• return2ozma@lemmy.worldOP
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    4 months ago

    You know a lot of those cash advance apps you can just revoke the ACH and delete your card from it. In their terms of service it literally says you are not obligated to pay it back. All those fintech companies.

    • xmunk@sh.itjust.works
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      4 months ago

      I don’t use them myself but I’d imagine most users aren’t aware of that loophole or are worried about their credit score.

      • Tramort@programming.dev
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        4 months ago

        It can’t affect your credit score, because it’s not a loan.

        If it was a loan they would be subject to ursery laws. But they don’t want to be. So you can default without penalty besides being hounded.

      • return2ozma@lemmy.worldOP
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        4 months ago

        Example, this one is for Empower…

        I’m not a lawyer or endorsing any of the activities but it spells it out in their terms you’re not obligated to pay it back.

        • sunzu@kbin.run
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          4 months ago

          Creditor would still seek remedy I would presume

          Fuck that guy tho can’t get blood from a rock folks.

            • sunzu@kbin.run
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              4 months ago

              I checked it out. That’s three years old.

              I don’t think these apps actually are the creditor. They are “platform” they don’t care if yoindont pay. Creditor would.

              It is debt. Defaulting on debt carries risk, people should be aware of it. Strategic default is that just that strategic.

              If you are going to do it, either seek advice proper counsel or do your own research.

              It is a valid tactic but people need to be aware of risks.

              • return2ozma@lemmy.worldOP
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                4 months ago

                I may or may not know somebody that revoked ACH and closed accounts with a few of them a year ago and nothing ever came of it. They’re fintech companies not banks.

                • sunzu@kbin.run
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                  4 months ago

                  My point being is the risk…

                  I am no disputing the anecdote but people also need understand that there is a risk.

                  They will only sue you because they think they can get their money back, suing costs money to start with. There is a break even point or some times just a point.

                  Either way, people should be assessing their financials with proper care. Remember folks that trump used this tactic lol don’t feel guilty about a “leadership” tactic.