A collection agency contacted and threatened me with jail about a payday loan. Payday loans are not allowed in my state of NC.

Asked 9 months ago - Charlotte, NC

Can I be prosecuted?

Attorney answers (4)

  1. F. "Bill" William Powers

    Pro

    Contributor Level 17

    1

    Lawyer agrees

    Answered . That's a complicated issue. Need more information. What's the alleged legal theory that would allow "jail?" MAY violate Chapter 75 "Deceptive & Unfair Trade Practices Act" of North Carolina.

    bill powers

    NOTE: Although a response is provided to the specific question, there may be other facts and law relevant to the... more
  2. Gregory L Abbott

    Contributor Level 15

    2

    Lawyers agree

    Answered . Can you be? Yes. Will you be? Highly unlikely. In order to convict you of fraud, they would have to prove that you intended to defraud them AT THE TIME you took the loan. How can they do that? Like I said, unlikely. That said, a collection agency's threatening you with jail likely violates federal, and perhaps your state, collection laws. If so, you could potentially collect monetary damages as well as recover your court costs and attorneys fees. You also potentially could have the collection agency sanctioned by their licensing authority and/or by North Carolina. Go see a local debt collection or consumer lawyer - many offer free initial consultation.

    Nothing contained herein should be considered as legal advice for any specific situation and nothing herein is... more
  3. Sean Tabibian

    Contributor Level 10

    1

    Lawyer agrees

    Answered . You will probably not be prosecuted it sounds like it's a scam however make sure that this does not involved in act where you at reading the bad check.

  4. Christopher Daniel Leroi

    Pro

    Contributor Level 20

    1

    Lawyer agrees

    Answered . The collection agency is violating the Fair Debt Collection Enforcement Act and you should report them to your Office of Attorney General to reprimand them. You will not go to jail for a civil debt for payday loans. You go to jail when you are prosecuted for theft or another crime by the DA's Office, not a collection agency. We do not have debtor's prisons in the US.

    The information provided in this answer does not create an attorney-client relationship and is not considered to... more

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