If you have borrowed a loan, you must pay it back; payday loans are no exception. But, considering the scary side of these loan programs, many times, it is in your best interest to stop payment on a check you have already issued to your payday lender, especially when you know that the check is going to bounce due to non-sufficient fund in your account. Check bouncing can be very harassing and financially damaging for you.
There are plenty of reasons when you must stop a check for payday loan payment to protect your finances from further damage. Similar thing holds true for debit authorization requests also. Many lenders require you to authorize them for ACH debit withdrawals. You may have to revoke such authorization to prevent yourself falling into a deeper financial trouble.
1. Avoid Penalty Charges For Bounced Checks
To start with, when you already know that you do not have sufficient amount of money in your bank account and the checks you have issued to your payday lenders are going to be bounced, it is not wise at all to let that check bouncing happen. It is very important for you to understand that when a check bounces, penalty charges are applied to your debt account by your lenders, and at the same time, even your bank charges a hefty amount of fee. But, when you stop that check in advance, you can easily avoid at least the bank penalty charges.
2. Protect Your Bank Account
Besides that, because of numerous overdrafts that might occur because of frequent check bouncing or bouncing of debit authorization requests, banks may even close your account. Banks often do not even send a notice in advance before closing such accounts. It might come as a shocking surprise for you. Opening a new bank account in such cases is never easy, which will eventually make things more difficult and stressful for you.
3. Protect Your Money
If you have some fund deposited in your bank account, payday lenders can eat them out without giving you any significant relief from the overwhelming debts you owe to them. Even if the fund out there in your account is not sufficient enough to pay off your entire debt, your lender can withdraw that money on the pretext of various collection and penalty charges. Therefore, sometimes, it is wise to stop checks and revoke debit authorizations just to protect your money.
4. Check Bouncing Is A Criminal Offence On Your Part
The worst thing is that when you issue a check to someone or authorize a lender to debit your account for the payments but the check bounces and the debit request is dishonored due to non-sufficient fund, your lenders have the legal right to file a criminal lawsuit against you.
It is very important for you to understand that nonpayment of debt is not a crime and lenders can never file criminal lawsuits against you for that. You can never be sent to jail just because you are unable to make the repayment of certain debts. The worst that can happen to you is that you can go bankrupt, but no criminal charges can ever be placed against you in such cases. But, on the other hand, when the checks you issued bounce or when a debit authorization request that you approve gets dishonored due to any reason, it is often treated as a criminal offence on your part.
Because of all the above reasons, you must stop those checks that you know are going to bounce or revoke such debit authorization requests that you know are going to be dishonored.
