I took a payday loan out for $250 several months ago . When time came to pay , I didnt have all $300 needed to pay the company so I was put on a payment plan for an additional couple of dollars . They redrafted a new contract for me which outlined the payment installment due dates. When the first installment due date came about, I had the money to pay the installment, but the loan company took out the whole $300 instead. This resulted in negative balance in my account which turned even more red as overdraft fees incurred from every little purchase made during this time. I contacted the company immediately to complain. It took them almost a week to give me back the $300 plus one overdraft fee. I was under the impression that I was to restart the payment plan. Fast-forward to today. Instead of honoring their original payment plan offer, they continued to make several withdraw attempts of $300 which lead to more fees as I never had enough in the account and it was always at random dates. All together I have accumulated close to $400 in misc fees due to their actions.They have put me in collections. Can I sue them?
As many other attorneys have said, you can sue anyone for anything. The real question is whether you have a claim that is worth suing over.
One of the many problem with "payday" loans is that the lender demands access to your bank account. When you sign an authorization for a payment, expect the lender to use that authorization to take money out of your account. Even if you obtained a second written agreement which said that payment of the $300 would be made in multiple payments, the burden would be on you to prove that the second agreement replaced the first agreement, AND that all of the fees you incurred were due to the lender's mistake(s) and not your own mistakes or miscalculations. If you think you have proof of these facts, you may be successful in Small Claims court. You can also talk to a consumer attorney that handles small-dollar-amount loans to see if the lender violated any consumer protection laws.
This answer is for general information purposes only and is not legal advice. No attorney-client relationship is intended or formed by the posting of this answer. Law Office of Lisa J. Espada * San Francisco, CA *
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