You wrote, " I called my AG office in Michigan and confimerd that payday lenders cannot use the crinmnal process only civil to recover funds"
Good for you! You checked on your rights.
The purchase ploy is amusing: your AG rules.
A collections agency cannot use the criminal code to charge you with anything. All they can do is sue you under the civil code to collect the debt. What the collector may have meant is that because you closed what I am assuming to be your checking account sooner, then it shows that you did not intend to pay the loan back if payment on the loan were being withdrawn from that account. Even in that case, all the collector can really do is file a complaint with the AG and the AG may decide whether to prosecute it or not.
Legal disclaimer: Mr. Tabaku may be reached at (240) 750-4663 or firstname.lastname@example.org. Mr. Tabaku is an attorney licensed in the state of Maryland. This answer is for general information only based upon the facts stated in the question and does not create an attorney client relationship between Mr. Tabaku or Tabaku Law Firm, LLC and any person. You should schedule a consultation with an attorney to discuss the specifics of your legal issues.
Payday loan people are outrageously viscious. Their industry makes a practice of threatening criminal charges that are simply not possible under the law. They routinely claim that their debts are nondischargeable in bankruptcy. But they never dare to step foot inside the bankruptcy courts to back up their claims.
I do not practice in Michigan, but in Ohio we frown on public prosecutors attempting to use the criminal courts to collect for a private collector, especially for the lying scum that calls itself the payday loan industry. Please pardon my warm feelings, but it makes no sense to use a public office to collect a private debt. Especially when it's clear that there is no criminal act involved.
Payday loans are LOANS. Period. They knew you were broke when they lent you the money. This is not a "bad check." It's a stupid loan. So do not pay attention to payday lender drivel.
But do get an attorney. You need one. Good luck.
This answer is not intended to create an attorney-client relationship and may not be relied upon as legal advice. A careful examination of the facts is necessary before a legal answer may be relied on. You should consult your own attorney before taking or refraining from any legal action.
Let me answer your question both in terms of criminal law and civil law.
First, regarding criminal law, you can be criminally charged for writing a check on a closed account, or for non-sufficient funds. That charge generally requires a complaint to law enforcement and, after investigation by law enforcement, a report from law enforcement to the prosecutor who actually files the criminal complaint. Only the prosecutor can file a criminal complaint, not a debt collector. But the debt collector can complain to law enforcement.
Secondly, you can be sued in the civil division, and the plaintiff can collect double damages. Notice can be served by first class mail; the written notice must comply with the statutory requirements for bad checks.
What concerns me about the phone call is the case code which you gave, namely "aa". No collection case would have that case code. Accordingly, I suspect that the debt collector falsely represented that there was a case pending. That can lead to your suit aginst the debt collector; turn around is fair play.
Finally, in Michigan, there is no proper notice of a court case by phone. In a criminal case, there is a warrant; in a civil case, there is written notice accompanied by service.
Contact an attorney about your case. The worst thing you can do is ignore it.
William L. LaBre, J.D.
Attorney at Law
68897 So. Cass Street
P.O. Box 550
Edwardsburg, MI 49112