Expert: Regan Shinski - 11/1/2010

Question
I took out a payday loan and then had to close the account they were to receive payment back off of, due to tons of hidden fees that I was not aware were going to hit my account. I tried calling pay day loan company to tell them and set up repayment options and NO ONE would listen to me. I then get a call that if I DO NOT pay them they will come to my place of employment and serve me and I will have to go "down town" and also by the time I finish paying "bail" and court fees, were looking at a 400.00 pay day loan costing me over 4000.00. The man says he is a lawyer and was playing word games with me as far as I am concerned. I owe the originally money, this I am not disputing. My question is this, can they come to my place of employment and arrest me for this? He told me that since the loan was "paperless" ( done 100 % on line) that HE DID NOT have to send me anything in writing before showing up with papers and "escorting" me down town. I am not sure if I mentioned, my state is Texas. Please help!!! He says they will be here tomorrow...

Answer
Hi Sheila:

I would calm down a little bit, it's probably not as bad as it sounds.  HE cannot arrest you.  Only law enforcement can arrest you.  It is likely he has not even filed a police report yet - if he will at all.  He can serve you papers to appear in court.  This is NOT for a criminal trial or for jail time.  It would be a for a civil lawsuit to sue you and try and collect the money.  He can't "take you away."

It is a little concerning and technically a crime that you wrote a check on an account that ended up being closed.  You still need to take care of this because it can be referred over for prosecution.  The best thing you can do is make a payment.  Paying the $400 would be ideal but getting any payment would probably help or secure you a little bit.  Be sure to keep some type of receipt.

So I guess the bottom line is I would be pretty sure he is huffing and puffing for collection purposes.  This includes preparing for a civil trial which means you could be served papers - even at work.  However, this does not mean you will be arrested.  Since it's on a closed account, there is a chance of criminal charges down the line, so you need to address it quickly.

I also think you have an option regarding the collection techniques.  This is borderline threats and illegal collection activity.  If he is not the original creditor but a collection agency or third-party attorney, it is DEFINITELY against federal law (FDCPA).  I would consider trying to get him on tape making statements like that.  You can use those tapes as part of your defense and/or countersuit and collect decent money.  At the very least, the tapes would help offset your debt.

Good luck, I hope this helps.  Probably not as bad as you think, but still can be VERY serious.  You need to address quickly.

Regan

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