Legal Question in Administrative Law in California

I Closed my Bank Account, Owe Payday Loan

I Owe a payday loan of $315, I closed my Bank Account due to overdraft fees from a unauthrized mechant. Now I have recieved a letter from a Collection Lawyer,

I dont have any money, I'm on a fixed income of SSI.

Can the Payday Loan Company Sue me?


Asked on 3/12/08, 10:27 pm

3 Answers from Attorneys
Terry A. Nelson Nelson & Lawless

Re: I Closed my Bank Account, Owe Payday Loan

Of course. If you owe money, they can sue if you don't pay.

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Answered on 3/13/08, 1:50 pm
George Shers Law Offices of Georges H. Shers

Re: I Closed my Bank Account, Owe Payday Loan

Why not? You had a contract with them to pay them a certain amount of money that you have not paid, right? So they have a valid claim against you.

I would contact the collections attorney, by e-mail and not voice mail, and find out what proof he wants of your being broke and now unable to pay back Pay Day. Do not admit that you had no money when you took the loan, as he will then accuse you of fraud, misrepresentation.

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Answered on 3/13/08, 12:28 am
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: I Closed my Bank Account, Owe Payday Loan

Yes, of course they can sue you...if they didn't have the power to sue, how long do you think they would stay in business? It isn't a charity, and they have effective ways to assure repayment, or everyone would be borrowing and not paying. In fact, if they don't sue you, send me their name and address, I want one of those kind of loans too!

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Answered on 3/13/08, 2:05 am


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