[smalltowngirl]

Hello! I live in Canada. Over a few months I borrowed money from a payday loan store and paid more than 3X the amount borrowed back. On my final payment I stopped the cheque as I could not afford to pay it. Now an employee of the store has called a family member, given them full details about my loan and threatened to have me arrested for fraud.

Now I don'tknow much about law so does anyone know:

a) I know collection agencies in Canada can't give out information to family members but does that apply to loan employees as well and who can I file a complaint with?

b) Can employees threaten to have you arrested for civil matters, especially to family members?

c) Can an individual go after a payday store for ciminal interest in Canada in Small Claims Court? I know there are class action suits out there but I want to put an end to the harassment now. I know there is a clause in the criminal interest section of the criminal code that mentions something about permission needed from the Attorney General to sue for criminal interest, but it is hard to understand.

[ScottGem]

I suggest you consult an attorney. I may very well be the lender overstepped the bounds in discussing the loan with someone other than you.

But the fraud thing may not have been an empty threat. By putting a stop on the check, you may have opened yourself for the fraud thing. Which, in turn may have allowed them to discuss the fraud.

[CaptainForest]

To answer your questions more appropriately, you need to indicate what province you live in as rules for collections are a provincial matter.

That will help question A in who you need to report them to.

As for question B,
Sure, why not threaten? They can't actually have you arrested since not paying you bills is NOT a criminal offence anywhere in Canada.

As for question C,
I have no clue, but I believe the maximum interest you can be charged is around 60% or around there. So if they are charging you more than that, that is where lawsuits come in.

[smalltowngirl]

A few more facts:

I live in Ontario.

I initially borrowed $5000.00 and paid back a total of $13500.00 in principal and interest. There was recently a secondary loan of $1000.00 of which payment was stopped.

Again I have now learned there is a class action suit against this company for criminal interest, but I am wondering if I can file my own small claims suit.

Thanks for any further advice.

[ScottGem]

You can become part of the class, or file on your own.

I must disagree somewhat with Forest. Your stopping a check that you sent could be considered fraud.

[CaptainForest]

I must disagree somewhat with Forest. Your stopping a check that you sent could be considered fraud.

Scott,

When did I say her stopping a cheque isn't potentially fraud? In fact, I didn't even address that issue.

[CaptainForest]

Take a look at the Ontario Ministry of Government Services website, specifically on Collection Agencies here:

Collection Agencies - Government of Ontario (Canada)

Scroll down on the main page to “If I feel I'm being treated unfairly by a collection agency, what can I do?”

Or you can click on <Collection Agencies Act> and read the act for yourself.

See The Consumer Protection Branch - Government of Ontario (Canada) on how to report them.

[ScottGem]

Scott,

When did I say her stopping a cheque isn’t potentially fraud? In fact, I didn’t even address that issue.

Sorry if I misinterpreted, but your comment about not paying bills not being a criminal offense intimated that stopping the check was not a problem.

[CaptainForest]

Sorry if I misinterpreted, but your comment about not paying bills not being a criminal offense intimated that stopping the check was not a problem.

That's OK.

What I meant was the fact she doesn’t pay her bills is not a criminal offence. That is, no more debtors prisons.

I didn't get the impression it was fraud since she didn't take out the loan with the purpose of not paying it back ever.

[smalltowngirl]

I had intended to pay it back. As I mentioned earlier I had already paid them 3X my original debt.