Can payday loan companies press charges for fraud?

UPDATED: Feb 28, 2012

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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


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

Answered 11 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. 

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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