Can an internet payday loan company really charge you with check fraud?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Can an internet payday loan company really charge you with check fraud?
I tried explaining to the company that I couldn’t pay because my wallet had been stolen. He was rude and threatened I’d be hearing from their legal department. I received a phone call from someone claiming to be in their attorney group. She said that I had 30 days to pay or else I would be charged with intention to pay, fraud and check fraud. This was an internet payday loan. No check was given to them from me. Can they really press such charged against me?
Asked on July 22, 2011 Texas
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
People don't go to jail for owing money. Debtor's prison went out about the time Dickens. A person who has borrowed money cannot be threatened with criminal action for non-payment, unless they had committed a fraud of some sort in obtaining the money. That would be a crime. For example, if you took out a loan with no intention to repay it (and if a creditor makes that claim they would have to prove it). Absent that, neither a debt collector or creditor may threaten you with imprisonment or even the possibility of criminal charges.
The fact is that these empty threats are made all of the time. If such threats are made, you could actually bring suit against them. Additionally, they can not harass or otherwise intimidate, etc. It's the law. However, 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 banking information).
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.