Can a payday loan collector have me arrested if I can’t pay?

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Can a payday loan collector have me arrested if I can’t pay?

I took out a payday loan and fell behind on my payments. Now I have had an officer from the collection company telling me he will have the local police in here arrest me for fraud unless I can pay $400 every 2 weeks for 2 months. I really can’t afford that that. I have made the first $350 payment and now I have read on-line that this could be a scam. My next payment is in a week and I really can’t go to jail.

Asked on February 12, 2012 under Bankruptcy Law, South Carolina

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

For the pay day company to threaten you with arrest and jail if you cannot pay what is owed in a timely manner is an unfair debt collection practice and clearly illegal by the pay day company. I suggest that you do your best in making weekly payments on the loan. Make sure you have receipts given to you for each payment made and keep them in a safe place.

If the pay day company continues to threaten you with arrest concerning the debt, I suggest that you consult with a consumer debt collection attorney about your situation.


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