What to do ifI have been unable to pay back payday loan?

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What to do ifI have been unable to pay back payday loan?

Took put a payday loan 2 1/2 months ago; meant to be paid back 2 weeks later. The paycheck was not for enough and have not been able to pay back yet (now unemployed). They said they were going to put out an arrest warrant for me in 2 days if I don’t pay. Now they want $1500 instead of the original amount of $500 because of lawyer fees. I still can’t pay. Is there anything I can do?

Asked on September 16, 2011 under Criminal Law, Florida

Answers:

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

Answered 10 years ago | Contributor

You can try to work out payment arrangements with them. If you can't, they can go to court and obtain a judgement against you, At that point they can try to garnish any non-exempt assets. And when you do go back to work, this could include a portion of your wages.

However, unless you committed some type of fraud in obtaining the loan (e.g. you never had any intention of paying it back), then you cannot charged with a criminal offense. People do not go to jail simply because they lost their job and cannot pay back a debt.

The fact is 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). 


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