Internet payday loan default

In 2006 I was in a financial mess and took a payday loan from the internet. You have to give them your bank account information so they can pull there money back out when you get paid. Well about 2 months after I took this loan, I closed the account as we moved to another county. I am now unemployed (position was cut) and my husbands wages pay our bills with hardly any left over. These people have a collection agency contacting me now in 2008 saying the debt was not paid. The original loan was for $300.00 but they say I owe $1000.00 now. He will only accept a payment arrangement from me if I agree to post date a check which I won't do because I know they will put it through before the date. He says that is the only way I can pay or he will send it to the judge in the county I lived in and I could face being arrested and my bank account being frozen. Can anyone tell me what I should do in this situation as I am now terrified of being arrested or my account being frozen. If they mess with my account and I can't pay my car payment, rent, utilities I will be in a huge mess. Please help.

It is unlikely that you will be arrested under the scenario you describe. Did you by any chance give them notice that your account would be closed? That is the safest bet.

Anyway, these guys try to scare you. They have to hire a lawyer or file a lawsuit and show up where you are for court. Then they have to prove their case. Then they have to win. They they have to file for a garnishment. If you have no wages they can't get your husband's. They also probably cannot get your joint bank account.

[simonmorkel1]

Originally Posted by Unregistered In 2006 I was in a financial mess and took a payday loan from the internet. You have to give them your bank account information so they can pull there money back out when you get paid. Well about 2 months after I took this loan, I closed the account as we moved to another county. I am now unemployed (position was cut) and my husbands wages pay our bills with hardly any left over. These people have a collection agency contacting me now in 2008 saying the debt was not paid. The original loan was for $300.00 but they say I owe $1000.00 now. He will only accept a payment arrangement from me if I agree to post date a check which I won't do because I know they will put it through before the date. He says that is the only way I can pay or he will send it to the judge in the county I lived in and I could face being arrested and my bank account being frozen. Can anyone tell me what I should do in this situation as I am now terrified of being arrested or my account being frozen. If they mess with my account and I can't pay my car payment, rent, utilities I will be in a huge mess. Please help.

Try to negotiate with your Cash Advance loan provider. This is the only way to find the solution. Here is the site www.usapaydayadvance.com -- this may help you to get information.

Yes, I have such a similar problem. Have u heard anything yet on this matter in 2008. Mine just recently happened.