What to do if I took out a payday loan 5 years ago and the company is now telling me that I can be charged with a felony or misdemeanor for a bad check?

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What to do if I took out a payday loan 5 years ago and the company is now telling me that I can be charged with a felony or misdemeanor for a bad check?

I think I took out a $500 payday loan. What happens if I don’t pay?

Asked on December 28, 2011 under Bankruptcy Law, Arizona

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

You need to speak with your state's consumer protection agency that handles such companies. If this company is not licensed in your state to conduct such activity and it is supposed to be, contact the agency and file a complaint. This has nothing to do with a felony or misdemeanor. The company's employees are trying to scare you and they are violating the Fair Debt Collection Practices Act. Contact your credit reporting agencies (the top three) and request your free report from each (you get one free per year). Look at it and see if this item appears in any way, shape or form on the report. If not, continue to monitor every year. Five years is pretty much past the statute of limitations for any company to attempt to collect. Do not reaffirm the debt because that will cause the statute of limitations to start all over.


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