Can a payday loan company file criminal fraud charges?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Can a payday loan company file criminal fraud charges?
Asked on January 29, 2013 under Criminal Law, Oklahoma
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
No, unless you never intended on paying the money back; that would be fraud. Threats of criminal action are just that, threats. The fact is that a debtor cannot be arrested for failure to pay on a debt. In fact, it is illegal for a creditor to threaten criminal action for non-payment. Additionally, if you have attempted repayment, it may be more of a case of hard luck than fraud.
Further, if the company calling you is not the company that you borrowed from, it is then what is known as a "third party collector". That is someone who bought the loan from your original creditor. In that case, they may not call you at work (once you have informed them that your employer does not allow these type of calls). Also, you can also tell them not to call you at all, even at home. You should tell them this in a letter as well. Pursuant to the FDCPA (Fair Debt Collection Practices Act), if they continue to harass, you can bring legal action against them.
Note: If the original debtor is calling you then the FDCPA does not apply, although there may be some specific state law protection for you on this.
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 AttorneyPages.com 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.