I had a payday loan and a collection agency called and said that criminal charges was being brought against me can they do tha

Asked over 1 year ago - Pittsburgh, PA

They also had a locator person call me can they do this said i will go to jail and that they will file charges in my state

Attorney answers (3)

  1. Gregory Thomas Artim

    Contributor Level 12

    5

    Lawyers agree

    Answered . No, they cannot file criminal charges. If the collector is a different entity from the payday loan business, then you likely have a claim under the FDCPA against them for making illegal threats.

  2. Daniel Edward Mueller

    Pro

    Contributor Level 12

    4

    Lawyers agree

    Answered . There is no debtor's prison in the U.S., and you cannot be arrested for simply defaulting on a debt. The payday lender industry is among the most predatory of all financial services. It is not unusual for collection agencies servicing such lenders to threaten debtors with arrest and prosecution. Such threats are illegal under the federal Fair Debt Collection Practices Act ("FDCPA") and the Pennsylvania Fair Credit Extension Uniformity Act ("PFCEUA"). Violations of these acts can lead to an award of damages and attorney's fees to the debtor.

    You may wish to contact a local attorney who handles FDCPA and PFCEUA cases to explore your options. You may well have defenses to this debt. (Note that there is no traditional payday lending in Pennsylvania because of restrictions on interests rates. So, I am assuming that this is an online or out-of-state loan.)

    To reach me call 215-248-0989. Harborstone Law Group serves Philadelphia, Montgomery, Delaware, and Bucks Counties... more
  3. Joseph A Mullaney III

    Contributor Level 12

    4

    Lawyers agree

    Answered . Payday loans were rendered effectively unlawful in Pennsylvania a couple of years ago. While a PA resident could conceivably apply for and obtain a payday loan, the payday lender generally may not enforce an unlicensed payday loan contract in Pennsylvania's courts.

    As far as payday loan "fraud" is concerned, a person could be convicted of fraud if that was the perpetrator's provable intent, a prosecutor is willing to make a case, and a jury convicts. However, police or prosecutors usually notify a person of criminal charges, not some clown playing around with a phone.

    Disclaimer: Nothing stated herein is legal advice. For legal advice, consult an attorney; I am not your attorney... more

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