Legal Question in Credit and Debt Law in Pennsylvania

I need help I think.

I had gotten a payday loan for seven hundred dollars. I had every intention to pay the loan back,this is not the first time I've gotten a payday loan.I completely forgot about it, and they never tried to contact me about it. It's been over eight months. On the day after christmas I got a call at work and they said it was the F.B.I, and they said if I didn't authorize them to take money out of the bank that they would send the police to my job, and have me arrested. They said since the loan was done over the internet,and because they are seven states away they could have me arrested for fraud and all kinds of stuff. the point is well since it was the day after christmas I was broke and had no funds in the bank,but they urged me to make a payment over the phone.They would not even give me the phone number to call them back so I could see if I had anything in the bank first, and they said if I get off the phone to check my bank for funds that they would call the state police and have me arrested. So my question is this. can they actually arrest someone and charge them with a felony just cause they forgot to pay back a payday loan? and question 2 is can they do that even after they never made any attempts prior to this to collect.


Asked on 12/29/07, 11:21 am

1 Answer from Attorneys
Roger Traversa Arjont Group (Law Office of Roger Traversa)

Re: I need help I think.

You asked about payday loans.

It is patently unlawful for a creditor to pretend to be a law enforcement official of the collection of a debt.

Hint, the FBI has bigger things to do than debt collection for corrupt lenders. I would suggest getting an attorney to represent you and then prosecuting these lenders for their illegal tactics.

A loan is a contractual agreement and is not enforceable by criminal penalty unless it is demonstrably fraud. Fraud would be the failure to disclose something of import in obtaining the loan. Unless you intended not paying the loan when you took out the loan then fraud would be an improbable charge. Moreover, it will actually be a money loser for the lender to sue to get you to repay the loan.

In this case I would recommend the following. Keep a recorder by the phone and record any further conversation with these people. Report their conduct to your local FBI field office. The FBI takes these issues seriously where it would not even consider the fact of a loan so small to be an issue. The FBI would not refer a matter to the state police. Finally, get an attorney and consider suit against the lender for the intentional infliction of emotional distress and possible violations of collection practices.

Regards,

Roger

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Answered on 12/29/07, 12:30 pm


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