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

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

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Attorney answers 3

Posted

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

Jay Bodzin

Jay Bodzin

Posted

It definitely is a violation, and of Oregon's state-specific fair trade practices laws as well.

Posted

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: <br> <br> Jay Bodzin is licensed to practice law in the State of Oregon and the Federal District of Oregon, and cannot give advice about the laws of other jurisdictions. All comments on this site are intended for informational purposes only, and do not constitute legal advice or create an attorney-client relationship. No posts or comments on this site are in any way confidential. Each case is unique. You are advised to have counsel at all stages of any legal proceeding, and to speak with your own lawyer in private to get advice about your specific situation. <br> <br> Jay Bodzin, Northwest Law Office, 2075 SW First Avenue, Suite 2J, Portland, OR 97201 | Telephone: 503-227-0965 | Facsimile: 503-345-0926 | Email: jay@northwestlawoffice.com | Online: www.northwestlawoffice.com

Posted

These are clear violations of the FDCPA.

My response is general information not intended as legal advice or to create an attorney-client relationship. Seek advice from a qualified attorney to see how the law fits your specific facts. I am licensed to practice law in Washington and Oregon.