refused by the drawee upon presentation becuase the issuer had insufficient funds or credit, and the issuer failed to make good within 10 days after receiving notice of that refusal.”
Source – Delaware Court
One of the requirements for prosecution under the Delaware Attorney General check enforcement program is if the check is written on a closed account. Source – State of Delaware Department of Justice
If you don’t want to see an attorney, which you should, then simply ask Landghorne Debt Solutions to guarantee in writing that closing your bank account to prevent the cashing of the check you issued to the payday lender will not result in any civil or criminal penalties. If they won’t do that, then let me know.
