1. STOP GETTING PAYDAY LOANS: Do not rollover or “reloan.”
2. CLOSE YOUR BANK ACCOUNT: So the payday lender doesn’t attempt to cash your check or use electronic authorization to debt you account when the payday loan lender realizes you are not going to get another loan or you will miss a payment on your line of credit.
You can open another account at the same bank, but it is safer to go to another bank or credit union.
If you do not close your bank account, the payday lender may make repeated attempts to
debt your account and the bank may charge repeated fees. Other checks you have written
may not be honored, causing other problems.
If the bank closes your account due to repeated overdrafts, you may be placed on a list that will make it hard to get another checking account for five years.
You cannot go to jail for writing a check to the payday lender that bounces. In fact, it is
illegal undermost state laws to threaten to prosecute someone for bouncing a check to a
If you can’t repay the loan when it is due, contact the lender and try to make arrangements
to pay it back in installments. Do not get talked into another loan.
Try to get a one-time loan from another source to repay the loan. For example: your credit union, a friend, family member, your employer, or your church.
The payday lender may sue you. if you don’t repay the loan. Get legal advice about what happens when you are sued or find out if your case may warrant legal action on your part.