Can you go to jail in texas for not paying a payday loan?
Question by James G: Can you go to jail in texas for not paying a payday loan?
I cant pay these loans back and I have post dated checks with the payday loan companies. Im afraid they could prosecute me for the bad post dated checks. What is going to be the best way to handle this situation?
Best answer:
Answer by Gatsby216
Immediately send them a letter via certified mail, keep a copy for you yourself.
State that those post dated checks should not be cashed and you would like them returned to you.
You could put stop payments on those checks, or close the account. Again you could put that in your letter.
I am not sure how that works, as this is more a loan, rather than the normal bad check problem.
But it is a good question, and you need to protect yourself.
Know better? Leave your own answer in the comments!
No, you cannot go to jail. Short term payday loans do not show up on your credit report and while you can be taken to court, the most you will have to deal with is repaying the loan in addition to the lawyer/court costs. Let’s be honest though…no loan company is going to take you to court.
My advice would be to contact the place where you got your loan and make a deal with them. Also, you can apply somewhere else for another, higher loan to repay the first one you got and work out a special repayment plan. Not every loan company demands repayment within two weeks!
You can search online for a local loan center where you can go to ask the questions you need answers to. Check out http://www.paydayfinder.com. They have every loan center in america.
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You cannot prosecute someone in texas for theft by check of post-dated checks. As a matter of fact, post-dated checks are specifically exempted from the “theft by check” statutes
Just work out a payment plan,
I know that certain states, they can sue you and take you to court and they can put your account in collections and report it to the credit bureau. I don’t know about the jail part, it depends on the state
The can, and probably will, sue in civil court for the value of the loan. In the US, ONLY the DA can file criminal charges. No sane DA will file criminal charges over a payday loan without OVERWHELMING evidence you never intended to repay the loan. The entire business model of payday lenders is KNOWINGLY accepting post-dated checks when they KNOW you don’t currently have the funds to cover them. You did NOT deceive them.
you will not go to jail for not paying.. but they can take you to court or garnish wages/freeze bank accounts.
The bigger issue though is the post dated checks. If you wrote them knowing you would not be able to cover them you can go to jail for that – writing bad checks. Also, if you close the account without talking to the payday people about those checks (ie – get them back) they can still try to cash them and could result in the same issues of bad checks/bounce.
Best route would be to talk with them directly and resolve your concern
The issue is not that you failed to pay the payday loan, it’s that you issued bad checks. That’s technically a crime, so in theory you could go to jail. In practice it’s far more likely that you’ll get charged overdraft fees by your bank and/or have your checking account closed and go on a list of people whose checks are no good.
I would contact your bank immediately and stop payment on these checks. It’s better to deal with the problem immediately than to have the payday loan company try to cash the checks and have them bounce.
If all you had done is fail to repay the loan, then you wouldn’t be in any danger of jail at all. They eliminated debtor’s prison in the 19th century.
they can prosecute you, but jail is probably not the result.