Legal Question in Credit and Debt Law in Texas

I took out a payday loan about 9 months ago. I had been paying the min payment up until about 4 months ago. the total loan was about $1000 and I was paying $250/bi wkly for just the intrest nothing went to the principle. when i lost my job i was unable to pay it and defulted on the loan. they were aware of the situation. i just currently started a job and got my first pay check today. I hadn't been working from the last time i paid on the loan until now. I went to cash my very first check in four months. to find out that the check cashing store i went to was affiliated with the loan company. They refused to give me the $ from my check. They said I owe them $1200. my check was for $800. I spoke to several different people just trying to get them to let me have even $50 of my check to get by until next week so I wouldn't lose my job and then make arrangements to pay off the remaining balance. They wouldn't work with me and even told me that if i had my employer stop payment on my payroll check i would go to jail. Is any of this legal?


Asked on 11/24/09, 10:51 pm

1 Answer from Attorneys
Mark Dunn Mark D. Dunn

You need to talk to a lawyer, and have him write these folks a very strongly-worded letter. There seem to be about eight different violations of the Deceptive Trade Practices Act, to start with.

Then go talk to your boss and/or your payroll department, and tell them what happened. Ask them to help you get out from under these people's thumbs.

And stop cashing your paycheck; go to a bank and set up a checking account.

And don't pay these vultures another dime, ever.

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Answered on 12/02/09, 2:18 pm


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