A common question that comes up with respect to "payday" or "cash advance" small lenders is whether the client is legally able to stop payment or close the account related to a check given to such a lender to secure future loan payments. Many clients report that these lenders will call them and tell them that stopping payment on a check or closing an account associated with their small loan is check fraud. This is not the case, and often stopping such a lender from accessing your account is the only realistic way for a client to save the money necessary to pay legal fees for a Chapter 7 bankruptcy case.
So the answer is "YES," you CAN stop payment on a check given to a payday or cash advance lender, or close the account before the lender can take these funds from you. You should not, of course, intentionally take out these loans with absolutely no subjective intent to repay them. This situation, however, often arises rather quickly, as payday loans or cash advance loans are typically the last resort for clients before they finally decide to call a bankruptcy attorney. Once the client realizes they are trapped by the high interest rates and fees connected with these loans, filing a bankruptcy case is often the only realistic way out of them.
If you have questions about payday loans or cash advance loans, and stopping them, CALL ME, I'll BE there for you. -Kevin Ryan (251) 241-5234.