Can a pay day loan company hold me responsible for paying a loan I never received?

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Can a pay day loan company hold me responsible for paying a loan I never received?

I got this call at my work from a “collections company” stating that this pay day loan company was going to take me to court if I didn’t pay on this “loan” that I supposedly took out and had deposited in my bank. He wanted to know if I did it deliberately or accidentally. He had an accent, it was kind of hard to understand him. I told him that I wanted to look into things and asked when this “loan” happened and he only knew the time period, not an exact date. Well I looked up the time period and I had no deposits of that amount from a pay day loan. I have the bank statements to prove it.

Asked on March 3, 2011 under Bankruptcy Law, New Mexico

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

1) No, you can't be held responsible for a loan you never took out--though if someone else took it out in your name, you may be forced to prove that it was not you.

2) Note that if the loan company has evidence that you took the loan--e.g. a cashed check, made out to you and apparently endoresed by you--the fact that your bank statements show you did not deposit the money may not be enough; maybe you cashed it, maybe you put it into a different account whose statements you are not providing, etc. You may need additional evidence, if possible.

You are doing the right thing, by demanding that they prove and document the loan and marshalling your own evidence. If they keep pushing and even take you to court, that is where you will ultimately have the opportunity to prove it was not your loan--and, if appropriate, to countersue them (if, for example, they are  obviously trying to commit fraud). Keep doing what you're doing, but if they can produce some evidence that would imply you--or someone in your name--took the loan, or if they take further action, you should get a lawyer to help you.


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