Legal Question in Credit and Debt Law in New York

payday loan criminal charges

I received a payday loan in PA for $200 from CashNetUSA. I repaid $240 out of $290. My account went negative before the loan was paid. I am now being threatened with criminal charges if I do not pay by 11/28/08. I have researched this and found the criminal charges are not legal on payday loans via Federal Law. Can you verify thsi info and advise me?


Asked on 11/19/08, 11:41 am

1 Answer from Attorneys
Andrew M. Doktofsky Andrew M. Doktofsky, P.C.

Re: payday loan criminal charges

It is a violation of the Fair Debt Collection Practices Act to threaten criminal prosecution to collect a debt. This assumes that you did not commit a criminal act such as forging a check, etc. However, creditors attempting to collect their own debts are not covered by the FDCPA. If a collection agency is threatening you, then you may have a cause of action against it. The New York State law regarding debt collection does apply to creditors collecting their own debts � however, there is no private right of action and your recourse would be to file a complaint with the Attorney General�s Office. You may want to contact an attorney in Pennsylvania to determine if the creditor is in violation of any Penn. statutes. Go to NACA.net to find a consumer law attorney in Penn.

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Answered on 11/19/08, 12:31 pm


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