Can a collection angency dealing with payday loans take you to jail ifb your unable to pay back
Country relating to Question: United States
State (if USA): Wisconsin
I have talk to an attorney but I am really scared because I got a call from one collection agency and the guy said that they have a warrant for my arrest and the cops are gonna come on Monday and take me to jail if I don't make my full payment on a payday loan. I am really scared and I have three kids I want to take care of especially my 3 month old boy. Please can someone help me answer this question or just help me please.
Hello and thank you for allowing me the opportunity to assist you.No, you absolutely cannot be taken to jail for failing to pay a loan! In fact the collection agency violated the law by making that threat. The Federal law forbids debt collectors from making false claims about criminal repercussions in order to scare people into paying a debt, and the Wisconsin law forbids debt collectors and even the original creditor from making those claims:427.104 Prohibited practices. (1) In attempting to collectan alleged debt arising from a consumer credit transaction or otherconsumer transaction, including a transaction primarily for anagricultural purpose, where there is an agreement to defer payment,a debt collector may not:(b) Threaten criminal prosecution;Here is the penalty:425.304 Remedy and penalty for certain violations. A person who commits a violation to which this section applies is liable to the customer in an amount equal to the greater of:(1) Twice the amount of the finance charge in connection with the transaction, except that the liability under this subsection shall not be less than $100 nor greater than $1,000; or425.304(2) (2) The actual damages, including any incidental and consequential damages, sustained by the customer by reason of the violation. You may want to sue for the penalty in small claims court.If you would like any additional information or need clarification, please do not hesitate to ask! Also, I strive to be as helpful as possible so that you are satisfied. Accordingly, please remember to give me positive feedback (doing so does not end our discussion). If you feel the need to rate me poorly, please stop and instead of rating me, reply via the REPLY or CONTINUE CONVERSATION button with the issue that you have. I will be happy to continue our discussion and do everything that I can to provide you with the service that you seek.Thank you.
Ok. That helped me a lot but then he also said something about fraud. That if I don't make the payment then I will be in jail and be paying $4000. Then he hung up on me and his last word was we'll see you in custody. Can I sue that collection agencey and he didn't tell me which collection agency it is. Please can you help me figure something out. So that means no cops are coming to my house right.
Hi again.Based on what you wrote, you will not be arrested. Failing to pay a loan is purely a civil matter.Yes, you can sue the collection agency for the penalty mentioned in my prior answer (between $100 and $1000 dollars). If you don't know which collection agency it is, you can probably find out fairly easily by contacting the original creditor and asking which collection agency is handling your debt. In order to sue in small claims, you can visit your local court clerk and pick up the necessary forms. You should also review the Guide which is linked HERE.If you would like any additional information or need clarification, please do not hesitate to ask! Also, I strive to be as helpful as possible so that you are satisfied. Accordingly, please remember to give me positive feedback (doing so does not end our discussion). If you feel the need to rate me poorly, please stop and instead of rating me, reply via the REPLY or CONTINUE CONVERSATION button with the issue that you have. I will be happy to continue our discussion and do everything that I can to provide you with the service that you seek.Thank you.
Ok. Thank you. Well this lawyer just called me and she said that it is possible for me to go to jail if the collection agency has a warrant for my arrest because the balance I suppose to pay is $795. Now I'm scared because she said that to me. Please help me.
Hi again.Yes, it is possible that you can go to jail if there is a warrant for your arrest. But why would there be a warrant for your arrest? Failing to pay a loan is not a crime. If it were, why would the law specifically state, as I quoted above, that a debt collector may not threaten criminal prosecution.Why would the other attorney even reference a warrant for your arrest? Have you been accused of committing a crime?
What do you mean comitting a crime? I'm scared. They said that if I don't want to go to jail then I should make the full payment. The collection agency just called me and what should I do.
Hi again.Please relax. If this is a simple matter of you taking out a loan and not paying it back, then you have not committed a crime and you will not be arrested. I merely asked if you've been accused of committing a crime (i.e., fraud or theft), but did not in any way mean to imply that you had committed a crime. Refusing to pay a loan is not a crime. If it were, then half the country would be in jail with all the foreclosures and credit card debt not being paid.I just don't know why the attorney you spoke to even brought up a warrant for your arrest. A warrant would not be given unless there was probable cause that you committed a crime. Again, refusing to pay a loan is not a crime. I already quoted the law that states that a debt collector may not even threaten criminal prosecution. The reason is precisely because it scares people and is not an honest threat.Based on what you wrote, you have a valid lawsuit for violations of law.
Ok. Is fraud a crime because you how when you go get a payday loan they require checking account because they did metion about fraud but I didn't do anthing. But what am I suppose to do if they keep calling me? Is there anyone there that I can call today?
Hi again.Fraud can be a crime. There is both civil fraud and criminal fraud. I don't know what you mean about "they require checking account." Did you provide them with false information? Even if you did, that would not likely be criminal fraud. They'd need to be able to prove that you never intended to repay the money, and that will likely be impossible, unless you have a history of obtaining loans with false information and then refusing to pay them back.If they keep calling you, then you can send a cease and desist letter which asks that they stop communication. Click HERE for a template. Ultimately, you can be sued for not paying back the debt, however. I'm sorry to say that we do not take phone calls ... we work entirely through the website.Please remember to rate me positively, or I will not receive credit for my efforts with you today. Thank you!VAMD, Esq.41090.7980172801
Ok. Well what I mean is that when you take out a loan at a payday their require u to have a checking accout. But if you don't make your payment then they use the check you wrote to them to get the money but if they can't get the money from my account they will just charge me and so I wouldn't think that can be fraud right because I never use the checks at a store before.
Did they try to cash the check? Did it bounce? How long ago did you give them the check? When did they try to cash it?As a general rule, writing a bad check can be a crime. You didn't mentioned any of that earlier.
Well it was for doing a loan and I wouldn't think this would happen. I'm just scared but I don't think it bounce. My account is close and I think its been 2years almost three now. But I went to court for small claims and I filled out their financial disclosure form and sent back to the court house. Would it matter for this to happen. What else can I do if they keep calling me? They have been calling me today too. Is there anything else you can help me?
Hi again.Even if you wrote a bad check, it's been long enough that I doubt that there will be any criminal charges regarding the check. If any criminal charges would be filed, it would likely have happened years ago.So, I think this goes back to what I said earlier: This is a civil matter, and the threat of being arrested was a violation of the law. You can likely file a lawsuit against the collection agency. In order to get them to stop calling you, you can mail (certified) a cease and desist letter (I already provided a link to an example). Their only option at that point is to sue you. I can't help with the debt itself, obviously. If you owe the money, then you owe the money.I hope that helps, and please remember to rate me positively for my time and effort here today, or I will not receive credit. Good luck!
Licensed to Practice Law
What if I don't know who the collection agency name is XXXXXXX XXXX wouldn't tell me yesterday.
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Ok. I searched the phone number that they called me on google and I seen a lot of people wrote on their that the company have been harassing people saying that those people from loans out there that need to pay and if the people don't pay then they go to jail. The place they said that I have a loan for is called cash loan but I don't even have a loan out from the company called cash loan. But somehow they know my address and ssn. This place is from mexico. What can I do?
Ok. I looked up where can a cash loan be and it showed up as cash store. I live in wausau wisconsin and we do have a cash store and I wonder if that's what their talking about.
Ok. They said the cops are suppose to come to my house on Monday so else can I do
Hi again.I'm going offline, so I'll open this to other attorneys for their comments. I truly wish you luck!
Realize that they are in violation of the federal Fair Debt Collection Practices Act if it's a collection agency.The Pay Day company is NOT a collection agency - if they are contacting you they are trying to collect their own debt.So who is contacting you?
This place from mexico. I googled their number and thats what it said. They don't have no name. But I went to court for cash store already and the collection agency that is handling it is called cottonwood financial corporation...
This place from mexico. I googled their number and thats what it said. They don't have no name. But I went to court for cash store already and the collection agency that is handling it is called cottonwood financial corporation...I was reading comments what people say about the number the place called..
cottonwood financial corporation - they are a USA corporation??
I want more help. I want to get through this before Monday comes. Is there anything else you can help me?
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