Anonymous asked in Politics & GovernmentLaw & Ethics · 9 years ago

I took out several payday loans at one time and didn't pay them back is that a crime?

I did something stupid. I took out several payday loans over a three day period totalling less than $3000. The money was to help a friend to purchase a car. She said she would pay me back when she got her student loans and then she disappeared on me. I have no way of locating her. Now I'm stuck with the debt and can't pay any of it. So any suggestion to enter into a payment agreement would be worthless. I have a house and I attempted to take out a loan against the house to pay the creditors off but my credit is too bad to get a loan.

Now I'm worried that because I got all these small loans in such a short period with no way of paying them back I could be charged with a criminal offence. My 'story' doesn't sound so good, 'I did it for a friend who has now conveniently disappeared.' On the face of what I did it looks to me that I may be able to be charged. Am I correct and if so what would the charges be?


I'm in the state of Iowa.

7 Answers

  • 9 years ago

    Places that make Payday Loans will definitely, almost always, take it to court. You will get a summons and whether you go or not, they will probably get a judgment against you. Once they have the judgment, they can file a lien. And, once they have a lien, they will use the means to collect, that your state allows. I know Florida, and here the lien in the Public Record would make it impossible for you to sell property in your county without satisfying the lien. Additionally, the holder of the judgment would have garnishments available for 10 years, and after renewing the lien, an additional 10 years. I guess the best you can hope for is to go to court when they sue you and throw yourself on the mercy of the court. Honestly, it doesn't look too good. At least their interest will stop accruing and it will only accrue at the statutory rate. Good luck

  • 9 years ago

    Immediately contact the pay day loan people and tell them what happen work out a payment plan. Report your friend to the "police" you were just defrauded, and when you find her go get your car she is driving that you paid for. (if there was a car)

    If you knew at the time you had one paycheck and took out three pay day loans pledging the same check, you knew that your collateral the paycheck at the time of the 2nd and third loan was already encumbered, and that is fraud, there is no crazy friend defense. If you ignore them they will prosecute you when they find out work it out now. Full disclosure. Yes it is a crime and a tort (civil theft).

  • WRG
    Lv 7
    9 years ago

    Since you probably had to commit fraud in some way, even if it was simply lying on the application for one or more of the loans yes. Depending on the mood of the DA Grand Theft by Fraud is a possible charge.

  • Mutt
    Lv 7
    9 years ago

    I hope she at least kissed you when she royally screwed you.

    They will very likely take you to court and you may have your wages garnished until they are paid back.

    *EDIT* - They will threaten you with jail, but that's not likely to happen unless they can prove you intended to not pay the loans back when you took out the loan. They use many "scare" tactics, but in the end, it will probably just be a lawsuit.

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  • Dan H
    Lv 7
    9 years ago

    We don't have debtor's prisons in America. If they can prove fraud against you, then you could be charged with a crime.

    If you haven't paid the debts back, your charges are well over 10K now and rising. Those loans have exorbitant interest rates.

    You are likely headed for bankruptcy court, if you qualify.

    Good luck.

  • 5 years ago

    Criminal Record Search Database :

  • Anonymous
    9 years ago

    you are in deep doo-doo. they get a judgement and you are stuck. maybe lose your house.

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