Anonymous
Anonymous asked in Business & FinanceCredit · 8 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.

Update:

I wrote postdated checks as requested by the payday loan people. Does that make it worse???

Update 2:

I wasn't trying to get any 'favors' out of this. We are both heterosexual females.

I knowingly took out more loans than I could pay back.

10 Answers

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  • 8 years ago

    First off, stop misusing the word "friend". This person saw you as a "mark" and manipulated you into forking over 3k. Sounds like you didn't know them very well, or were trying to impress them with the hopes they might sleep with you or have a relationship. Anyways...

    No, you won't go to jail or be criminally prosecuted for these loans. You will, however, have them hounding you for payment. Also, since you wrote checks, your bank account is going to be really SCREWED up due to all the NSF fees you are going to get from them depositing the checks or running them as a debit in order to get their money when you cannot show up with the full amount to pay off the original loan and interest and then re write the loan which just starts the whole cycle over. Since they will be screwing up your bank account, you are going to now risk losing that because your bank is only going to allow you to be in the red for maybe 30 to 45 days before they just close your account due to NSF and negative balances and send your info to ChexSystems. This will prevent you from being able to open a new bank account for 5 years. You would also still owe the bank the money for all the bounced check fees these payday lenders are going to cause you. Closing your bank account won't help either to avoid them putting the checks through. Your bank will just slap you with fees for not leaving enough in the account for incidental things that may come through afterwards.

    Time to find a 2nd job so you can put all that money towards this payday loan fiasco. Also, if this person was such a "friend" how come you don't know any of their family or friends so you can find out where they are? Do you know their real name? Can you Google and find them on FaceBook or something so you can figure out where they absconded to so you can take them to small claims court and sue them? LOL Thing is, you would have to prove that they agreed to pay you back and if it looks like it was a case of you being fond of the person it may be seen as you were giving a gift.

    At any rate, no, you won't go to jail.

    Source(s): These people here telling you they are going to "garnish" your paycheck need to go back a step. The payday lender at worst would send your account to a collection agency who would then pester you daily. They CAN choose to sue you. The above answer is WRONG when they state that judges will not award the money you owe to a payday lender! You signed a binding contract that is about 3 to 5 pages long. There is a section in that contract that talks about arbitration and going to court if you do not pay. READ that part! That is what they can do to you. They would need to WIN a judgment and a court order to garnish your wages, place liens on property or levy your bank account.
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  • 8 years ago

    Criminal charges could only be brought against you if they could prove that you committed fraud - that means you wrote the post-dated checks knowing that there would not be enough money in your account when they came due. In your case it does not sound like you attempted to commit fraud as you wrote the checks in good faith

    Do whatever you can to pay these loans off. They are not going away and the interest keeps compounding until you pay them off in full. So every day you are late just adds even more to the amount to be repaid. Sell anything you don't need - hold a yard sale, Craigslist, Ebay, etc. Pawn things you don't need right now. Pick up extra shifts at work or a second job for the short term. Borrow from friends and family. But every day you are late paying off these loans you are adding up to $50 per day to the late fees

    Also call the loan companies and try to negotiate new payment terms with them - that they stop compounding the interest in exchange for you paying xx amount by xx date, then a repayment plan. But if you are one day late they will add all of the interest

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  • Cindi
    Lv 4
    4 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

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  • Anonymous
    8 years ago

    First, debt does not land you in jail. Period. Anyone who tells you otherwise (like debt collectors) is lying to scare you. Many people get into trouble trying to help out family and friends who turn out to be deadbeats. It is a common mistake. Just be sure to learn your lesson...and don't do it again.

    Second, the other lesson you should learn is that payday loans are a no-no. If you can only get a loan from them, don't do it. For anyone, including yourself.

    Third, the tiny bit of good news about payday loans is that you are unlikely to face garnishment for them. They are more likely to turn you over to collections and less likely to sue you directly because judges are often reluctant to issue orders supporting payday lenders.

    Fourth, you should probably set up a new bank account at a different bank. The payday lender is likely to try to draw from your existing account as long as it remains open.

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  • Anonymous
    6 years ago

    You are able to instanly get a payday loan as much as $1000 applying this site: http://loans.servermatrix.org I acquired my payday loan despite the fact that I have really negative credit standing.

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  • 8 years ago

    Maybe, yes, maybe no.

    Owing money is a civil matter. You can't go to jail for owing money. Writing hot checks is crime that you can go to jail for. Did you write post-dated checks to cover the loans? Ooops!!

    Contact the payday loan operators and try to work something out with them.

    Good luck

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  • God
    Lv 7
    8 years ago

    YAY!!!!

    You got loans at some 600% APR!!!

    The interest that accumulates is some $1500/month

    Yes, you read right... 1500/month interest alone....

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  • 8 years ago

    You may lose your house, get ready for that. Sorry, everyone else answered well, I just needed to give you this heads up.

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  • 8 years ago

    Your wages will either be garnished.. or if you have to many garnishments already taken on you the next step is a lien on your house until you pay.

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  • ?
    Lv 4
    8 years ago

    eventually they are gonna garnish any paychecks you get until its payed back if you dont set up a way to make payments with them

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