Can they arrest me for default on a payday loan?

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Can they arrest me for default on a payday loan?

I had a person call my daughter today and they left a message on her answering machine saying that I have criminal charges pending and that they need to talk with me. I called them back and I was told by this person that they are filing bad check and fraud charges against me for a payday loan that I thought had been paid already. They want $420 by tomorrow or this will be forewarded to the prosecuter.They have really scared me. Can they do this? I am not a criminal.

Asked on May 31, 2012 under Bankruptcy Law, Missouri

Answers:

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

Answered 11 years ago | Contributor

The fact is that person who has borrowed money cannot be threatened with arrest for non-payment. In this day and age people don't go to jail for owing money; there is no longer any debtor's prison. The only exception would be if fraud was committed in obtaining the money, then that would be a crime. So, for example, if you scammed someone into lending money and you had no intention of repaying. Absent that, neither a debt collector or creditor may threaten you with criminal charges. If they do you could actually sue them. Additionally, they can not harass or otherwise intimidate you. It's the law - the "Fair Debt Collections Practices Act" (FDCPA).

Additionally, according to you, the sum borrowed has been paid back. So either this is some type of scam or there is legitimate confusion on your pay off. When this person calls back you need to speak with them yourself and explain things. If you feel that they are legitimate, then give them proof of your payment (i.e. a cancelled check, etc). If you do not feel comfortable with the person you are speaking to and feel that this is a scam of some sort, then do not offer to give them any of your banking information. If they continue to threaten you, tell themthat you are going to file a complaint against them under the FDCPA and/or tell them you are reporting them to the police. Then hang up.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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