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Check ‘n Go is Taking Advantage of Me and I’m a Struggling Senior

By on July 27, 2016

Question:

Dear Steve,

I am a longtime senior stuck in the predator web of Check n Go. November 2015 I went into pay my $300.00 loan and the clerk offered me a $3000.00 loan and I bit and made the installment loan and I have paid 8 payments of $400.00 (total of $3200.00) and I still owe $2184.44 and when I asked the manager why take interest (289.55)(110.45 to principal)) before even considering what got applied to principal.

That is loan shark and I am 71 yrs old and my health is failing and I have fallen into a hardship and cannot continue to pay or I will be homeless and without medication I only have Social Security for income. The stress is killing me. I was told to close my account of 15years…. What can I do???Please help me. I have no money to get help for me…

Should I close my account?. Can Check ‘n Go levy my Social Security check. I don’t have anything of value…What can they do to me.? Thank You so much for whatever you can consider in this matter..I am a humble senior struggling….Thank You

Beatrice

Answer:

Dear Beatrice,

Bless you for reaching out to me for help.

While there may be some technical issues regarding how payments may have been applied, I don’t think the balance would change dramatically if audited.

If you do not own your own house or have a lot of equity in it, and you don’t have any other big assets a lender could try to get a lien against then it simplifies your choices on what to do.

Based on the fact you are in an impossible position you can afford based on your income, I often prefer for people to close the door on their problem debt using the power of the law through a consumer bankruptcy. Once you file bankruptcy then the lender can no longer attempt to collect from you and the debt is terminated by law.

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However, since you might not be able to afford to file bankruptcy, and I’m assuming you have no big assets to go after, then the least expensive option is to do almost nothing and let them pursue you.

You would certainly need to change your bank account and you can discuss this with your bank to make sure if you stay with them and you open a new account, it would prevent the Check ‘n Go debits from the new account.

Now, what will probably happen is Check ‘n Go will attempt to collect the balance of the loan. Their collectors may call and send letters. They might even sue you and win. But based on what you’ve said, it sounds as if you are what is called “judgment proof.”

That just means you don’t have money sitting around that the creditor could attempt to garnish and levy. Social Security income is protected.

If you can find a local attorney who is licensed in your state who would give you a few minutes to confirm all of this for you, that would give you some peace of mind.

I don’t suggest the “do nothing” approach lightly. But based on the fact you can neither afford the loan and you seem to only have Social Security income, it is unlikely that you are going to find enough money to make the required payments. At some point you’ve got to stop digging yourself deeper in an impossible situation.

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About Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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