Legal Question in Criminal Law in Indiana

I live in Indiana and my wife had several on line payday loans she had taken out without my knowledge. I found out and closed our joint bank account which she had authorized the lender to access for payment. Well now she is receiving phone calls from them saying she committed fraud and they are going to have a warrant put out for her arrest. I have researched and found that on line payday loan companies are governed by the same state laws as a brick and mortar store and they are prohibited from filing criminal action and their only remedy is civil ligation. She doesn't believe me when I say they are just threatening her with this to intimidate her. She may be in default of her contract but she did not commit fraud- I closed the bank account to try to get our finances under control-she intended to pay and still will just not under the previous provisions of the contract. Can you verify that she will not be arrested for fraud on this matter? Thank you.


Asked on 6/29/10, 1:13 am

1 Answer from Attorneys

The pay day loan comapny can report hte action to the authorities who would decide whether to

prosecute. The company cannot start a court criminal proceeding. Bottom line is you should try to make some payment arrangements with the company(ies) since she does owe the money.

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Answered on 7/02/10, 5:27 am


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