Payday loan company says suing my friend?Any advice are they for real?

My best friend took out a payday loan at ace cash express and was paying on it but had to stop as she could not afford it anymore well they called her the other day and said if she did not return the phone call they would send over a process server to serve her papers for court, they said she is charged with fraud..she called them back and they want money now she asked could she start paying next month and they said no if she does not pay someone would be over in the next 24 hours??We live in texas does anyone know when they serve you do they already have the court day as she needs to take off from work is this does happen..thanks

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  • Anonymous
    8 years ago
    Best Answer

    Simple solution pay them backk.

  • Jane
    Lv 4
    4 years ago

    If you wrote a bad check, that's bank fraud and you can be arrested for that, not just sued. If you closed your bank account specifically to prevent them from collecting their debt, then that's fraud as well You can be sued in civil court for defaulting on a loan - it happens every single day. If you go to court not only will you owe the full amount of the debt plus all accrued interest, but you will also have to pay the winning side's legal fees. Your wages will be garnished until the full amount is repaid Did you make ANY attempt to renegotiate the payment terms of the loan when your circumstances changed? If not, that was your biggest mistake. You should have informed them BEFORE the loan was due about the change in circumstances to try and negotiate a revised repayment plan. You can't just not pay a loan for a year then expect it to disappear and not come back to bite you. Do you know what the compounded interest is on a payday loan? It can be 4000% APR If you gave your friends as a reference on your loan application, then they can call them. Otherwise how would they know who your friends were to begin with?

  • 8 years ago

    Fraud has nothing to do with this. Fraud is a crime. The criminal court system deals with crimes; the civil court system deals with people suing each other.

    If your friend lets this go to court, Ace will sue her in civil court. The costs they incur will be added to the debt. She will probably lose. Then she will have to pay the amount she owes, plus costs.

    Since she offered to make a payment plan and Ace refused, this could work in her favour ever so slightly. If the judge had a good day, a small part of those extra costs may not be charged to her.

  • 8 years ago

    Well, first of all...they have to find her to serve her. Tell her to not sweat it. They just want to get paid. They are not going to take her to court, that's just a scare tactic. It will go to a collections agency, then the agency will attempt to contact her to get payment. (The collection agency buys the debt, and then will come after your friend for payment.)

    Understand?

    So lets say your friend owes $1,500....the collection agency will "buy" that debt from the payday loan company for pennies on the dollar...or probably around $400. They will then go to your friend and say, "pay us $600" (or however much they try to get) "and we wont put this on your credit."

    It's not the worst situation, and they are just trying to scare you into paying. Stand tall against these loan sharks!

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  • 8 years ago

    Lenders will sue her in civil court and they will always win. She is not only going to owe the amount of the loan plus ALL accrued interest since the due date, but she will also have to pay their court fees when they win which is going to cost her at least $3000 mrore than she owes now

    She can't start paying in a month - she is already overdue. She needs to start paying something NOW and come up with a plan to prevent them from taking her to cour

  • 8 years ago

    It is sad that your friend had to get involved with these shady characters. I am sure they are charging her exorbitant interest besides. Also beware of those people on TV who offer to put $5000 in your account the next day. I think this company is using scare tactics that should be reported... maybe to the Better Business Bureau? Wishing your friend the best of luck in finding a solution to this problem.

  • 8 years ago

    Not sure what the law is , however I do know U can’t get blood from a stone ( Nana would say ) more importantly if she does not have they can’t get it. I say have her call back and try to speak with another agent or supervisor on the matter.

    Source(s): life
  • Anonymous
    8 years ago

    It's nothing like the consumer complaints reported at http://www.callercenter.com. :) It'd be best if your friend can discuss this more thoroughly with the person she owed the money from.

  • Betty
    Lv 7
    8 years ago

    can she declare herself bankrupt ?

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