Can I be arrested for non-payment of a payday loan?

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Can I be arrested for non-payment of a payday loan?

I received a call from an attorney’s office threatening me with a warrant for arrest if I did not pay him $498.

Asked on July 17, 2011 under Bankruptcy Law, North Carolina

Answers:

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

Answered 9 years ago | Contributor

A 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; debtor's prison is long gone.  Owing a debt is a civil not criminal matter. The only exception would be if fraud was committed in obtaining the money.  So, for example, if you borrowed money and had no intention of paying it back. That would be a crime. Absent that, neither a debt collector or creditor may threaten you with criminal charges.  If they do you could actually bring suit against them.  Further, they cannot harass or otherwise intimidate you. It's the law; it's called the "Fair Debt Collections Practices Act" (FDCPA). 

Note:  This doesn't mean that you don't owe the money.  In setting up a re-payment plan just be careful in just what information that you give them, especially  with respect to any banking information.


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