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

Charlotte, NC |

Can I be prosecuted?

Attorney Answers 4


  1. 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.


  2. 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 issue. The questioner should not base any decision on the answer and is specifically advised no client-lawyer relationship has been established. Put simply, seek the advice of competent counsel without delay to discuss the particular aspects of the case, factual scenario and historical background. NOTE: There may be other facts and law relevant to the issue. Readers should not base any decision on the;information provided herein and are specifically advised no client-lawyer relationship has been established. Put simply, seek the advice of competent counsel without delay to discuss the particular aspects of the case, factual scenario and historical background WHY: The content herein is provided for educational purposes and should not be inferred as applying only to DWI / DUI criminal defense. In fact, it may be equally relevant to claims of personal injury involving accidents and the consumption of alcohol or more simply, to the daily practice of law. Bill Powers lectures on such issues on a regular basis with the intent to educate, to be fair, to be accurate and to encourage, open, honest and scientific discussion on the subject. Attorney Bill Powers did NOT represent the Defendant in the particular cause of action.


  3. 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 be legal advice. Mr. Leroi answers questions on Avvo because he strongly believes in public service from his years as a judge, magistrate, and prosecutor. If you need to ask any follow up questions because my answer did not fully address your question, feel free to call Chris or post an additional question. Thank you.


  4. 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 intended to create a lawyer-client relationship. Every case is very "fact-specific" and persons wishing legal advice on a specific matter should contact me or another attorney for an appointment to review their particular circumstances and to create a lawyer-client relationship. Gregory L. Abbott, Attorney at Law, 6635 North Baltimore, Suite 254, Portland, Oregon 97203. Tel: 503-283-4568; Fax: 503-283-4586; Email: gregabbott@comcast.net. Specializing in Consumer and Small Business Law.

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