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payday loan collections


Expert: John Hall - 6/13/2005


I live in Virginia and obtained a payday loan online from a company in CA. I was unable to repay and was sent to a collection agency in Florida who keeps calling me and saying they will have me arrested for bank fraud if I don't pay in 5 days. Is this something they can do or are they just trying to scare me. They called my work and the girl that answered the phone said they told her they had a warrent for me. Are they telling the truth.


Ms. Reynolds:

Relax - if they had a warrant, they wouldn't be threatening you with it - as a matter of fact, what they are doing is illegal (threatening criminal aciton to collect on a civil debt).

They are simply not telling the truth. Although there are laws that provide that writing a hot check is a crime, you are not in that situation. They took a post dated check and to prove a crime they would have to show that at the time you made the check you knew that it was not going

to be any good. Even in the states that prosecute bad check writers, they would not go after you for a payday loan. What this boils down to is that you took out a loan and didn't pay it back - period.

What do you do to get them to back off? You have a couple of options - One, if you write a ltter to the collection agency and say that you are directing them to not contact you further under the Fair Credit Reporting Act (a federal law), they must cease collection efforts.

You still owe the money, and if you wanted to get rid of that debt and any other unsecured nonpriority debts you might have (credit cards, personal loans, etc.), there is a way you could do that. If you wnated to talk to me further I could call you if you wanted and would not charge you just to talk on the phone. If you want to talk to me on the telephone, send me your telephone number at this email or you could go there and I could give you my number for you to call me.

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Category: Payday loans

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