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 collect
an alleged debt arising from a consumer credit transaction or other
consumer transaction, including a transaction primarily for an
agricultural 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; or
425.304(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.

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.

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?

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.

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

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