It’s a sad fact that some creditors seem to think that you run some kind of “checks unlimited” reserve, and expect you to submit as many checks to them as possible every single month. What with bills and groceries, it’s not all that uncommon to find yourself without enough cash to make it through until your next payday — which, if you’re like most working stiffs, may be as much as a week or more away. If you’re low on bank funds or you’re trying real hard not to touch that retirement nest egg, what are your legal options? Your bank’s unlikely to be willing to agree to a $200 loan to tide you over. It’s a big chunk of money or nothing, since after all they need to pay for the bank president’s yacht, and interest on a piddling loan like the one you’re after isn’t even enough to pay for a gallon of diesel.
To the rescue!
Fortunately, a variety of lesser financial institutions have stepped into the gap with small short-term loans to cover just such shortfalls. Admittedly, these “payday loans” also tend to carry high rates — sometimes extremely high, because they’re considered high risk. Here’s how it works. You head to your local check cashier or finance company, which may offer payday loans ranging in size from $100 to $500 (sometimes higher). You write them a check, which will consist of the amount you need plus a fee, and post-date it to just after your next payday. They’ll give you the amount of money the check’s made out for, less the fee, and put the check aside until it’s time to deposit it. Et viol — a flexible loan that takes care of your immediate needs.
Many lenders make use of a service called Teletrack to make sure that you really do have an account with a particular bank, so that they can expect to be paid when they deposit your check. You see, despite all the banking information on your checks, most lenders are well aware of the fact that you can order checks online that have anything printed on them: they’ve been fooled too many times. However, on the other side of the desk there are plenty of people who don’t want some check cashier checking them out with Teletrack, so these days facilities offering “no Teletrack payday loans” are thriving. It’s as easy to find these venders online as it is to find places where you can get cheap mail order checks; and if you prefer to preserve your privacy, no Teletrack lenders just might be the ideal alternative.
Can you say ouch?
I have been working in the payday loan industry in a different state for 4 years, we use TeleTrack all the time. It has nothing to do with your bank account. They track you by your social security number to see if you have inquired with any other payday loan companies who also use TeleTrack. It will show if any of those companies have ran TeleTrack on you, and will also show if you have any NSF checks that have been sent to 3rd party collectors (called charge offs). Generally TeleTrack is used to protect the company and the client. Most companies will not loan to you if you have a charge off. Also if you have to many inquiries on TeleTrack we have to assume you have multiple loans out there. We don’t not want the client to over stretch themselves by having to many loans, so if you have to many inquiries they won’t loan to you unless you can prove those loans have been paid off. This protects the client from over stretching themselves and also protects the company from accepting a client who will more then likely become an NSF customer in the future due to having so many loans out to pay. The best option for anyone who needs a loan who my have a problem with charges offs or to many inquires would be to find a company who doesn’t run it. Don’t be fooled into thinking that online loans won’t, I see inquires from them all the time. The online companies also usually charge a much higher rate because they are out of a different state or country. If you really do need a payday loan, your best bet is to ask your bank first. A lot of banks (at least here) are starting to offer similar loans to clients who have an account with them. I don’t know alot about that service, but I believe you need to have your paychecks direct deposited to use it. Hope this helped.
Is there a list of direct lenders who don’t use teletrack? I have tried to Google some, but inexplicably, I am routed to an affiliate of the lenders. Thanks,
Bri
I WOULD LIKE TO KNOW THE ANSWER TO BRI’s QUESTION:
IS THERE A LIST OF DIRECT payday loan LENDERS WHO DO NOT USE TELETRACK? NOT SEARCH SITES.
what is the answer to Bri’s questions is there a list…
If you get caught up in too many payday loans and can’t pay all of them can they file charges against you for nsf check? I had one call me on a Sunday evening threatening me to pay my loan or they were going to file charges against me and I better have a lawyer.