Can payday loan companies press charges for fraud?

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Can payday loan companies press charges for fraud?

Can a payday loan company press charges against you for not being able to pay loan back? Is it legal for them to call and tell you that the police will come and arrest you for nonpayment and your running away with the money? The funds are being taken out of my checking account every month but this company keeps calling me and scaring me.What do I do?

Asked on February 28, 2012 under Bankruptcy Law, Texas

Answers:

B.H.F., Member, Texas State Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

First, get the name of the collector and supervisor that is calling you.  If you have any paperwork on this company, like agreements that you signed or business cards, then gather those as well.  Next, contact the Attorney General's consumer section and advise them of the same things that you have listed in your question.  If you have authorized a withholding from your account to pay this debt, but they still continue to call you, you may have a deceptive trade practice or debt collection act claim.  The AG is a good starting point because they have an on-line complaint system that won't cost you anything.  If the person calling you is a third party collector (not the actual loan company), then you could also file a complaint with the Federal Trade Commission.  They can also pursue claims at no expense to you.  The main issue with an AG or FTC complaint is that government action tends to take a little longer.  You may want to consider hiring a consumer attorney to review your case, and possibly send a letter instructing them to discontinue collection acitifies. 


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