Can a payday loan place use a voided check and then call it fraud if you can’t pay?

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Can a payday loan place use a voided check and then call it fraud if you can’t pay?

A place called and said my husband was in trouble for fraud. They said there is a video of him giving a check. The check was a blank check voided also. It was for the files. When we couldn’t pay, we told them in order to make arrangements but they didn’t want to. We got scared an paid the money that was asked. Can we get that money back?

Asked on September 28, 2011 under Bankruptcy Law, Texas

Answers:

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

Answered 10 years ago | Contributor

It really sounds like you and your husband are victims of deceptive collection or lending practices, which are illegal in the State of Texas.  Collectors are not allowed to falsely threaten criminal action.  If your husband gave a voided check, they did not have authority to use it.  If they did use the check for something more than getting routing numbers or as part of the application process, then they would be the ones guilty of fraud or theft.  The second part of your question is whether or not you can get your money back.  If you owed the money, then you will probably have a tough time getting the money back.  However, depending on the how the events you described unfolded, you may be entitled to damages for a deceptive trade practice violation or a violation of either the state or federal debt collection practices acts.  It would at least be worth a consultation with a consumer law attorney to see if a more specific detail of you case would qualify.  At the very least, you should file a complaint with the Texas Attorney General.  They have only complaint forms that are fairly easy to complete. 


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