Payday collection co. that threatens money laundering charge

anonymous · 2008-02-27T14:34:04-08:00

Duplicate post removed as per forum rules. The url of the original post is given below. - Jason http://www.debtconsolidationcare.com/collection-agencies/threatens-charge.html

cmpolk - they can't arrest you, send you to jail, etc. Don't pa

cmpolk - they can't arrest you, send you to jail, etc. Don't panic. This is a common threat used by payday lenders who THINK they know the law. They don't. Chances are very good that you are dealing with an illegal payday lending company - one not licensed to do business in your state (or possibly even this country). A legal, law-abiding lender would never make the threats you are describing - they would know better.

If you are certain you have paid off all of your payday loans, you have nothing to worry about. But the best thing to do is the following:

-make sure there are no unauthorized debits coming out of your bank account (if all loans are paid off, there shouldn't be)

-write this company a Cease and Desist letter demanding that they stop calling you at work (samples are available on this site in the Do It Yourself section)

-If there is any possibility that you owe anything on an old payday loan, request validation of the debt they say you owe. If they are a legitimate, legally-operating company, they will have no problem doing this.

-find out the laws in your state regarding the recording of phone calls. If possible, record the phone call the next time this person calls you. His threats are illegal. A collection agency cannot threaten legal action that they have no intention (or ability) to carry through. (i.e., they can't threaten to sue you if they don't intend to do it)

-file a complaint with your state's attorney general (or the government agency that supervises collection agencies in your state) against this collection agency.

Best of luck to you - keep us posted on your progress and feel free to ask any questions you may have.