Is it ok to close a checking account if it has ACH debits coming out of it from payday loan coompanies if I can no longer pay? 3 Answers as of July 31, 2011I am in over my head in payday loans and I can no longer afford the amounts coming out every 2 weeks from my checking account. What could happen if I just closed out my bank account? Could they still come after me for the money?
Law Office of John C. Farrell, Jr. | John C. Farrell, Jr.
With respect to you bank account, you certainly have the right to close it at any time. More importantly by doing so will put you in a position where you are not abiding by your side of the agreement with the pay day loan. Although some may say that the pay day loans are suspect you are still liable for paying the money. You certainly could have defenses under contract law and as a consumer to possible lessen the amount you owe but I would suggest speaking to an attorney. One of the best thing to do initially is to try to work out a payment plan with them but be careful because I have found that creditors really do not want to "work things out" especially early on. In other words, your best interest is not not theirs.
Answer Applies to: Massachusetts