Recently I failed to pay my payloans. I'm currently filing Chapter 13 to pay back all my debts. I have one month left of payments towards my bankrupcty. I received a call from a payloan company treatening to have a police come arrest me at my job. I wanted to know is this legal? Should I pay the loan off before my court proceedings.

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Originally Posted by melvin05

Recently I failed to pay my payloans. I'm currently filing Chapter 13 to pay back all my debts. I have one month left of payments towards my bankrupcty. I received a call from a payloan company treatening to have a police come arrest me at my job. I wanted to know is this legal? Should I pay the loan off before my court proceedings.

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I used to work for a payday loan company. The one I worked for was a member of the CFSA and saying we would have police come to your job - or any type of threat - was not company policy. I don't think that is legal for them to say.

Not only is it not legal for them to say but it's downright bogus. The police cannot arrest you for failure to pay a debt. The practice of arresting and imprisoning debtors stopped centuries ago.

Do you have an attorney for your bankrupcty? If so, when collectors call direct them to your attorney... that should stop them from harassing you.

Most payday loan places are one step form a loan shark, and not always a step better.

They will lie and cheat and fraud you any way they can to get paid. Now some used to get a post dated check, that they would run though as a NSF check, thus getting the police invloved

I am in process of going through the legal "ramifications" of not paying a payday loan. Pay it off!! Asap! They get you to post date checks for a reason. They turn the check in and when it comes back no funds, they turn it over to the police. The results depend on amount of loan; $200 or below=Misdemeanor; $200-$50,000 = Felony. Say you get a loan for 500 with interest and their fees you end up paying around $620, which ends up as a class 6 bad check felony charge. Which remains on your record forever. Yes this means when you apply for a job/bank loan/ college loan for yourself or your children it sadly shows up and you WILL be turned down. If prehaps you can pay off before the court date, remember you can continue court date at least once, you can ask the lending company to drop the charge and it will be dismissed or unfounded. So my advice because I've been there DO NOT GET A PAYDAY LOAN THEY ARE NOT WORTH IT. Borrow money from a family member/ friend or sell what you can. Do not put yourself/family in this position.