Expert: Chris Ebert - 3/23/2010

Question
I got a online payday loan back in 2006. There just now notifying me stating that it hasn't been paid. They are threatened to prosecute and put me in jail. Can they do that? At first the woman I spoke to only gave me her name and not the company she represented. Once I refused to discuss my personal information with her until she did. Thats when she told me the company she was working for. I'm really nervous and I don't really remember taking out this loan. But she's telling I did and that its consider a bad check and they're prepared to prosecute fully. Please help, is the statue of limitations out or can they really do this. Thanks

Answer
Shannon,

They can not put in jail for taking out the loan and not paying it back. The tactic that some payday companies use is to get a post dated check and run it through to see if it goes NSF.

I would demand proof of the debt by sending a letter to them via certified mail. I have attached a sample letter:
http://www.henleycreditlaw.com/266/

Chris Ebert
http://www.henleycreditlaw.com