Consumer Blog

Jay Wollmann says:

June 8, 2007 1:32 pm

These types of loans are ridiculous bad for you anyway, borrow money from a friend or a relative, it will be much better in the end!

Jay Wollmann

rosa says:

June 11, 2007 11:14 pm

I work at payroll advance and who will collect on these checks if patrons know that they are getting loans like at the banks or like credit card companys.

Are these checks not considered bad? I pay bills too!

and whose to say they can't bounce to these places!!!!

Travis says:

June 12, 2007 9:59 am

In response to Rosa:



Presumably, every company that's in the business of extending credit (including payday loan operators) has a system for handling collections and defaults.

Donna says:

June 25, 2007 9:26 pm

In response to Travis, even though a person cannot be prosecuted for a "bad" check to a payday loan company, the check can be sent to the prosecuting attorney. Apparently there is a loophole in the law, that allows the prosecutor to attempt collection for a "processing fee" that has to be paid by the person who wrote the check. The Phelps County Prosecutors office routinely sends out demands for payment of "bad" checks written to payday loan companies and returned NSF. These letters state that you have a specific amount of time to pay or a criminal charge will be filed against you, knowing that the person who wrote the check is not guilty of passing a "bad" check under Missouri law. When questioned about this, Gina of the Phelps county Prosecutors office replied, that they do this as a "service" to local businesses, even though they know that a crime was not committed and they cannot prosecute. It's nice to know that our tax payer dollars are being spent to aid legalized loan sharks.

Lynn says:

June 28, 2007 3:36 pm

Hi, Donna and Travis. Donna, I like the comment about "legalized loan sharks." We've gotten into trouble with these stupid things! NEVER EVER AGAIN! I was having medical issues, lost work and decided we had to let the loans default in order to pay our other necessary bills (housing, etc.). One guy said that the little county up here will prosecute .. "the court's on his side." I tried to debate as I am a studying paralegal and I called the Div. of Finance to ask questions. This guy finally let us set up arrangements. Fortunately, we are finally getting out of this mess, but unfortunately, they've found I have cancer so it's going to take longer than anticipated. I'm really worried about this one guy in particular. My spouse has decided we should file a complaint against him as he's done a lot of things he shouldn't over the YEARS he's been making money on us ... we go in and sign for each other, we only pay interest ... just lots of different things. I did discuss this with the guy at Div. of Finance and he took some info on him. Maybe it will put a stop to it in the future. I understand even these companies have to make a living but at what cost?? It's plain ridiculous. I know next I will "suck it up" and go to my Dad for help before I borrow one of these!

Chris says:

July 9, 2007 6:42 pm

Attempting to secure a loan with a PDL company should never be any one person's last resort. It does become a vicious cycle in order to repay and the grantors are aware of this. They, of course, want you and need you to come back; these companies are not trying to assist the consumer through a rough spot, but exploiting the consumer to gain incredible profit margins. These companies, in general, do not acknowledge proper business ethics and will undermine state laws and sometimes federal laws provided by the Fair Debt Collection Act to intimidate you. Remember, you have rights and you should always exercise those rights provided by law.



If you are being harassed by one of these predatory lenders, and you have defaulted by an NSF draft in the state of Missouri and are being threatened with criminal prosecution, do yourself a huge favor. Know the law pertaining to Missouri Statute: 570.125 RS MO. After studying this, call your creditor with a recording device and state they are being recorded before discussing your account. If they refuse a discussion, take notes and keep the recording. If they do speak, continue the conversation and explain how you can make payment arrangements.

Marsha says:

July 10, 2007 5:34 pm

I have 5 payday loans that I received by going on the internet. Now I am unable to pay them back the way they would like me to. I have contacted them and asked if we could set up a payment plan of some sort. The answer is always no. Also I had to close my checking account because I was having money taken out for things I had never bought or heard of. So now I will not give my checking account number to anyone. But in the mean time what do I do about these payday loans I owe on? What are my legal rights? They call my work numerous times.

Travis says:

July 25, 2007 9:17 am

For Marsha: see answer in this blog post.

Patricia says:

August 5, 2007 1:12 pm

I am in real estate ind. which is suffering badly now. I had to take a $500 payday loan to last until a pending transaction funded the transacation fell through and I could not pay the interest on the paydday loan. I called to make arrangements the Mgr said we must deposit the check, they did and it was NSF. I went into make payment on the check they said we added daily interest since two weeks before the check was submitted so now there are 22 days of interest at $250. I could not pay it so they said we must max out your loan and you must make bi-weekly payments on $875 dollars. I made a $100 payment. Later that day Mgr called me back and said you can't make payments on $875 you must come and and get this current which means another $250 in interest and $25 NSF fee. She said if I didn't the owner would send to their attorney. I thought the law said when the check was presented the daily interest stopped. She said no it continues daily until you are current. So everyday since they are adding daily interest. There is no hope that I can pay daily interest and ever pay off the loan. Are they operating within the law to add daily interest after the check has been presented? I am unable to pay any other creditors due to paying this interest. Now facing debt management program or BK due to this mess. 8/5/07

Craig says:

October 11, 2007 1:12 pm

I work at a family owned Payday Advance store in Missouri. We got into this business with the genuine honest intention of helping people in our area where banks would not. While I think the interest rates are really high, we aren't even breaking even just because of the rate of defaults by people who know they can't actually get in trouble for stealing this money from us. There are so many people who know the law, and will falsify applications, take the money, and disappear. I would love to see some reform in the law, especially for a much lower interest rate (less than half of current rates), but ALSO more strict laws for repayment of that debt (prosecution if no repayment attempt is made), in addition to stricter auditing of payday advance stores. I think the good honest payday lenders (like my business) would be able to help the community where Banks refuse (loans smaller than $2000, check cashing from other banks), but it would also drive out those bad companies who are only there to make a small fortune. Banks aren't any better, either; a lot of times I see them charge 3 different kinds of overdraft fees, upwards of $400 a month on some of our customers (usually for $5 purchases, they get charged a $17 overdraft fee, a $6 daily negative balance fee, and a $15 NSF fee). And Patricia, my company gladly places our customers on a payment plan. The problem is, we try to offer it, but many refuse to make any payments at all.

Yvonne says:

October 16, 2007 7:31 pm

Payday loans should be outlawed! Shall I explain on Sept 12,2007 my son had a auto accident and during the cleaning out of his truck his father and I found out that he had seven payday loans out and I(his Mother) started calling all of the leandors on Sept 15 asking questions and making arrangement to help our son pay them off,some were more than willing to work with us and others sent the checks thru to his bank after being told that his checking account was also NSF but they seemed not to care so now we have letters from the Prosecuting Attonery stating we have to pay for these within a x amount of days.Also the law states that there a no bad checks enless the account is closed by the person(s)before the payday loan is paid. Well what happens when the bank closes the account due to NSF and trying to help us from accuring more overdraft fees, Who is lieable then? Also thought that all loans couldn't exceed more that 3/4 of your monthly income? Well! one of my son exceeded his monthly income because he became unemployed on Sept 5,2007 due to someone promising him a better paying job that didn't happen.Also you would think that the leandors would do a employment check,Well I am the person that they would have had to contact to get a employment reference from and only one company inquired.These are companied that are mandated by the same laws as our Missouri Banks so what does that say about our banks and the goverment,I have e-mail Gov.Matt Blunt to try to get help on changing the laws and or outlawing payday loans altogethed.

Sam says:

October 18, 2007 6:52 pm

I am a single mom and live from week to week, I have 4 online payday loans that I want to pay back but cant just yet, I keep getting calls at work from two of them and they want me to send money grams or by credit card , I told them that I could send money orders instead, they said I could not do that, please help me with some information,I want to make good and have told them this,they wont listen to me..

Travis says:

October 22, 2007 10:37 am

To Sam:

You can file a consumer complaint with us. While there may be no fraud involved, companies often will negotiate with consumers who file complaints with the Attorney General.

mi says:

November 3, 2007 8:59 pm

I have a question about a payday situation. I have several payday loans that I cannot afford to pay. On August 24, 2007 I renewed all of my payday loans post dating checks for September 7, 2007. Meanwhile, my mother removed my name from her checking account, that was used to borrow the money from the payday companies. The account stayed opened she still had to pay for the returned checks. The bank finally closed the account on October 25, 2007. Two of the payday loans sent the checks to The Prosecuting attorney's office (bad check unit). I recieved a 1st and 2nd notice stating that I can be prosecuted with a feloney for bad check and fraud. I never tried to stop payment and the account was opened for over a month after the default on the loans. I called the bad check unit, a woman answered the phone. I told the woman that I was in the process of filing chapter 7 and waiting on a case number. The replied by telling me that my lawyer or myself needed to send proof that I did not write the checks on a closed account and that I need to send them a list of all my debts. I know that those people are trying violate my rights! What should I do?

MARLENE says:

December 10, 2007 11:30 am

How in the world does anybody ever break this cycle without filing bankruptcy? This is horrible. I'm sick about this trap I'm in.

Debbie says:

January 6, 2008 11:55 am

I realize that my own poor judgement has gotten me onto this hideous merry-go-round---I don't know how to stop it. My life has been ruined by these loans--I have even thought of suicide as a solution, but I know that is not the way. I am only mentioning this as a means to convey the sense of desperation.

Danna says:

February 6, 2008 10:45 am

So, right now my husband has two payday loans prior to our marriage. They're at the prosecuting attorney right now. They sent a leter. I called them, and the lady said it needed paid within 3 days. Can they issue the wrrant for him. The letter sttes if not paid in 10 days one will be issued. We're in Missouri. I told him to file bankrupsty w/ me. As I had planned on it anyway.

Travis says:

February 8, 2008 10:12 am

To Danna:

This does not make sense. You don't get prosecuted for owing someone money - that's a civil matter between you and the lender. So there may be more to the story than I'm aware of.

Regardless, I would HIGHLY discourage you from bankruptcy at this point. It is a devastating move for your financial future.

Instead, I would find a good credit counselor so that you can explore all the options. You can find one by contacting the National Foundation for Credit Counseling. There are a lot of counseling scams out there. You are much more likely to find a legitimate counselor through the NFCC.

Angela says:

March 10, 2008 6:04 pm

I owe two old payday loans one is local have not spoken to them in a while i'm sure they will be back soon. Manager last informed me to write her a new check on a closed account. However, the one I owe online contacted me recently and I had informed them I considered it paid since they caused me over $700. in overdraft fees with my bank. I thought there was a law in place that says they cannot continue to attempt drafts from the same check. I guess our laws don't stand for much since the only ones who try to obey them are the ones who end up loseing in the end. What can I do?

Travis says:

March 11, 2008 2:37 pm

To Angela:

You can file a consumer complaint with our office.

mandee says:

March 14, 2008 6:25 pm

I live in Idaho I have 6 pay day loans (bad choices in desparate situations).Now they have all been returned.What do I do when they wont work out payment arrangements?
Is there a credit counseling service that halps with these kinds of situations? I dont know where to turn or who to ask for help can anyone help?

Travis says:

March 20, 2008 3:48 pm

To mandee:

See responses to Sam and Angela above.

Catina says:

April 21, 2008 11:31 pm

About two years ago I took out a payday loan with a company in New orleans. Today someone saying they were an investigator contacted my mom and told her that i was being issued a warrant because of this. In the past I was trying to contact them after Katrina but never received a response because they were out of business.They refused the money i owe them and they want me to pay 1,010.00 and all i owe is 345.00. what do i do?

Travis says:

April 23, 2008 10:07 am

To Catina:

I'm not sure who regulates payday lenders in Louisiana, but I would start with the state Attorney General.

Heather says:

June 5, 2008 10:11 pm

my husband and i got in trouble and took out payday loans we ended up with 4 total that we eventually had to stop paying on because after nearly a year we were not getting anywhere with them. so we quit paying now im getting calls threatening to take us to court and they tell me that we could be charged with check fraud and because it was a promissory not it has to be paid that even bankruptcy of any type would not stop it. is this true what do i do?

Travis says:

June 9, 2008 9:33 am

To Heather:

As it says in the original blog post above, the writer of a payday loan check can't be charged with passing a bad check. The only exception is if you stop payment on the check or shut down your bank account.

david says:

July 8, 2008 12:11 am

my wife has 2 outstanding payday loans that we had to stop paying on due to bank carges and other finical problems we eventually closed the account before the loans came due.we,ve had loans with these companies and paid them off before but can,t now can we be prosecuted for theese 2 outstanding loans and what can we do?

Travis says:

July 8, 2008 10:50 am

To David:

See response to Sam above.

sadie says:

July 16, 2008 5:36 am

I have alot of payday loans I am in the process of paying off a lot do not have phone numbers or addresses how can i get these?

Travis says:

July 16, 2008 4:21 pm

To Sadie:

The Missouri Division of Finance should be able to give you a list of all licensed payday lenders in Missouri.

Jake says:

August 21, 2008 1:31 pm

I have 5 payloans and do plan on paying them off. I just can't as or right now. What should I do?

Travis says:

August 21, 2008 3:11 pm

To Jake:

If you intend to pay them off, you should meet with your lender and come up with a plan, such as a payment schedule. Most lenders would much rather work out a plan with you than take other action like a lawsuit or collections.

Carol says:

September 30, 2008 9:36 am

I've been in financial trouble for a while. I recently took out 2 payday loans to pay bills. They're due & I can't pay them. I had every intention of paying them when I took them out, but I can't right now. My bank account is in the negative so the checks will be returned. I realize now I will have to declare bankruptcy. What can happen? Can I be arrested? I didn't intend for this to happen!

Travis says:

September 30, 2008 3:34 pm

To Carol Gnuse:

As the blog post says, these checks aren't considered bad checks under the law, meaning you can't be charged with a crime. The only exceptions, as explained in this post, are if you close the account or stop payment on the check.

Jennifer says:

October 1, 2008 10:11 am

I have five loans myself and have gotten myself into a mess as well to the point that I can't pay them anymore. I called each one and spoke to the managers and they were very understanding and willing to help me work something out. They let me make arrangements over a few paydays. It has been a nightmare, but there is a way out.

Renee says:

October 16, 2008 9:14 am

I helped my ex fiance' take out a $100 payday loan back in March 2007. I had a active checking account, he didn't so they just let my ex use my checking account but used his job info. Basically I had to put my name on the application. Dumb? VERY. We broke up a couple weeks later and he didn't pay the loan back. My bank account went negative and I didn't have any money, as I became a single mother of a 3 month old babygirl. Now a year later, they are calling me saying I owe like $450 and I could get charged with fraud and asked if the cops have been out to my house yet. I explained that last year when I received the calls from the payday loan company about how it wasnt just all of my fault, I found out my ex told told them when they called that he didn't have to pay it since it was basically all in my name. I told the payday loan company this and they tried to work with me, but once again the money wasn't there. I think my checking account closed due to a negative unpayed balance that my ex also helped his self with. I don't know what to do, I don't have a job at the moment, i'm going to school and I can't afford a lawyer. I don't know if this was considered a bad check since my checking account is now closed because of a unpaid balance, and that also is now in collections. I need help! I've never been in ANY trouble.

Travis says:

October 16, 2008 11:35 am

To Renee:

You may need a lawyer if you're charged with writing a bad check. That is technically possible since the account has been closed. Before it comes to that, you could try talking to the payday lender and let them know clearly that you are not trying to pull a fast one. Most companies would rather work with you than prosecute. The last thing you want is for them to think you're avoiding them or that you did this on purpose.

Ruthie says:

November 17, 2008 5:44 pm

I am in Missouri and my pdl just told me that the owner was sending it to the prosecuting attorney. I just read somewhere that,that is illegal for them to threaten me with prosecution. Does anyone know?

Travis says:

November 18, 2008 4:09 pm

To Ruthie:

I don't know about threatening to prosecute, but as the above blog post says, you will not be prosecuted for passing a bad check simply for owing money on a payday loan. That is a civil matter between you and the lender.

Jason says:

December 1, 2008 5:31 pm

i have a question got a call from a law firm in kc saying i need to pay a debt made to a payday loan place (quik cash) by dec 5th otherwise they are gonna prosecute me for a criminal offense.. check was for $512 it was a POST Dated check... i wanna work with them to get this payed but they said they need $100 by the 5th to get a payment plan going.. i offered $50 its all i can come up with and they refused.... what can i do? the loan will be a year old on the 5th of dec. i called quik cash and they wont accept payment cuz they said they sold it to a third party?? my checking account is still open and i didnt cancel the check..... so is there any way possible they can get me criminaly or is it a civil matter??? please help .. got an application on file for the missouri dept of corrections i dont need this....

Travis says:

December 2, 2008 9:39 am

To Jason:

The payday loan store probably turned the debt over to the law firm - that's why payment would need to be made directly to the firm.

And no, you can't be charged criminally because of debt. Missouri law allows prosecution on a payday loan check only if you closed your account or stopped payment on your check.

Lisa says:

December 4, 2008 12:53 pm

Hello. I was relieved to get this info as I am in "over my head" as well and was terrified that I was going to jail. My question is: What about auto title loans from payday loan places. My car is old and currently dead (needs new alternator). It is only "worth" maybe $700. 1) Does this law affect these? and 2) Do you think they would actually go to the time and trouble and expense to repo it? I cannot afford an attorney. I am disabled and living on SSD of $540 and $93 SSI. Thank you for any advice you can give me sir. PS I voted for you wholeheartedly as I think you are doing a great job!! :0)

Travis says:

December 5, 2008 10:51 am

To Lisa:

Yes, same way with title loans - you can not go to jail just because you owe someone money. That's not a crime. This blog post explains more about that.

As for the likelihood of repo in your case, I don't know.

TRACY says:

December 20, 2008 9:29 pm

CAN YOU BE PROSECUTED FOR BAD CHECKS IF YOU OWE A PAYDAY LOAN? I NEVER WROTE A POSTED CHECK THEY JUST HAD ME SIGN A DOCUMENT ALLOWING THEM TO DEBIT MY PAYMENT ON MY PAYDAY.

Travis says:

December 22, 2008 9:24 am

To Tracy:

See my response to Jason, from December 2, above.