Expert: Chris Ebert - 5/7/2010

Question
I recetly received a phone call from a processor stating that she was calling to warn me that papers were to be filed in court to have me arrested for check kiting and fraud for a pay day loan I don not remember receiving in 2007. She proceeded to tell me I would be arrested would not give me the name of the company or the amount of the loan but had my e-mail address and home address. I panicked and agreed to pay I am wondering if this could possibly be a scam or something I need to worry about I have since stopped any further payments to them I have received no written notice can i get some advice

Answer
Angela,

First, this is either a scam or an overly aggressive debt collector. Either way, they can not come arrest you. The most they can do is sue you.

I would stop the payment our of your bank account. You can still dispute the charge after they have taken the money out of your account. Unfortunately, you are going to probably need to open another bank account to stop them from drafting out a gain.

If they call again, do not pay anything over the phone no matter what they threaten and ask to see documentation before you decide to pay.

Chris Ebert
http://www.henleycreditlaw.com/diy-credit-repair/