Legal Question in Credit and Debt Law in Georgia

Sure. Just close the account. But be aware that the next step likely wilkl be that they will sue you, and then do a garnishment. So unless you plan to file bankruptcy, that's a bad plan.

I agree with Attorney Ashman about closing your bank account. You need to tell your bank - in writing to not honor the drafts. However the payday lending place has your account information and will use the ACH method to avoid any written stop payment orders and the only way to avoid this is to COMPLETELY close down your bank account and open a new account. The writing to your bank is important as you want to put the bank on notice that they are not to pay the vulture payday lender any money and you don't want the bank "honoring" this even if you have no money in the account and then charging you.

I have to disagree with the rest of Attorney Ashman's advice. Payday loans are circumscribed - they are illegal in NC and unless they meet certain requirements they are illegal in GA too. Here is a link to a brief article I wrote about payday lending:

http://www.rachelhunterlaw.com/articles/article_9_Pay_DAY_Lending.html

The article discusses GA, NC and PA payday loans. It would be a crime for the lender to sue in GA if the loan was not in compliance with GA law. Most payday lenders do not comply with the law and interest rates set forth in the law because it is not profitable. But if the lender does not comply, they cannot sue as they would expose themselves to criminal prosecution. Its like a drug dealer calling the police and telling them he was robbed and hd his stash of drugs stolen by another drug dealer. Not going to happen.

I cannot advise about VA law because I am not licensed there but you are in GA now. You only get sued where you live (there are some exceptions). I have serious doubts that the payday lender will sue you in VA, although the loans seem to be legal there if they comply with the state requirements. Here is a link (I make no representations as to whether the information is correct or not - if you have questions, I would advise you to talk to a VA lawyer (re-post your question to a VA-licensed attorney here at Law Guru) or contact the VA Department of Banking.

http://www.paydayloaninfo.org/state-information/54

Even if you were sued in VA, the lender would then have to transfer the judgment to GA in order to collect. This means more lawyers and expenses. There is a process that the lender would have to go through to register it and even then, I question whether it could be enforced given that GA does not honor these kinds of loans. I just don't think its all that likely.

Was this loan by Western Sky/Cash Call/Delbert by any chance? If so there are numerous attorney generals and the PA department of banking going after these losers. The CFPB has also gone after Cash Call. You can also try filing a complaint with them.

Only in the rare case that the lender sues you and recovers a judgment that is entered/registered in GA against you could your pay be garnished.

So bottom line - my advice is to completely close your bank account. If you have paid back the principal and whatever interest is allowed under VA aw then there is nothing more that you would owe. And even if you haven't, I would save the money and take my chances that you will not be sued.