Legal Question in Credit and Debt Law in South Carolina

Debt collection of an internet payday loan

A debt collection service entitled ''Financial Crimes Division'' has been contacting me repeatedly at work and over my cell phone threatening to charge me with crimes such as 1)violation of federal banking regulations, 2) theft by deception and 3)collateral check fraud. They have refused to send me the original contract by mail. They say they have an affidavit prepared but will not tell me through which court and which judge has signed the order. I have already paid this company $4000 from the Spring- Jully15th, 2008. Approximately two hours after the last payment was made, they called saying that they have two more checks I have to pay or be picked up by the police at home or at work. I do not want to be embarrassed at work. How do I find out if they can pursue the charges they say they have against me? Do I need to go and ask the Sheriff's Deparment if there is a warrant out on me?


Asked on 7/31/08, 4:55 pm

1 Answer from Attorneys
Sheryl Schelin Law Office of Sheryl Schelin

Re: Debt collection of an internet payday loan

In all likelihood, this is merely a collection effort, and a highly deceptive one at that. Unless there is a basis for alleging true fraud - at a minimum a demonstrable intent NOT to pay a bill at the time the bill was incurred - then there is no criminal penalty for failure to pay bills. Asserting that there is such a basis is highly deceptive and completely contrary to both federal and state law. You very possibly have an excellent claim against this business. I know it would be very difficult to risk a visit from the police but that's exactly what such fraudulent collection agencies are banking on: that you're too afraid to risk this, so that you'll pay this bogus bill.

I urge you to contact me or some other SC consumer attorney at your earliest convenience to discuss your rights and how to proceed. My contact information is provided on this site. It is crucial that you not delay, however; delay can negatively effect your chances of a favorable outcome.

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Answered on 8/02/08, 2:13 pm


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