What to do if I took out a payday loan 3 years ago an defaulted on it?

Get Legal Help Today

 Secured with SHA-256 Encryption

What to do if I took out a payday loan 3 years ago an defaulted on it?

I wasn’t able to pay the fees associated with it anymore and it was putting my bank further into the red. So, my bank account was closed. Now 3 years later, I get a call from a processor, he says that he’s not a collection agency. Tells me I have 1 day to pay $500 by money gram or I will be turned over to a paralegal that will file my case as check fraud. Do I pay now? Do I have any options?

Asked on December 12, 2012 under Bankruptcy Law, California

Answers:

S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Don't pay the $500.  This sounds like a scam.

Until you are served with a lawsuit, you have nothing to be concerned about.  If you are served with a summons and complaint (the complaint is the lawsuit attached to the summons), you will have an opportunity to file a response (answer to the complaint).  The complaint and the answer are only the beginning steps in litigation.  Until a case proceeds through litigation and there is a judgment against you, do not worry about it.  If a judgment is obtained against you which you cannot pay, you can file bankruptcy at that time.  If this were a reputable outfit, the individual who called would not have the phony title of "processor", and the lawsuit would be filed by a reputable law firm; not some paralegal.  Moneygrams are notorious for being scams.


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.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption