QUESTION
Can a payday loan company charge a person with fraud?
Asked on Apr 23rd, 2014 on Bankruptcy - California
2 ANSWERS
Yes, usually in the civil context of bankruptcy a claim of fraud can make the loan non-dischargable.
Answered on Apr 25th, 2014 at 6:01 PM
Debt Collection Attorney serving Chicago, IL
Partner at
Edelman, Combs, Latturner & Goodwin, LLC
2 Awards
Generally, nonpayment of a loan is not fraud. Not honoring the postdated checks or ACH authorizations that are typically issued in connection with such transactions is not fraud. The bad check laws do not apply to postdated checks. The only possible fraud is if you gave a postdated check on a closed account, misrepresented your identity or employment, etc.
Answered on Apr 25th, 2014 at 6:01 PM