Can a payday loan collector have me arrested if I can’t pay?

UPDATED: Feb 12, 2012

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Can a payday loan collector have me arrested if I can’t pay?

I took out a payday loan and fell behind on my payments. Now I have had an officer from the collection company telling me he will have the local police in here arrest me for fraud unless I can pay $400 every 2 weeks for 2 months. I really can’t afford that that. I have made the first $350 payment and now I have read on-line that this could be a scam. My next payment is in a week and I really can’t go to jail.

Asked on February 12, 2012 under Bankruptcy Law, South Carolina


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

For the pay day company to threaten you with arrest and jail if you cannot pay what is owed in a timely manner is an unfair debt collection practice and clearly illegal by the pay day company. I suggest that you do your best in making weekly payments on the loan. Make sure you have receipts given to you for each payment made and keep them in a safe place.

If the pay day company continues to threaten you with arrest concerning the debt, I suggest that you consult with a consumer debt collection attorney about your situation.

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 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.

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