Is it illegal to allow someone to use your check as collateral against a payday advance with your consent?

UPDATED: Nov 9, 2011

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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


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 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.

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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