I got a voice mail from this company stating that a warrant had been issued for my arrest. So naturally u called back to find out what the deal was. The guy told me that I had a warrant issued for my arrest for defaulting on a payday loan.
Knowing that it is against the law for a company to file criminal charges for a differed deposit transaction, I continued to press him for more information regarding the warrant. He could not give me any real information in regards to specific criminal code that had been violated and only continued to say that he was faxing the warrant to my home county and the police would be at my house waiting when I got home.
This is just a scare tactic that these collection agencies use to get your money. If you receive a similar call don't give them any personal or financial information. The state laws protect consumers from criminal action in defaulted payday loans. As long as you did jot provide fraudulent information to obtain the loan, the most they can do is file civil suit against you for default.
The fact is that default is a common occurrence on this type of loan due to the fact that the people getting these loans are in desperate financial circumstances usually, and this is their justification for charging outrageous interest rates after all. If you find yourself in these circumstances do not let companies like this one scare you into doing something that will only make your situation worse.
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