Can a pay day lender file criminal charges on an unpaid loan?
Question Details: They are claiming the checking account was closed so will be filing criminal charges. They claim the loan was originated 6 years ago. I currently reside out of state now. They are claiming I will be charged with felonies and will be picked up. Can they really do this?
You cannot go to jail for failing to pay a bill, unless the person you fail to pay is the IRS! In order to file criminal charges, a crime must have been committed. And the District Attorney/Prosecutor is the one who will ultimately decide to file charges against you, not the Pay Day Lender. Usually when crimes involve money, those crimes usually are based on some kind of fraud or theft. No creditor should be threatening any kind of criminal charges, as such a threat would violate various federal and state Fair Debt Collections Practices. Maybe in the end you coud be the one suing them!