Legal Question in Credit and Debt Law in Texas

payday loan

I received a payday loan in the amount of 300 when it came due it was returned NSF. I have since paid $415 and now they want $1140. An employee of the loan company contacted my parents and told them I was going to jail for 3 years for internet fraud. I told him that this was illegal to do under the fair credit act, he told me not for him. they have turned it over to a law firm and the law firm contacted my employer and told them they would need to identify me when I was being served and they were pressing charges against me. What can I do?


Asked on 3/19/06, 10:54 am

1 Answer from Attorneys
TC Langford Langford Law Office

Re: payday loan

You cannot go to jail for a debt. A debt is a civil matter. You can be legally served with process at work. It is a lawsuit. You may still owe them money, or you may not, depending upon the nature of the debt and the contract. It is illegal to threaten criminal proceedings in order to gain the upper hand in a civil case. I strongly recommend that you consult with an attorney in this matter. If you cannot afford the consultation fee, then contact your local bar association or law school for low-income legal clinics.

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Answered on 3/20/06, 1:19 pm


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