Legal Question in Credit and Debt Law in Texas
PayDay Loans/Collection Agency
I applied for a payday in the state of Texas in the year 2000. I was not able to pay for the check which original amount was about $350. They ran the check several times, and said I owed them for each time they ran the check through and the total came out the in excess of $900. They turned it over to a collection agency and also recorded it to my credit report, I have made some payments on it, but now they are demanding the rest be paid, or I can face criminal charges. Is this true and what can I do to satisfy this without being arrested. They have been calling me with this threat for several months now, but I am in a situation now where I come to work and sleep in my car because I have no where else to go. But I can't handle the pressure and stress of having the fear of being arrested. Please help.
2 Answers from Attorneys
Re: PayDay Loans/Collection Agency
It's my understanding that, under Texas law, that would be a civil matter, rather than a criminal matter. Where a collection agency threatens criminal charges to collect a civil debt, that's a direct violation of the federal Fair Debt Collection Practices Act.
Contact a local attorney about helping you pursue your claim under the FDCPA. The statutory penalties for such a violation may run as high as $1,000.
Re: PayDay Loans/Collection Agency
I'm an Alabama attorney, but under Texas law, collections efforts on payday loans may only involve civil actions. Their threats to take criminal action are a clear violation of state and Federal laws. Under the Fair Debt Collection and Practices Act (FDCPA), you are entitled to $1,000 statutory damages and maybe more under some ancillary state claims. Also good news is that under the FDCPA, an attorney will get his fee paid by the losing defendant, so you generally will not have to worry about paying the attorney's fee. If you have any more questions about this, feel free to give me a call: 205-915-9991
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