Payday Loan Help. Determined Your PDL is Illegal?
So, you’ve determined that your payday loans are illegal. What do you do now?
Your first step is to talk to your bank. Tell the banker you’re revoking ACH authorization for all/any PDLs you have. Tell her you are able to provide her with a copy of your revocation letter if they like. You “want to secure your account before any further activity takes place.” If you’ve overpaid the principal on your loan, request fraud paperwork. Explain that you have overpaid the loan and the PDL lender refuses to stop debiting your bank account. Offer a copy of your research regarding the illegality of your payday loan. (Visit: http://www.paydayloaninfo.org/state-information It’s likely your banker already knows this. You’re probably not the first “pilgrim.”) Tell your banker you’re aware that payday loans are illegal in your state and you need to protect yourself from the illegal lender(s) having further access to your account.
Tell your banker you’d like to keep your business with their bank and ask them to CLOSE the account and open a new one for you. Be sure that the two accounts are not linked in any way. If their policy is that the old account can’t officially close for a certain period of time, have the old account put on “deposit only status” until that time has passed.