Yes, but the payday loan provider will likely simply take collection action quickly. You either write the lender a personal check or give the lender permission to take money directly from your checking account when you take out a payday loan. You owe, the lender might keep trying to cash the check or withdraw money from the account anyway if you close the checking account to keep the lender from taking what. Which could end up in overdraft charges owed to your bank.
The payday lender might deliver your loan to collections
Then you will have fees that are additional expenses. While it is in collections, the collection agency might try to sue you to get what you owe if you do not pay the debt.
In order to prevent collection actions, try talking to first the supervisor of this shop where you got the pay day loan. See you pay what you owe in an installment plan if they will let. Reveal to the supervisor:
Why you can’t spend anything you owe at the same time.
You will need to repay it over almost a year.
When they consent to allow you to repay your debts in a installment plan, make your repayments on time and energy to avoid collection actions.
You might have a difficult time shutting your account at one bank then attempting to start a merchant account at a unique one. Some banking institutions will likely not start an account that is new your debt another bank. Should this happen, contact DFI, or whatever regulatory agency has jurisdiction throughout the bank that declined you solution. Continue reading