Legal Question in Credit and Debt Law in Virginia
payday loan collection
I live in VA and obtained a payday loan online from a company in CA. I was unable to repay on time and was sent to a collection agency in FL. They have contacted me and stated if I don't pay $515 in 5 days they will procecute me for bank fraud. The original loan was $200. Is this something they can do. They keep calling my work and telling my boss they have a warrent for me. What can I do?
2 Answers from Attorneys
Re: payday loan collection
The collection agency is breaking the law 1) by calling your boss, and 2) by threatening criminal prosecution. You have a free lawsuit against them. Consult a local attorney who has heard of the FDCPA (Fair Debt Collection Practices Act). Never again take a "payday loan."
Re: payday loan collection
No, they cannot do that. And it is improper for
an attorney to threaten criminal prosecution to
get payment in a civil matter. It may also be
a violation of the Fair Debt Collection Practices
Act. WE should take a look at that and maybe
you should sue them for that.
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