What should I do if I just received a call stating that if I didn’t pay my payday loans back, I will criminally be prosecuted?

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What should I do if I just received a call stating that if I didn’t pay my payday loans back, I will criminally be prosecuted?

Are they able to do this? They say I committed fraud. I had few payday loans at the time and was overwhelmed trying to pay them and my bills. My account was overdrawn and the bank eventually closed it.

Asked on January 27, 2015 under Bankruptcy Law, Texas

Answers:

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

Answered 6 years ago | Contributor

Unless you never intended on paying the money back, there has been no fraud committed here. The fact is that you can't be arrested for failure to pay on a debt; it is against the law for a creditor to make threats of criminal action for failure to repay a loan. Additionally, you have already paid some of what you borrowed, so can evidence good faith on your part.

That having been said, they can take action against you in civil court; they can see you for the amount currently owed, plus interest.


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