Legal Question in Credit and Debt Law in Missouri

Re: Payday Loan Co threatining to prosecute

This is a common tactic. Payday Loansharks use the prosecutor's office because they claim you wrote them a "bad check." However, you sought a payday loan; you were not cashing a check. When you wrote the check, you knew that check was not good. The payday loan company assumed that risk when it took your check. Now it wants to prosecute you for debt, which is forbidden by the Missouri constitution, Article 1, Section 11, which states: "Section 11. That no person shall be imprisoned for debt, except for nonpayment of fines and penalties imposed by law."

It is still quite possible that the prosecutor will file an action because all he sees is a bad check, and these places all use names that suggest they are check cashing services, not loan places. You could receive a letter from the prosecutor, and you could have a warrant sworn out for your arrest. You could be arrested, and you could be prosecuted. You probably have a defense, but if the judge didn't see things your way, you could potentially be convicted.

For this reason you should either (1) pay off the loan sharks if at all possible; or (2) see an attorney who can help you if you are charged and prosecuted.

Good luck.