Criminal charges on payday loans
Date: Mon, 07/31/2006 - 01:06
Defaulting on payday loans will result actions in a small claims
Defaulting on payday loans will result actions in a small claims court. This is not a criminal offense. The lender can file a legal case in the court with all the legitimate proof and the judge can ask you to pay the debt account after hearing your side of the story.
Since there are court costs and fees involved in filing of the case, you can settle the matter with the lenders outside the court. Which lenders are you having the loans from?
IF it is an online lender, chances of them going to court are no
IF it is an online lender, chances of them going to court are none. Most of the online lenders are violating state usuary and licensing laws. They also will not charge you with wire fraud, bad checks, etc. Keep in mind there is no debtors jail and this is their way of making you pay faster. The judges would have a field day with them. Now if it is store front lenders, they can take you to court and get a judgement against you.
Has there ever been a case of specifically an online payday lend
Has there ever been a case of specifically an online payday lender taking someone to small claims court or filing a legal case?
I haven't heard any online payday loan company having success in
I haven't heard any online payday loan company having success in filing the lawsuit. Most of them are heard violating the laws. Even if there is a legal stand, the judge will first look into your situation and after that ask you to pay the debt off in easy installments.
I doubt that an online lender would even try to take you to cour
I doubt that an online lender would even try to take you to court..They know they're breaking the laws.
Besides,when you signed the "contract" it usually contains an ar
Besides,when you signed the "contract" it usually contains an arbitration clause. Meaning they would take you through binding arbitration,not court!
payday loans
i was wondering if they could file criminally charges because im in debt with online payday loan companies. im trying to pay them off one by one. some of the companies have threatened criminal charges
Which state's judges sit there working out payment plans in smal
Which state's judges sit there working out payment plans in small claims court? My experience is limited to Pennsylvania and New Jersey, but in 12 years of representing both debtors and creditors I've yet to see a judge take time out of a busy docket to fuss over whether someone can afford to pay a $300 debt or not. They've always sent every contested case out with a mediator (usually a law clerk but sometimes an attorney) and, if no settlement can be reached there, heard the case and entered a judgment. After that it's up to the creditor to find some asset or income source on which it can enforce the judgment. Either the stone has blood or it doesn't.
There's a mythology on this site that it's automatic that the bo
There's a mythology on this site that it's automatic that the borrower's state law applies, no matter what the contract says. There's actually a great deal of legal support for the lender's state, too, and a major case is brewing in Kansas that may finally resolve the question. So I question the assertion that online lenders don't often sue because their "breaking all the laws."
Most of the online guys hold the same licenses in their home states that storefronts have. They tend not to sue borrowers outside their states because of cost-benefit analysis, not because of some fear that a judge in some other state might not take their side in an interstate commerce debate. (How much sense does it make for a Nevada lender to fly 2,000 miles to sue a North Carolinian for $300? Or to pay some local attorney thousands of dollars in fees - because of the constitutional questions involved - for that $300?) Ultimately, most end up selling the debt to someone else. If that someone else happens to be in your state, they may very well follow through with a suit.
I do agree that criminal charges are rare, but they have occurred in extreme cases. For example, there is a woman currently facing trial in Mercer County, New Jersey for taking 47 fraudulent loans from an online lender. She's facing several years in jail, but her case mixed both monetary theft (from the lender) and identity theft. (She used several different identities to obtain the loans.) A similar case (which tangentially involved a client of mine) is pending being presented to a grand jury in Raleigh, North Carolina soon.
lovechile.. It's me, finsfan..I can't log in.. Here's a qu
lovechile..
It's me, finsfan..I can't log in..
Here's a question for you..Let's say you live in California, and take a payday loan from a company that is NOT liscensed to make loans in the state of Ca. You default on that loan, and fail to make payment arrangements. That loan company can sell that debt to a collection agency that IS liscensed in your state, and that makes the debt no longer with the payday loan company, but with the CA? Wow, that's an angle that I know I have never even thought of. Thanks for pointing that one out.
Of course, in my opinion, if you make payments on what you owe and keep them, it shouldn't come to that anyway.