Is it illegal to allow someone to use your check as collateral against a payday advance with your consent?
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Is it illegal to allow someone to use your check as collateral against a payday advance with your consent?
I allowed someone to use my checking account to get a payday advance and the company allowed it for two years and now they are suing me for theft of property for her entire account. The loan was paid on time every time and now they want to sue me. Is what I did illegal?
Asked on November 9, 2011 under Criminal Law, Tennessee
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
If you allowed a third person to use your checking account as collateral for a payday advance for him or her, there was nothing illegal about what transpired.
If the loan was paid on time at all times by the third party, I see nothing wrong. The threat of a lawsuit by the payday company sounds more like a civil dispute as opposed to a criminal matter. I suggest that you consult with a contract attorney. Good luck.
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