More details to this question:
I have taken out multiple payday loans when I was expecting a sum of money, but that didn't go through due to a family emergency. I have not paid anything on any of the loans, nor can I afford to. Can I get arrested for fraud for not paying them?
1 ANSWER
The simple attorney answer is that it depends. Fraud requires intent. If at the time that you took out the payday loans you intended to defraud the company and default on the payments then it would be a crime. If the money is simply unavailable due to unforeseen circumstances, then there is no crime but you are liable to repay the loans. Regardless, it would be difficult for the prosecutor to prove intent based on the question. If you are being harassed by the pay day loan company and they are making threats of criminal prosecution, the company may be committing a crime by violating federal fair debt collection laws.
Answered on Feb 17th, 2012 at 7:59 PM