Can I be criminally prosecuted if I stopped making payments on a payday loan?

Asked on January 31, 2013 under Criminal Law, Texas


M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

No, you cannot. Unless of course there was some form of fraud involved in your obtaining the loan. For example, if you took out the loan with no intention of paying it back. However, if you have made a good faith attempt of repayment, then fraud should not be an issue in your case. Accordingly, while you can be sued for the defaulted loan, you cannot be arrested for it. In other words, this is a civil and not criminal matter.

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