What doI do about charges being pressed against me for a payday loanthat Inever took out?

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What doI do about charges being pressed against me for a payday loanthat Inever took out?

I received a phone call today saying that I was getting charges pressed against me for not repaying a payday loan. I asked when this loan was deposited into my account, but all they could tell me is that it was sometime in July; no one could give me an actual date or any other information. I looked through all of my bank statements from the time that I opened this account in 06/10 until current, and have never gotten a such loan deposited into this account. They just keep saying that I can either pay $510 to take care of this or I can go to court.

Asked on January 17, 2011 under Bankruptcy Law, New York

Answers:

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

Answered 13 years ago | Contributor

Since you never took out a loan of this kind and/or received any money, it's either a mistake or a scam.  It's more likely to be the latter given the facts that you have presented - they can't or won't provide any proof of your supposed transaction; a legitimate businesses on the other hand will provide such documentation.  Further, even if they have a valid claim, unless some type of fraud was used in obtaining the money, you cannot be arrested for not repaying a loan.  People do not go to jail for their debts in this country.  A debt collector may not threaten you with the possibility of criminal charges; in fact they can in no way harass or otherwise intimidate you, etc. It's the law and it's called the "Fair Debt Collections Practices Act" (FDCPA). If this law is violated, you could actually end up suing them. 

At this point, you should contact the Attorney General's office: http://www.ag.ny.gov/ or the NYS Consumer Protection Board: http://www.nysconsumer.gov/


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