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Payday lenders? They are Predatory that is for sure! Anyone evey have this happen?

I am in the process of trying to get my finances on track and I have made a choice that Bankruptcy is probably my best option, but I had one of these payday lenders call me at work today and threaten that they were not worried about the money I owed, but that they were going to pursue charges of fraud against me if I did not pay them $1002.00 today (in like 3 hours) for a $300 payday loan. Well I spoke with an attorney today, and they cannot, they can only file for the amount of the loan and try to collect that, so again it was another scare tactic. Anyone else have this happen before?


Asked by Anonymous at 5:04 PM on Nov. 17, 2008 in Money & Work

This question is closed.
Answers (10)
  • It all depends on if you got the loan at a store front or online. If you got it at a store and wrote them a check they they may have some recorse against you since they have a check. However i have had more than one payday loan from online and defalted on all of them. They bugged the heck out of me at home and work until li told them absolutly do not call me anymore they must send there correspondence in the mail. Once you tell them that they cannot contact you by phone. They can send u stuff in the mail. So they eventually sold the accounts to someone else and they started bugging me. Now they are just in collections. I don't think they will actually sue you or in the end take you to court. I think that would cost them more money that its worth . (cont)

    Answer by Anonymous at 12:12 PM on Nov. 18, 2008

  • That really depends on the contract you signed. Most of those payday loans charge over 100% interest. But no I've never been through it because I think those places are total scam artists and crooks.

    Answer by feesharose at 5:07 PM on Nov. 17, 2008

  • a few years ago I had taken out a loan with one and I some things come up and wasn't able to pay. Well about 3 weeks later they called and left a message on my voicemail talking about they were going to take legal action if I didn't come and pay right away. Well, I know this stuff works because I worked for a bank. I knew they were trying to scare me because they can't take legal action in just 3 weeks. So they do use scare tactics to try to get you to pay.

    Answer by tpalmer at 5:28 PM on Nov. 17, 2008

  • Yes. They try to threaten that they will prosecute you for writing a bad check, which is considered fraud. There's really nothing they'll really do besides file the debt with a collections agency or try to get a judgement against you. A lot of these places use scare tactics like this because it costs them a lot of money to send the debt to collections and they ususally end up getting paid less than the amount of the original debt. I called one of these guys out on what he was saying and he got so mad he started yelling then hung up on me!

    Answer by mom_of_two84 at 6:35 PM on Nov. 17, 2008

  • I use to be asst. manager of a payday loan place. Yes they lie. We got bonuses for every bad check we had to get in and pay, hence why these calls will kick into high gear towards the end of the month. We would usually only say we were taking it downtown to take further action. We never directly said we would sue them. The company I worked for didn't send to collections or take legal action. They just bugged you to death until it got old. However some of our local competitors took many people to court over bad checks. (not for fraud, just for the amount owed). They do have that power. So you never know if they are bluffing (which they usually are) or not.

    Answer by Anonymous at 10:04 PM on Nov. 17, 2008

  • Let me tell you why they can press charges on is because you wrote them a bad check. That's their business.. they give you a "payday" loan which is you writing them a fraudulent check (fraudulent because you don't have the money in the bank to cover it) then they give you some money. If you don't make your payments back to them, they can prosecute. Not to mention the fees that they are charging you for doing something illegal is just wrong. What you need to do is get them paid, you entered into this agreement with them, now you need to find your way out of it. Filing bankruptcy is not going to protect you from being arrested. Check fraud is a big deal! My them and then never step foot into one of those places again.

    Answer by slw123 at 10:35 AM on Nov. 18, 2008

  • cont... They will jsut harrass you for a while. Just don't answer your phone or tell them to stop calling u and only contact u by mail. Once you notify them of that they have to stop. If they give u more trouble tell them that you are going to contact an attorney and pursue harassment charges. By law they cannot call u repeatedly in one day or after you have told them not to. They can still contact u by mail though. Good Luck

    Answer by Anonymous at 12:13 PM on Nov. 18, 2008

  • I'm sorry you are going thru this. I have had to use the payday loans a few times and likely will again but they are definitely a pain and a hassle to pay back.

    Answer by nowaygourmet at 8:39 PM on Nov. 18, 2008

  • My mom is a manager for one of these places, they were told by the owner that they arent taking anyone to court for money. She does have to call people consistently, because if her store makes enough money, then she is allowed to hire an assistant. She wants one, because these places arent the best place to work alone. Call the place that you owe money to, and work out some payment plan. $10 here, $20 there. They will take it. My mom tells people to just pay what they can, even if its only $5 a month, because then it shows they are trying, and her company wont ask her to bug as much. Remember, the people who work there are human, they understand. Hell, my mom bought our christmas with title loans every year, so she knows where alot of her customers are coming from and works with them.

    Answer by Auntiemom410 at 12:21 PM on Nov. 19, 2008

  • Oh, and if they DO take you to court, not only do they sue for the amount owed, but court fees as well.

    Answer by Auntiemom410 at 12:22 PM on Nov. 19, 2008