Is it legal to tell someone over the phone they will be arrested and sued for a payday loan?

Asked about 1 year ago - Klamath Falls, OR

I received phone call stating that i was being sued by a pay loan advance and that i was being charged for identity theft. They stated unless i pay them today I would be sent to jail and my work would be notified

Attorney answers (3)

  1. Jay Bodzin

    Contributor Level 20


    Lawyers agree

    Answered . This is a violation of the Federal Fair Debt Collections Practices Act, and of the Oregon Debt Collections Practices Act as well. You cannot be jailed for failure to pay a debt, and debt collectors are not legally permitted to notify your employer or other third parties about your debts. It is against the law for debt collectors to threaten to take any action that they cannot legally take. You may be entitled to statutory damages under these laws. (However, you will have to be able to prove that this happened, which can be difficult. You should also note that the FDCPA claim, even if successful, does not erase your underlying debt.) You should consult with a consumer protection attorney to determine how best to proceed.

    Please read the following notice:

    Jay Bodzin is licensed to practice law in the State of Oregon and... more
  2. Gary D. Bollinger

    Contributor Level 19


    Lawyers agree

    Answered . Probably a debt buyer and likely a violation of the FDCPA.

  3. Robert Charles Russell


    Contributor Level 13


    Lawyer agrees

    Answered . These are clear violations of the FDCPA.

    My response is general information not intended as legal advice or to create an attorney-client relationship.... more

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