Some short term lenders require that you give them a post dated check when you take out the money. Do you wonder why they would do this?
Consumers report that these high risk lenders may try to deposit post dated checks prematurely or they may try to collect money from your bank account even without your authorization. These tactics, while generally not legal, may be authorized by your loan agreement. You need to read this agreement carefully and you should advise them in writing that they are not allowed to do this.
If you do not understand the ramifications of the agreement, or you do not understand every word in the agreement, talk to someone. It may be an attorney, a family member or a trusted friend. Do not sign these agreements without making sure you completely understand them – and whether the lender can take money directly out of your account without a lawsuit.