It appears as if the creditor, the car dealer is using "scare tactics" in violation of both Federal and State Law. Generally, under the Fair Debt Collection Practices Act, a debt collector can not threaten criminal action in connection to collect a debt. While, the car dealer may not be a creditor, the Consumer Protection Financial Bureau (CPFB) has extended certain rights against the creditors.
Additionally, under Indiana State Law, a creditor may not threaten to make arrests. Under both Federal and State law you are entitled to a $1000.00 in damages.
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