payday loan collection ability?

Question

I had a previous loan in 2011 with a payday store that I defaulted on. today went to cash a check with them that I got from my 401k and since then have cashed many other checks. today though they took the check and gave me no cash and stated they could because of the debt, I did not endorse the check.  They stated they could and will give me cash left over which is not much. I requested to see the contact i signed with the loan they did not print out the contact though the manager stated this was not listed in the contact a clause that states they can do this. the manger stated there was a sign on the front door that says they can. this being in texas is there such a law says they could? should I contact a attorney to file suit for damages because now have to contact my 401k office and cancel and wait another 2 weeks for a check. the payday loan store refused to hand the check back and I felt bullied.

broberts86 · Answer

Not to be rude, but why would you try to cash a check with a company you owe whether it be 2 or 20 years ago? In any case, its just like a bank if you owe on a checking account they will let you open another (probably) or a savings account but believe me whatever you put in it will go towards your debt as soon as they can snatch it. You dont have any legal recourse he I hate to tell you. In the contract will all never read I am almost positive there is something along the lines of that in there, most financial places do have that clause.

Randy · Answer

So, sounds like you have two choices:

1)  let it go and the debt is paid; or
2)  report it to authorities and then wait to be sued by the loan company for the loan amount plusinterest plus penalty now that you are on their radar.

Frosty · Answer

Took awhile but solved my own question, What they did was illegal and after many many months the bank did refund the money and im not sure what they did after that. They started trying to collect the debt again but the whole point is a private company can not just steal money from you they have to go though a law suit first and win then court will give them ability to collect there debt but looks like they just sold it off to another collection company.

payday loan collection ability?

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