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pay day loan default


Sphas3
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I took out a payday loan last March I didnt make any payments and now the Sheriff is looking for me I called the warrant squad and they gave me an amount to pay in 24 hrs or else I will get arrested. They call it fraud when you dont pay back the payday loan.....please advise.

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Well firstly, payday loans are illegal in New York. No one should have even given you one if you live there. It is my understanding that they really can't collect on it without triggering an attack ont hem from the AG office (Spitzer is quite actively going after PD loaners).

Second, you can't be arrested for unpaid civil debt. There is no debtor's prison in the US. Unless you were sued and the judge sent a bench warrant on you for failing to appear (which is exceedingly rare), this sounds fishy.

Fraud is a term reserved for much harsher crimes. New York does not have criminal penalties on bad checks. Only civil. The person you wrote the check to can sue you for the amount of the check, plus court costs and treble damages of 2x the amount of the check (maximum $750.00).

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I didnt see anyone but a detective went to my friends mothers house....kinda weird......I also read the payday loan complaint from the NY Attorney General webpage it was against 2 payday companies but those it apply to all payday companies?

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OK, try calling the REAL police and reporting that someone is in the area posing as a law enforcement officer. Get your friend's mother to make a statement. Impersonating a LEO is a felony in most states.

Later, when you sue the CA or payday advanec people, you can use the police report and the officer's testimony to get some cash.

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Thought I would throw this out there. Couldn't it be considered fraud if you took out a payday loan (giving them a post dated check) then not honoring the check come time to pay?

I believe you can go to jail for writing checks you know you can not cover or have no intention of covering. Of course that would have to be proven.

I am no lawyer but just thought I would bring that up. I once had to go to court on a bounced check and was told by the court the sheriff could arrest me.

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That's probably though how the PDL operates - uses the threat of prosecution under check kiting or bad check laws and assumes the customer is unaware.

Consider how many stores have signs up around the registers reminding people that passing bad checks is illegal, criminal, go to jail go directly to jail do not pass go do not collect $200.

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Bad check laws are State issues. As I mentioned above, there are no criminal penalties in NY for bad checks.

Other States can have criminal penalties when the amount goes over a certain limit. Georgia, for example, does have criminal penalties... misdemeanor if less than $500, felony if over $500.

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Many states have an exemption to the bad check law. Here is from Florida 832.05 (2):

except that this section does not apply to any check when the payee or holder knows or has been expressly notified prior to the drawing or uttering of the check, or has reason to believe, that the drawer did not have on deposit or to the drawer's credit with the drawee sufficient funds to ensure payment as aforesaid, nor does this section apply to any postdated check.

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I didnt see anyone but a detective went to my friends mothers house....kinda weird......I also read the payday loan complaint from the NY Attorney General webpage it was against 2 payday companies but those it apply to all payday companies?

Dude this is just a scam. A lot of places like PDL and Rent To Own outfits do this crap. Don't worry about it.

I had a rent to own place try this very same thing with me, they showed up here and wanted to know where "so and so" was. (In this case I had no clue who they were looking for, had never heard of them.) Upon looking close I could tell this guy was not a deputy or even a cop. Bail bondsmen looking to capture skippers also try this tactic.

If in doubt, call 911. Trust me in 99% of the cases they will bug out faster than crooked politican from a news confrence.

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As far as bounty hunters go, it's legal. Apparently a USSC decision handed down in the late 1800's (think - wild wild west) made it legal for bounty hunters to capture those who have jumped bail. Frankly for someone to sit in jail and await trial, before being found guilty or innocent isn't right. And without the possibility of those who go after the bail jumpers, more people would do it. I don't care for some of the bounty hunter's tactics, like waving guns in people's faces to "extract information".

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  • 1 year later...
I am having a problem with payday loans too. I have 6. I had to get them to stop an eviction. I live in PA and legally I don't think we are allowed to have more than 1 loan at a time and I read somewhere that they can't be higher than $500. My first loan was $650 which is a violation on their part and the 5 other companies are obviously breaking PA law because they asked me if I had any outstanding loans and I said yes but they gave them to me anyway. They are also not allowed to charge more than something like .17 per $1.00 and they are charging me at least $30 per $100.When I was reading over my contracts they say that I agree that the governing law is the state that they are in and not where I live and PA law is irrelevant. There is no way that I can pay them right now and I am closing my checking acct. on Monday. Does anyone have any advice? I don't know what they can do legally. If they sue me does it have to be in my home state or can they do this anywhere?

:Domina: rebsgrl xWhipMex:Domina: you are double posting and this thread is from 2005. Try to bump your other post rather than posting again.

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