Can I be arrested for not paying a payday loan? Is it a federal felony in Arizona?
I just received a phone call from someone at a "legal office" who said that they were were investigating my case and if I dont agree to pay the loan today that they will file legal papers and the federal system will be at my door in 48 hours to put me behind the system. I told him I was unemployed and could not give what I dont have and so he asked "well who are you gonna call to bail you out?" I told him no one I guess, he seemed stumped and then continued to say that he had been authorized to offer me a settlement but because I could not pay he could take a statement and offer it to the lawyer or prosecutor for consideration. Is this real?
Can you really be arrested for not paying back a payday loan?
Yes. You have to give your correct info because they verify it before they give you money. Since you are writing a check, yes, you can be arrested. The check would bounce, and when ANY check bounces you can be arrested. Generally, if you've never bounced a check before, they'll send you to some weird class about bouncing checks. If you keep on bouncing checks, you will go to jail. It's considered stealing. If the company doesn't press charges, you won't get arrested. I guess it depends on how the person in charge of pressing charges is feeling that day. Regular loans are different, they get sent to collections agencies.
What happens if a payday loan check bounces at Casland, OH? Do I face criminal charges, or jail? I intended to pay it back, on time, but an ACH withdrawal hit my account first.
Do you face criminal charges if a check you made as payment of a debt bounces?Allow me to clarify the situation (please allow that these are general principles, but I am under the impression that these apply in every state):If you present a check on the premise that there is currently money in the account to cover that check, in exchange for something of value, and the check bounces, then that is potentially constructive theft.If you post-date a check, then that is fair notice that there may not be money currently in the account, so there cannot be a criminal charge. (Note that you want to be able to prove that you post-dated the check.)If you present a check in payment of a debt, and the check bounces, then no theft has occurred. You just still owe the money.Creditors might like you to believe otherwise, but those who do are just liars.Some states provide statutory civil penalties for failing to make good on a check, possibly triple the amount of the check. The message here is: Don’t write the check to make a creditor happy unless you have money in the account. If you’ve given the creditor a post-dated check and know you don’t have the funds in the account, you should tell him not to cash it. He can still cash it, though it’s possible this would be a defense to the civil penalties.In any case, it’s not a crime to fail to make payment on a debt, and it doesn’t become a crime just because you previously wrote a check that you promised would be good, but you failed to make the deposit needed to make it good.Be aware that at some point, the creditor may obtain a judgement against you for non-payment, and you may be summoned to court for a judgement debtor examination. If you fail to show up, then that’s contempt of court, and that’s something which can land you in jail.
What makes loan sharking illegal but payday loans aren't?
Good answer by Kevin!In reality, a legal loan company will have a LOT of regulations to follow - punishments are pretty severe for infractions.This may not stop them charging huge interest rates, but at least they have to explain it, get you to sign a bit of paper saying you understand it and keep evidence they gave you the money.If you do not repay, what happens next is in their terms. It may be big (even excessive, but legal in that place) penalties, selling on the debt and legal action.A loan shark has no such limitations.They may claim you borrowed more than you did. They can arbitrarily change the deal (even if it was written down). As they generally do not have recourse to the legal system, defaulters will find themselves under a different type of pressure to pay, from threats to seizures of property or downright violence.Summary: Pay Day loan companies bad, loan sharks worse.
Can a payday loan company sue me for writing bad checks?
About a year ago I took out a $300 payday loan from Hydra Financial I. Due to life circumstances I was unable to repay the loan and had my bank stop all debits from this company. Last week I received a phone call from a company stating that they are representing Hydra Financial and I am being sued for writing bad checks. I asked if I could do anything to avoid going to court and they said I could set up a payment plan but had to make the first payment that day using a credit card not a bank account number. This company had also called several immediate family members and also a friend claiming they were trying to locate me. Is this something that they can actually do or is it a scam?
Can you go to jail for not paying back a payday loan?
No . for $500 they will not send you to jail, and will never pay an attorney his fees to prosecute you for that megar amount. I worked for a pay day loan company in 2007 and they are scum. They are wonderful people when they want to register you and then the hell begins on pay back time. Number one. Call them and say you need a payment arrangement. Number two call your state's consumer affairs division and explain the harassment. Number three put there number on the do not call list, to stop the harassment. Number four call your phone company and tell them they are harassing you. Document every thing I mentioned and just keep notes on all your calls, and action with this compnay. The state you live in may want it one day, if any law suits are
In the state of Kansas, can payday loans press charges against you for not paying back loan?
Of course they can. You committed fraud either way. Not only can they press charges they can take you to court get a judgment and then garnish your wages (if your State allows it), attach any bank accounts you may have and file liens on any real property you may own.
Payday loan company says suing my friend?Any advice are they for real?
My best friend took out a payday loan at ace cash express and was paying on it but had to stop as she could not afford it anymore well they called her the other day and said if she did not return the phone call they would send over a process server to serve her papers for court, they said she is charged with fraud..she called them back and they want money now she asked could she start paying next month and they said no if she does not pay someone would be over in the next 24 hours??We live in texas does anyone know when they serve you do they already have the court day as she needs to take off from work is this does happen..thanks