I live in VA and was contacted today from a payday loan in 2008 saying they were going to send paperwork for my local county to arrest me on 3 felonious charges, but then said we will let you pay half today and the remaining the end of the month. She also said she was not calling to try to get me to pay but to let me know they were sending paperwork to arrest me at 12:00 noon.
1. bank fraud
2. molishish intent...
If this loan has been in default since 2008 it is likely barred by the statute of limitations (5 years). It is also unlawful to threaten a criminal action to collect a debt (which is why she said not trying to get you to pay but then did). What is likely is they have sold the loan to a bottom feeding collection agency that specializes in collection of uncollectable debt. If you pay them anything, it will restart the statute of limitations period.
Did this person provide a name, address and proof that you owe the money? They are required to do so under the Fair Debt Collection Practices Act. Don't say anything more to them other than demanding this information.
This response is for general informational purposes and not intended to be taken as legal advice nor does it establish an attorney-client relationship. See further disclaimers on the site. You should always seek competent professional advice in the legal area and jurisdiction.
I agree with the previous answer and if they threatened you they are most likley scammers who are not properly licensed to collect.Use Avvo Advisor for a review of your paperwork and a written chronological summary. GUIDELINES FOR DEALING WITH AN AGENCY.
1. Keep a DETAILED LOG OF ALL CALLS AND LETTERS AND A PAPER FILE of all information. Because persistent violations of the FDCPA are punishable by statutory fines and attorney’s fees under federal law, but you need evidence.
2. Make a WRITTEN DEMAND that all further communications under 15 USC 1692 (c). The letter should also contain a dispute of the validity of the charges and include a demand for a complete accounting with signatures, and all contents of their file.
The creditor then has 30 days to reply and may not take any action until the validation has been sent. This may be motivation for the collector to work your account when they get file from the original creditor and pressure from the original creditor to collect.
3. DO NOT GIVE THEM ANY PERSONAL INFORMATION because that is how collectors decide on which accounts to recommend suing. Remember they may not tell the truth and will say just about anything to get a payment from you and that payment reaffirms the debt, gives them information about you and your bank and ability to pay.
4. If you are going to make payments use money orders only and never personal checks, wire transfers, money grams, or “check by phone.” If the collector finds a bank account, the collector may recommend a lawsuit.
5. Collections are negotiable; the original creditor has given up and is losing up to 50% on the face value already either by splitting any return or selling at a huge discount. In addition, the costs of a lawsuit although discounted still are a factor in the decision to settle with you.
If you are going to settle mark the check “settled-in-full” at the very top back of the check and include a letter explaining that you are offering a settlement, keep copies of everything.
6. Get WRITTEN CONFIRMATION OF ANY PAYMENT PLAN THE AGENCY WILL ACCEPT before making a payment.
7. Specify IN WRITING THAT ALL PAYMENTS SHALL BE APPLIED TO PRINCIPLE first.
8. Never send money or provide access to your bank or credit card in response to threatening telephone calls or emails you receive claiming that you owe a debt.
9. NEVER GIVE ANY PERSONAL INFORMATION, such as social security number, credit card, or bank account information to any individual, website, or company without first verifying their identity and license status.
10. Check that a financial services company or individual is PROPERLY LICENSED to conduct business in your state.
DO NOT use a PAID debt settlement service; most of them are scammers.
If your debt is to the government like the IRS or for Child Support or taxes, the rules will be different and you will need a local lawyer.
Debt validation template
Then after your dispute has been sent go to www.annualcreditreport.com to obtain a free copy of your credit report from all three bureaus and see if the dispute is noted on the account, if not see a consumer protection lawyer at once.
Look for a qualified consumer protection attorney for a consultation:
Try Avvo Advisor at instant.avvo.com if you want to speak directly with myself or another attorney right away. Please be sure to indicate the best answer. If this answer was helpful, please mark as helpful below. Only. If and until you and I sign an Agreement for Legal Services, I am not your attorney. These answers are provided for informational and/or novelty purposes
You can never be arrested for failing to pay your bills; it is a civil matter only. Worst case: a judge rules that you owe the money. If a judgment has not been entered by now, it is likely barred by the statute of limitations. The next time you get a call from these folks, hang up. Consult with a local attorney for more information.
The answer provided is for general purposes only, and in no way establishes an attorney-client relationship.
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