Legal Question in Credit and Debt Law in California
Internet Payday loan
I was contacted today about a supposed payday loan not repaid over 2 yrs ago, specifying I would be arrested /going to court today if I did not repay/settle out of court today for a huge/mostly interest amount. I was given very little info but was told to money gram the money today. They would not give me any info other than it was a payday loan not honored 2+ yrs ago. Is this legal/legit? Do they have to try to contact me during those 2 yrs?
3 Answers from Attorneys
Re: Internet Payday loan
Did you receive any correspondence from the payday loan company indicating that you would be arrested if you did not pay? There may be a violation of the Fair Debt Collection Act.
Re: Internet Payday loan
They do not have to try to contact you during those 2 years. However, if they do, they need to comply with the Rosenthal Act, California's version of the Fair Debt Collection Practices Act. You can read more at www.californiadebtblog.com
You need to consult with an attorney immediately about this. They will sue you and ask for interest and attorneys fees.
Re: Internet Payday loan
Even if you owed the money, the tactics they used are illegal. Threatening to have arrested, charging interest now allows by law and threatening to take other actions not allowed by law are all violation of California and federal fair debt collection laws.
You should consult with a local attorney for 2 reasons: (1) you may need legal representation if you owe the debt; and (2) you may have claims against the collection agency for these abusive tactics.
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