Can I get in legal trouble?

Question

I took out a loan from one of those payday advance places. I made my payments regularly for about 4 payments, then fell behind and couldn't contiue to pay. The place told me that they were going to take the money direct from my account through and ACH, so i made a stop payment. They have been calling me like crazy, but when I try to talk to them to work something out, they just want the full payment, which I can't make. I wasn't that worried about it until a friend of mine said it was a felony. Is this true?

Yes, I obviously know that it needs to be paid and I intend on doing so, but since they won't accept payment (they told me all partial payments would be returned to me) I am going to have to save the money until I get it all. In the mean time, I don't want to go to jail or something.

Answer 1

It's not a felony--but you should definitly be worried about it.

You owe that company money and now you are refusing to pay. That's unethical. And while that company cannot get you arrested, they can ruin your credit and force you into bankruptcy. Do you realize that every day you don't pay, the amount you owe is skyrocketing? So when you do decide to face the music, you are likely to be faced with a crippling debt that far exceeds the amount you were lent.

Do whatever it takes to pay them off! This problem will not go away. And don't ever use payday loan companies--they are notorious for charging ridiculously high interest rates and unconscionable penalties and fees if you miss a payment--which most people (like you) inevitably do.

Answer 2

First of all, I am not going to lecture you on right and wrong and never do that again, like I am sure many people are about to do.

Second, I cannot tell you if it is a felony; I have no idea.....

but I can tell you from experience that these people are bullying you..they see that you are clueless, so they are taking advantage by trying to scaring you to come up with the money, some way, some how...they think eventually you will crack and take out another loan from someone or some place else to pay them off...they just want their money....I will say that last statement again, as it is important...they just want their money...so...stand up for yourself. Next time you speak to them on the phone, in a very stern voice, say "I cannot pay you the full amount, I am only capable of giving you this much." Then state the next available date when you will be able to pay the remainder, or make another payment. Hang up if they try to argue and bring the payment in or mail it. Continue to do this until it is paid off. Something is SO much better than nothing...this should get them off your back (or a little while at least) and for good once it is paid.

They could send it to a collection agency, which you do not want because it makes it even worse on your credit and they will probably roll in extra fees so you are going to end up owing alot more money than the original debt. That is why you should try and pay this off as soon as possible...but collection agencies sometimes charge the business, so by you making payments they may back off, because they will see that it is easier/cheaper just to get the money from you.

Answer 3

I don't think it's a felony, but it can affect your credit if they report it.

Once when I moved out of my apartment I left a little bit of a mess and the apartment complex wanted to charge me a $900 cleaning fee (which was ridiculous). My father told me not to pay it (bad idea) and they reported it to the credit bureau as a debt write off. That thing was on my credit report for years. They also refused partial payments and wanted it in full. After a year they finally decided that a payment system was better than getting nothing.

Anyway, I don't think it's a felony, but you definitely want to pay it off.

Answer 4

It depends on the amount. In most States it has to be more than $500.00 to be considered a felony, but if you wrote a check like most payday loan places require? Then yes writing a hot check is a felony.

Answer 5

You should discuss the situation with the company & ask them that you are not able to pay them at once, instead you can give them post dated 3 to 4 smaller amount installment checks, of the total amount due to them. This way you can clear your debts conveniently. If the company is reasonable they would understand the intention of the loan payer is clear & would certainly accept your demands. But its worth

Answer 6

Whether or not it is a crime can vary between states.

They can sue you in court for the full amount, plus penalties and legal fees.

They planned it this way.

Payday advance places were outlawed in my state, but they found a loophole in the law and came back.

Never do business with them, ever, again.

See a bankruptcy attorney. The initial consultation is usually FREE, and they can help with debt even if you do not file for bankruptcy protection.

Answer 7

Why aren't you that worried? I would be worried if I couldn't meet my financial commitments. You need to work with them to come up with a payment plan so that you don't damage your credit any further.

It is wrong to just blow off a financial obligation.

Answer 8

yes and your in trouble. you need to make an attempt at restitution, more than calling them on the phone. they loaned you money so you need to pay them back. go in and talk to them and explain your situation, hopefully you and they can come to an agreement

Answer 9

one tip:
When collectors call you at home you have a legal right to tell them to "not contact you at home." If they do so after you made a request they are violating a law. It may be easier to deal with them through mail, so at least you don't have to be harassed.

Answer 10

I would say you need to come up with the $$ and pay them. Not paying them is like theft and that is a crime..