Can a payday loan company sue me for writing bad checks?

About a year ago I took out a $300 payday loan from Hydra Financial I. Due to life circumstances I was unable to repay the loan and had my bank stop all debits from this company. Last week I received a phone call from a company stating that they are representing Hydra Financial and I am being sued for writing bad checks. I asked if I could do anything to avoid going to court and they said I could set up a payment plan but had to make the first payment that day using a credit card not a bank account number. This company had also called several immediate family members and also a friend claiming they were trying to locate me. Is this something that they can actually do or is it a scam?

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  • 6 years ago
    Best Answer

    The can take this to the DA and yes you CAN get done for writing bad checks.............suggest you sort this out before it becomes a criminal offence rather than it just screwing up your credit.

  • 6 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?

  • 3 years ago

    Hydra Payday Loan

  • .
    Lv 7
    6 years ago

    Of course they can. You're a thief, you wrote a bad check and prevented them from taking their money on contract you agreed on.

    So they hired a lawyer. That lawyer - who has been calling family members and you - is working to get the payday loan company's money back.

    These people don't mess around.

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  • 6 years ago

    From what I know of payday loans, they are mostly scams. Now, I can't say for sure about the company you used, but most in general are. Google them and see what you find. If it's a lot of shady information, I'd say there isn't much they can do and it's all scare tactics. A lot of them operate illegally in which case the last place they want to go is to court.

  • Chuck
    Lv 7
    6 years ago

    Yes, they can but technically you weren't writing checks to them.

    If you knew you couldn't pay, why didn't contact the company before they hired a third party to do their dirty work?

  • 6 years ago

    The fact that they are harassing your family is not good. They have some legal ways to sue you, but I am pretty sure that harassing is not allowed. Try to talk about this with them once they call you back.

  • Erin
    Lv 7
    6 years ago

    They can do that. And what you did was ILLEGAL. You can actually go to jail for that. So just pay it off or you may end up in the slammer. Writing bad checks is stealing.

  • Fred
    Lv 7
    6 years ago

    I have a news flash for you dude..... writing checks that you know you don't have money for... that's a felony. You can be charged for forging your own name. And yes... everything they've done is legal.

  • LILL
    Lv 7
    6 years ago

    I suggest you start paying ASAP. Legally they can file criminal charges against you for check fraud.

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