arrested!

okay what state are you in?

What type of fraud did they say it was? I don't get how they could just toss you in jail without any more information.

I live in Colorado and they said it was fraud-insufficient funds. I never got called from anyone about a bounced check though.

hottanya -

I'm sure it's upsetting to go through this. Is it possible that you moved or changed addresses or phone numbers in 2005, which might have caused some of your mail or phone calls not to get to you? It's possible that a notice was sent to you about the NSF check that you didn't see or might have overlooked.

I hope you are able to work this out. Let us know what you find out.

oh man

your thoughts, beauty?

Colorado does have this in it's laws . . . Criminal Action: Prohibited (Unless the consumer's account was closed before the agreed upon negotiation date)

I still don't see someone being arrested for an NSF . . . If that were the case the courts would be full of people! You need to get more info and find out what this is about . . . . That is really scary info to hear . . . .

ANd basically (from what I think) In Texas, since it's a post dated check, they cannot file fraud since they KNEW that the money, at the time, wasn't in the account. So I think in TX you're safe from a PDL arrest, am I right?

Up until now I'd thought that you couldn't be arrested for defaulting on a PDL . . . Some states may have some weird check laws that may allow them to file charges . . .

I'm assuming this would have to be a storefront PDL. Some states do have pretty stringent NSF check laws that allow for prosecution and fines, even jail time if the check is big enough, or there are enough of them written by one person. Our local newspaper publishes the circuit court cases every week, and every week there are several bad check cases prosecuted - they end up paying the face amount of the check plus fees and court costs. This is only after the company receiving the bad check attempted to collect it on their own with no success.

so u cant get in trouble from the loan it self just the fees that are put on your account? NSF fees thsi worries me cause washington mutaul closed me our at 639.00 nsf fees which is now being collected by ERS solutions.... anyone know anything... I wrote a check for 18.00 to pizza hut that bounced what about that....

Tasha - I think what the original post was asking was about a NSF check written to pay for a PDL - but I'm not entirely sure.

Are you asking about your bank account being closed with NSF charges? I don't know if that will end up in court, but it could possibly stop you from opening another bank account if you don't get it paid off and cleared.

If I've misinterpreted your question, please let me know - thanks!

Yes i am asking about my account being closed with nsf fees?

I know that here, they do prosecute for NSF fees. My youngest son was stupid and thought he had money in his account because he overdraft protection, so he spent it, resulting in NSF fees. He was eventually contacted by an attorney to get it cleared up, or else. We went to the bank and made payment arrangements with an officer and he got it paid off. ..KAren

Tasha - are you making payments to the collection agency that is collecting the NSF debt? If so, I wouldn't be worried about arrest or prosecution. They just want their money back, so they'll accept monthly payments, for the most part.

If a check is written and the amount is over $500, the check bounces and the check writer cannot be located and is non-communcative a warrant can be put out for their arrest, This is a felony in the state of Colorado

fraud by check. CRS 18-5-205

Less than $100
Class 3 Misdemeanor

More tan $100 but less than $500
Class 2 Misdemeanor (includes aggregate of 2 or more checks within 60 days)

$500 or more
Class 6 Felony (includes aggregate of 2 or more checks within 60 days)


also includes 2 prior convictions - fraud by check

Non-existent account
Class 6 Felony

Bank account closed 30 days or more
Class 6 Felony

Ok, so I went down to the city hall and got the scoop on this fraud thing. It wasn't a payday loan, it really was a bad check, just a slip of my accounting. The check was for $117.00!!!! I think the reason why there was a warrant issued was because it was written to the city of Durango, which is where I live and were they issued the warrant. They didn't even try to call or send a letter or anything. It is all taken care of now, I just wish they would have informed me in some way.

were your pdl off of the internet or a store front?

oh my god. we really have to be more careful, i am horrible with my finances. thank you for sharing, it sheds light and raises awareness.

I did not write any checks for any amount the loan companies kept hitting my account causing nsf fee from the bank!

Online loans

I am trying to understand this---so it was a check that you wrote, the check was returned unpaid, you were never notified of it and a warrant was put out for your arrest? I am glad that you found out WHAT is was and were able to take care of it!

You have to know your state's laws. Some states will allow for prosecution for defaulting on a licensed payday loan company if you close your account or put a stop payment on the check. One state is Texas.

What about California?

I know i cant get in troublr for a defaulted payday loan but im talking about the fees that the bank raks up for nsf...

Criminal action is prohibited in CA,
http://www.paydayloaninfo.org/state_detail.cfm?id=CA

Plus in order to press charges there would have to be criminal intent, if a person goes to a few storefronts in one day and before the next payday closes the account or stops payment on the checks, well there is your criminal intent, it is obvious the person had no intention of paying back these pdls. And if you take the loans out with false information, that would be fraud.

Thanks Steelers!

Tosha, if you owe the bank NSF fees then they will eventually close your account and send you to collections if you don't work out a payment arrangement with them. Also you will be reported to Chexsystems

Thanks Steelers!

Here what I have found out about NSF checks and PDLs.

Most of the time, the bank will pay for the NSF check unless there are several of them and then the bank will send it back to the company. The company will then contact you (either by phone or mail) to request payment (plus the NSF charge). If you fail to answer their request, then they can turn you over the District Attorney and then they can request payment from you. Failure then to comply with the District Attorney's office can then lead to legal action and yes, you can be arrested for writing a bounce check which is considered to be theft.

Now, I don't know what is this young lady's situation who wrote this post. However, I have known of people (including myself) who have written checks and have had them bounce and have been contacted by the company and then by the District Attorney's office. However, and knock on wood, I have never had the trouble of checks bouncing and having been placed in jail for it.

But yes, you can go to jail for writing bounce checks.

Did this happen to be a store front lendor?

Usually the only case where you will get arrested is if you use a store front lendor, and wrote an actual check. If the check bounces, and you aren't willing to make restitiion on the check, then they can turn it over to the district attorynes office, who in turn will pursue legal action and have a bench warrant out for your arrest. They'll never come knocking to your door.

Regards
Mike

I know that in Ohio that you can not be arrested or charged criminally for defaulting on a pdl. It is considered an unsecured loan and you can't be charged on a post dated check. I received that from the Division of Financial Institutions and the Attorney General's Office. Keep in mind laws vary from state to state and there are states that do allow for prosecution for defaulting on storefront pdls. But bouncing checks is another story, usually the prosecutors office notifies you and gives you the opportunity to respond and settle within a specified time period and if you do not respond or settle then a bench warrant is issued for your arrest.

Karen, but in any situation there is time given to make amends. Alberstons, Wal-Mart, Costo, 7-11 Convenience Stores, Macy's, etc...they'll have their inside check recovery company apply the $30 NSF fee and mail you a letter. Avoiding the letter is what urges them to send it to the DA. It's rather a nice long process. People bounce checks. It's human to make a mistake from time to time. It's when you avoid paying back the check is what makes it become more of an urgent matter.

What town are you in Karen. I'm surprised the officer actually went with your son to the bank.

Anyone have any information on accusations of 'returned check' on a payday loan that originated through the internet where payments were to be drafted from a checking account, what state's law's would apply, the one you live in, or the one where the loan came from, etc? I'm in Oklahoma, and when I told this guy not to call me at work he stated by signing the loan I agreed to be called at work...any help would be appreciated.

bengaltoo -

Welcome to the forums! Can you give us the name of the company you are dealing with so we can help you?

First, the company has to follow the laws of the state they lend into - meaning the state you live in.

Second, go to http://www.paydayloaninfo.org/ and see what the law in your state says about payday loans.

Third, find out if the company you are dealing with is licensed in your state by going to your state's governmental website http://www.oklahoma.gov/ and go to the section dealing with financial and lending company licensure. You should be able to search and see if they are licensed.

Fourth, if this is an online loan, you didn't "sign" anything, in the physical sense. If this gentleman calls back, I would ask him to send you a hard copy of what you "signed".

Also, since you've registered with this site, a consultant from your area will be contacting you soon to discuss debt consolidation or settlement. If you feel you do not need their services, please let them know when they call.

From what I understand in my state, you can't be arrested for fraud on an NSF except under a few circumstances. 1) the amount was over $500, 2) there were multiple NSFs, or 3) the account was closed but checks were still being written on the account.

It is United Cash Loans. I will check out the information you gave after work today. My biggest concern is him calling at work, this is definitly a debt that needs to be looked into, if it's legit then it was several years ago before a divorce, bankruptcy, etc. Any statute of limitations on collections of these?
Thank you again

What was the amount the account was overdrawn by?

I know PDL's will keep trying to put through payments as long as the account stays active which can rack up.

I did not think there were any States that considers post-dated checks or checks written to secure loans as fraud.

The account was never overdrawn. The checking account was closed because of divorce. I never gave a physical check to these people, it was done online. If I recall this correctly, again a long time ago, 4 or 5 debits were made to my account. The account was closed and I figured I would settle with them but lost track because of the stress and upheaveal going on at the time because of the divorce...life got in the way I guess. I asked this guy yesterday to send me a copy of what I signed and what he said I owed and I told him I would look into it. That is when he got threatening, said I needed to call my local DA and find out what happens to people who bounce checks and be ready to be arrested. He said he wouldn't send any verification of the loan to me and that he would continue to bother me at work because "I had agreed to it". I just really need to know what to say and if it's true about them being able to view this as a bounced check, I'm sure he will call today.

Bengaltoo -

They cannot arrest you for defaulting on a payday loan. This is a typical threat. Here are some other threads on this site that talk about their shady practices:

www.debtconsolidationcare.com/settlement/about19725.html

www.debtconsolidationcare.com/settlement/illegal-threat.html

Please don't worry about it. I would do exactly as the guy said - go ahead and call your DA and ask him what happens when you close your bank account and the UNLICENSED payday loan company tries to take you to court over it. While you're on the phone, call your state's Attorney General and discuss filing a complaint with them. THEN....call this guy back explain to him this his unlicensed company is going to be under investigation by your state. Expect yelling, screaming, and threats.

If this company is unlicensed in your state (from what I see, they don't show up on any licensure lists for your state), then their "contract" is null and void. He started getting rude with you when you asked for what you signed because it doesn't exist.

How long ago was this loan taken out, and how long ago did you close your account, if you don't mind me asking? The SOL in Oklahoma on unsecured debt is 3 years for an oral contract.

The divorce was final 2 years ago, so I'm guessing between 2 and 3 years. I'll check back in after work today, thank you for your help.

No problem, Bengaltoo - let us know what you come up with. Hope your life is better these days.

So, if I read this correctly this had NOTHING to do with a PDL right? This is a very confusing thread and some could come away thinking that you can be arrested for not paying a PDL.

I do have one question for the guest with the NSF. Banks notify you about NSF's. Most places deposit the checks twice, so there would be two notices from your bank. Also there are fees involced each time a check is NSF. I don't understand at all how you could not have been notified. Who is your bank because I think that is a problem

You can be arrested for writing a check on a closed acct.. NOT for overdraft. if a check is presented to a bank and the account is closed you can be charged with fraud..
even if the check is to a PDL company.. stop payment is different. I was there many years ago.. I also found out when stop for a traffic stop.. But I was able to pay off the check and have the charges dropped. I showed why my acct was closed and it had to do with a break in to my home and checks stolen I was also attacked so the police had the file and the judge understood what I was doing. the total of the checks I was arrested for was no more then 150.00.. i think it was 3 checks, I never knew they were outstanding considering what I was going through it was the last thing on my mind. BUT you can be arrested for acct closed NOT NSF..

I am also finding the thread a bit confusing. My situation involves an online payday loan company (United Cash Loans). I never wrote any physical checks, just signed where they could debit my checking account. The guy calling me states this is the same as writing a bad check and I could be arrested for it. I was mostly wondering if this is true, again I'm in Oklahoma and wondering which law applies. My checking account was closed due to divorce and I know there were at least 4 debits to my account before it was closed. I don't even have copies of those bank statements anymore. Again, when I asked him to send paperwork verifying the debt he said he didn't have to. He even went as far as demanding a credit card number so he could "take care of this right now", obviously I did not comply.

Help???

Benagaltoo -

you can't be arrested for it. Like we've mentioned in the other posts above, defaulting on a payday loan is not a crime. Neither is defaulting on other debts. You cannot go to jail for defaulting on a payday loan.

you can only get in trouble for WRITING a bad check

I think PDL Never Again is right. Writing a check on a closed account is knowingly writing a fraudulent check, and it would make total sense for an arrest, while an NSF check could be just a case of bad math.

Also United Cash Loans will threaten everything. They are not legal in m ost states and they know it. They are a aka for Rio Resouces. Send in complaint to your Attorney General consumer division office. KYSIDE38