Cash advance collections

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omonk

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My wife took out a cash advance several months ago. Since then her bank account had to be closed negating the check that was originally written for that cash advance. She contacted the Cash advance people, as well as faxing them a letter explaining the situation and that she does intent do settle her debt with them, but she cannot afford to now, and would like to set up some kind of payment plan. It's been a week and she has not been contacted about setting up such a plan.

However a few days ago she went into an amscott to get a money order to pay her rent. (Amscott is the institution that issued the cash advance.) They asked her for her ID and saw a record of her dept so they siezed the amount owed to them right there on the spot without her permission. They gave her a money order for the difference, leaving her 500 dollars or so short of her rent payment. Now her rent is late and is facing eviction. Was it legal for Amscott to take the money as they did? Is there anything she can do?
 
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