I got a payday loan that i was unable to pay off i closed my bank account i thought it was only going to attack my credit now im scared did i commit frfrauhow will i know it turned criminal and how can i start to fix this

I was going through a rough patch
i worked in fast food and was
having to put up 850 a month for
2 months for rent on top of bills
and didnt think i was doing
something criminal after reading
online im scared and am not really
sure if me closing my bank account
turned it into something else and
how would i kbow if it turns
criminal?

Asked on June 24, 2016 under Criminal Law, Texas

Answers:

B.H.F., Member, Texas State Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

It's not a criminal offense.  It will hurt your credit if you don't pay off the loan.  The loan company could sue you for the balance which is due.  However, it's completely a civil matter. 
If your loan had been secured by an asset, (like a car, tractor, or other property), and you hid the asset, then you could be charged with the criminal offense of "hindering a secured creditor."   A bank account is not considered an asset which can be used to secure a loan... so closing it is not considered hiding a secured asset.
To fix this, you do one of two things.  The first is to figure out a way to make payments or pay off the loan completely.  The second, is to have a consumer attorney review the loan documents to make sure they did not take advantage of you when you negotiated the origianl deal.  If the loan was a violation of the deceptive trade practices act in Texas, then you may be able to get out of the note altogether.


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