Signed a contract for an installment payday loan. Payments every 2 weeks until Feb 09. (yes a lot of interest but I was desperate at the time). Contract states very clearly first payment due 10/13. If payment is not made within 10 days of due date (10/13) then a late fee of $10 or 5% of payment amount will be added. Okay I can live with this. I did have the money to make the payment within the 10 days but not on the actual day of 10/13. (I got paid on the 20th).
On the 18th they deducted the full amount of the loan and interest from my bank account. When I called to inquire why they stated that after 5 days you are considered in default and they collect the money owed. I told them that the contract clearly stated I had 10 days and they said they weren't aware the contract said that but their computers only allow for 5 days. No where in the contract does it say they only have to give 5 days.
1. How can they NOT know what their own contract says?
2. Isn't this considered breech of contract legally on their part?
3. Do I have to pay extra charges to them because of the mess this has caused? (overdrawn bank account, bank charges for overdrawn account, their fee for NSF etc)
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