Expert: Chris Ebert - 3/1/2010

Question
I recently been receiving calls from a guy saying that they are trying to collect a debt that is almost 7yrs old from a payday loan saying that they about to put a warrant out for my arrest if i don't pay the amount told to me my loan was 300 and they telling me i have to pay them $1225.00 now but i moved from texas in 2003 i'm back in La what can be done

Answer
Constance,

First, they can not threaten arrest. That is a violation of FDCPA. Also, they can not arrest you in reality for this debt.

Second, if you took the payday loan out in Texas they most likely can not sue because of the Statute of Limitations is 4 years. It is a possibility that by moving to LA could invoke new statute of limitations of that state. See http://www.henleycreditlaw.com/2009/12/statute-of-limitations-sol-on-debt-by-sta...

All they can do is sue you in LA. If they do, then be sure to answer the lawsuit. You can find a local consumer attorney by going to: http://www.naca.net

Chris Ebert
http://www.henleycreditlaw.com