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I took out a $1000 payday loan and soon after was scammed by a money lender in Canada and had to close my bank account & wasnt able to mk the pmts any longer. The account went to collections and is now in recovery.The woman that is handling my case in recovery says that I have to pay in full by the 15th and there is no way with all of my other bills. I do plan to pif with my taxes but wont get that back until beginning of February since the IRS wont let us file with our last paycheck stub. What action am I up against since this is a CSO lender in Texas? How should I prepare myself?

Posted: Sat Jan 05, 2008 9:49 am Subject:

Hi, welcome to the board.

Was your payday loan a storefront, or an internet lender? Also, what company is this, and how much did you pay on it?

If this is a storefront, they generally operate mostly within the laws. In the state of Texas, however, you don't have to worry about garnishments for consumer debts. They can seize bank accounts, but I have a hard time believing this will happen for a $1000 payday loan!! You pay what you can..Write them a letter explaining what you can pay..Include a payment with the letter. Make sure you send it certified. As long as you keep up with the payment plan you set up, there should not be any problems. Good luck!

Posted: Sat Jan 05, 2008 4:51 pm Subject:

ANd keep in mind, regradles of what they tell you, its a civil matter not a legal matter....you will not go to jail and you have not commited a crime Smile

But do take finsfans advice... Smile

Posted: Sat Jan 05, 2008 7:00 pm Subject:

If it is a registered CSO (Credit Service Org) they will be legal and not actually a pdl. As such they can do just about anything they like toi collect on the loan. How fast they would do it is the question. Did you try to explain that you could PIF in February?? Any way you could make a payment of some kind in good faith while making arrangements??

Posted: Mon Jan 07, 2008 8:11 am Subject:

It is possible in Texas for the lender to pursue bad check charges. But if you keep up communication, and try to make at least some small payment then you should be okay. It's hard to tell what they would do, but I think the drastic measures are only taken when they feel there is no way you will pay willingly.

JOE22 · Posted: Mon Jan 07, 2008 10:15 am Subject:

Are you saying they will take you to jail for not paying a payday loan? I though allstates have bad check laws.

Posted: Mon Jan 07, 2008 10:22 am Subject:

I doubt you would go to jail - It's usually a misdemeanor. You would have to go to court though.

All state's have bad check laws, but a lot of state's have specific laws relating to defualting on payday loans, and in those state's it's not considered a bad check.

evelyn · Posted: Mon Jan 28, 2008 11:21 pm Subject: i defaulted on my payday loans

i had took out several payday loans i guess secured with my checks i wasn't able to pay them can i go to jail over this even if i try to pay them i just can't do it all at once

Posted: Mon Jan 28, 2008 11:38 pm Subject:

Evelyn. If you stay in contact with the payday loan places and make an effort to pay it off, even if a small amount they probably will not put you in jail. I think they would only take that kind of drastic action if you ignored them and did not make an effort to pay them back.

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