That was my first reaction. What about Payday Loan stores. It reminds me of a book by Robert Kiyosaki "Rich Dad Poor Dad.
Our Credit Union did that back in the late 1990's and may still do that today.
How it worked back then, ---------
If one needed say $2,000 cash to buy a used car or big ticket item, Refrigerator for example and did not want to face the huge interest of the credit cards or store credit, one went to the Credit Union and got a short time loan say, 12 months.
The Credit Union would have the Company we worked for deduct the loan from our pay checks every week before we received our salary. Just like they did for medical insurance and taxes.
Benefit was for us we did not have the hassle of repaying each month, taken out weekly, instead of $200.00 a month the payback at loosing $50.00 a week never seeing it in our check was easier for us. Just meant we didn't go out for dinner so often.
Down side for ME was the Credit Union forgot to flag my account to end after the 12 months, I was by then use to having the money taken out and I just most weeks turned my check over to Hubby without even looking at it or the statement that came with it. Hubby handles the money, growing up dirt poor he counted every nickle and dime.
At that time we both worked allot of over time, good size checks, fiances became muddled and Hubby just banked what ever our salary's were UNTIL------Come December 1'st with the Hollidays coming up he began to pay attention to our pay stubs and found out the Credit Union was still, 3 months after the loan payoff taking the $50.00 out of my salary each week.
Where was my $600+ dollars in that time gone??
I went to the Credit Union and had a sit down with the loan officer, Sort of a " This is my money and I want it now"
I began to feel sorry for the woman as she got on her computer and looked at me to inform me there was no such number on the transaction, she had no idea where my money was, or why it was being deducted from my pay check or where it was going.
She found my account had not been flagged to end in August from the loan and just kept rolling along. So where is my money, I need it in cash today, right now.
What a mess, she tells me she cannot do that, she pulls the oldest stunt in the world and begins to cry, To flag my account to stop the deductions from my pay check could take weeks, to return my money could take a month. WTF, she explained to me the paper work involved, insinuated she could get fired, all this at the Holliday season. And some how this was all MY fault for not catching her error sooner. Then the money taken from my paycheck included bank interest for a non existant loan.
What to do, the Union was closing for the night in 10 minutes so I suggested we hit the near by eatery, have supper and drinks, on her tab, and we worked it out over some rum and cokes, how to get my money and save her job.
I do not know if what we did was legal, call it creative financing, we solved the problem and all ended well.
Keep an eye on your banks and Credit Unions, since then a regular bank we have money in called my house to tell my Husband who was at work about some benefits we had not used. I identified myself as his wife over the phone BUT I could have been the cleaning lady or the baysitter for all the caller knew. I asked for the balance of our accounts and without hesitation she gave them to me, kind of scary that this information is give to a complete stranger over the phone.
Then there is the bank in Maine that LOST records of some of their Safety Deposit owners that without a court order or publishing in the papers or any notice to those that banked there there was a problem, broke into the boxes to find identification of who the box was owned by. Mom received a dozen Roses from the bank and an apology for invading her privacy. Damn what will these banks think of next to violate the laws of the land????
