Can I close my accounts before negotiating settlements with several payday loan companies?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Can I close my accounts before negotiating settlements with several payday loan companies?
I have several on-line payday loans and plan to work with a debt reduction company to pay them back. I have been advised to close my accounts before having them workon negotiating a settlement. Is it legal to close your accounts like this? I don’t want any trouble; I just want to get out of this cycle.
Asked on July 15, 2011 under Bankruptcy Law, New York
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
To answer your question, you need to carefully read the written agreement that you may have with the pay day companies that you have been negotiating a settlement with. Assuming there is a written agreement, most likely its terms will control about closing your accounts or not. If there is no written agreement with the pay day loan companies, does closing the accounts simply prevent you from getting future money and nothing else?
If so, then there seems to be no reason why you could not close your accounts if you no longer need them. From what you have written, it does not seem wrong to close the accounts. Read your contract before you do so.
Good luck.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.