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About Regan Shinski
Expertise
I can answer questions on collections, repossessions, bankruptcy, credit repair, credit counseling, FICO scores, credit planning, and the cause and effect of credit related decisions. I can also answer questions on collection settlements and preparing to sue your creditors for false debts and credit credit reporting.

Experience
Fifteen years ago I was financially devasted due to severe health issues. I filed bankruptcy, had a foreclosure, car repossession, tax lien, and ruined credit. I immersed myself in credit law. I settled dozens of accounts and had them removed to improve my credit. I personally sued four creditors and collection agencies and won cash settlements for their false reporting on my credit reports. Since then, I have completely recovered and have nearly $100,000 in revolving credit lines and perfect credit. I have owned a credit repair company for the past five years and have an additional three years of specific work in the collections and debt management industry. I am fully versed in the Fair Debt Collection Practices Acts (FDCPA), Fair Credit Reporting Act (FCRA), and have used them successfully in collection settlements and lawsuits for myself and others. I am also familiar with and abide by the Credit Repair Organizations Act (CROA). I have deleted or helped delete literally hundreds and hundreds of derogatory items from consumers' credit reports and helped negotiate many settlements with collection agencies and creditors. I have also advised people on bankruptcy at any stage. In the current credit market, I have successfully advised numerous people on how to obtain credit and how to negotiate for better terms.

Education/Credentials
BA University of Minnesota

You are here: Experts > Business > Corporate Law > Collections Law > default on payday loan

Collections Law - default on payday loan

Expert: Regan Shinski - 10/26/2009

Question
QUESTION: I owe an old payday loan from 2005 I am unable to pay it at this time a person called Identifying himself as a lawyer he said they were going to file fraud charges on me I'm a single parent and can not afford to pay the loan at this time I live in texas How could they prove fraud charges on me? I paid them for a while and due to financial problems could no longer do so.

ANSWER: Hi Debra:

The company or collection agency cannot. If you violated a law, they could REFER you to the prosecuting attorney for fraud charges and that prosecuting office would make the decision on whether or not to pursue criminal charges. Even then, it typically would only be if you presented false or misleading information on the application. There is no debtors' prison in this country so you inability to repay a debt by itself is not a crime.

Do you know what company he is representing? Try and find out. If he represents a third-party collection agency, he committed a MAJOR violation of federal law. Contact me back if this is the case. There are specific steps you can take not only to stop it, but likely collect money from THEM.

If he is a lawyer working for the actual creditor, they have more leeway. However, threatening criminal charges when/if none exist is also borderline - at best - on their end.

If they are calling regularly, you may want to consider recording the calls. You can pick up inexpensive recording devices at electronic stores or other places. I show Texas as a single-party recording state meaning you do not need their permission to record the call but you should verify this for sure.

Once you find out who they are representing, contact me again. You really have some options here not only to stop this, but possibly put an end to the debt as well.

In the meantime, if you did not obtain the loan under false pretenses and committed no crime since, I would not worry too much about fraud charges.

Regan
mbscompany@aim.com
813-454-1459

---------- FOLLOW-UP ----------

QUESTION: what wouldfalse pretences be? I have new payday loans I paid them off and had to reapply now my hours have been reduced again at my job I think iam in the same trap help I am worried to death I really did not want this to happen again.

Answer
There are many things that could be considered fraud or false pretenses. Examples would be lying on the application, giving falsified documents, or false information. Basically anything that you gave, said, or wrote to the lender that was intentionally not true for the purpose of getting the loan.

These usually have to be egregious or obviously fraudulent acts. Writing your average income was $1,000 per week when it really is $990 is not fraud. Writing your average income as $1,000 per week when you were laid off three days before could be fraud. Being laid off or having your hours reduced after the loan is not fraud. So it's kind of common sense type stuff. If you did you best to give accurate information and not mislead them, you should be fine from a criminal standpoint.

Hope that helps. Good luck.

Regan

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