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  1. #1
    Join Date
    Jun 2017
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    1

    Default Can You be Arrested for Defaulting on a Payday Loan

    My question involves collection proceedings in the State of Oregon -

    The last 2 days have been misery for me....two days ago my father (who I lived with years ago) received a phone call from a man who claimed to be an attorney in TX. He told my father that I owed on a payday loan from 2012. I will admit, there is a chance that I owe something from 2012 as I was a dumb teenager (still trying to pay off all of my debts).

    He mentioned that because I had a check (something about my finger print being on it), and they weren't able to collect funds that I would be arrested for check fraud, and malicious attempt to do something (I don't remember exactly). I called them the following day to receive more information and the lady I spoke to told me she needed to sign off on this judgement and it will be sent to the district attorney in my state to issue a warrant and prosecute me but she had about an hour before it needed to get completed.

    I told her I did not have the funds, and she would sign off on it and I would just have to deal with it from there. She had also stated that if I paid they would send me the evidence package and maybe something in there would "jog my memory". My father called not long after and told them that I needed something in writing before I would pay anything. They emailed a paper with a header "Oasis collection" in MO, and at the bottom it stated that this has been sent over to the attorney and his name and his number.

    The form that was sent me was very vague and didn't have a lot of information. I am going to try and get more information, and I will not pay anything until I know what is going on, but how can I determine if this debt is valid? I feel so dumb because everyone keeps telling me it is fake, but I can't help but worry!! I just need to know that my criminal record isn't on the line! Thank You in advance!

  2. #2
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: Help.payday Loan

    The threat of prosecution is illegal under the FDCPA:

    https://www.ftc.gov/enforcement/rule...tices-act-text

    It's also illegal under Oregon's debt collection statutes. See 646.639 through 646.642:

    https://www.oregonlegislature.gov/bi...rs/ors646.html

    You can file a complaint with your state's Attorney General. You also have the option to sue for the violation. Consult an attorney who specializes in suing collection agencies. The statutes allow for the recovery of attorney fees.

    Unfortunately, the statute of limitations in Oregon is 6 years for debts based on contracts so you are still within the time limit to be sued, if you haven't already been sued.

    If you've been living in the same county for the last 6 years check your local courts and do a search for your name. Same for any county you lived in back then or since.

    Also get all three of your credit reports from www.annualcreditreport.com to see if this debt is on them. Debts stay on your reports for 7 years so if 2012 is accurate, it should still be there if you owe it.

    These people may be nasty and acting illegally but the risk of a lawsuit could be very real, worse if there is already a judgment against you.

  3. #3
    Join Date
    Nov 2013
    Posts
    7,056

    Default Re: Help.payday Loan

    We don't put people in prison in this country because of debts.

    In order for there to be a judgment against you in TX, the creditor would have had to sue you within 4 years (SOL) of the default. If they did that and got a default judgment, their next step would be to domesticate the judgment in Oregon in order to collect.

    This story about some woman signing off on the judgment and some claim of fraud and obtaining a warrant by sending it to the district attorney is all bogus. It is said to scare you into paying.

    You should ask them to send you a copy of the judgment signed by the court. No judgment then no debt. I would ignore them.

  4. #4
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: Help.payday Loan

    Quote Quoting budwad
    View Post

    In order for there to be a judgment against you in TX, the creditor would have had to sue you within 4 years (SOL) of the default. If they did that and got a default judgment, their next step would be to domesticate the judgment in Oregon in order to collect.
    I think OP lives in OR and can be sued in OR within the 6 year SOL.

  5. #5
    Join Date
    Nov 2013
    Posts
    7,056

    Default Re: Help.payday Loan

    But the debt is in Texas, 4 years. I don't know for sure though. I couldn't find anything on Oasis collection but I suspect it is a junk debt buyer.

  6. #6
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Help.payday Loan

    Of course there actually could be the possibility of this being a criminal issue, depending on the details. Some states will prosecute this sort of thing if the check is no good and the maker does not make it good within an acceptable timeframe. If the op believes he may have skipped out on a bad check he might want to check for a warrant out of Texas.

  7. #7
    Join Date
    Oct 2014
    Posts
    8,238

    Default Re: Help.payday Loan

    Quote Quoting budwad
    View Post
    But the debt is in Texas, 4 years. I don't know for sure though. I couldn't find anything on Oasis collection but I suspect it is a junk debt buyer.
    The creditor or collector is in Texas. That does not necessarily mean that Texas would have jurisdiction to hear the claim. We would need to know more facts to determine that. Specifically, it matters where the OP was living when he took out that alleged pay day loan, how he arranged for the loan, and what, if anything, the contract says about choice of law and choice of forum.

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