QUESTION
I have a question I did a payday advance on line they were taking money out of my account I didn''t read the small print I just assumed that they would
Asked on Jan 11th, 2012 on Collections - Michigan
More details to this question:
take there money the next payday they didn''t the just took 65.00 they gave me 200. the 65 was what they were charging me the next payday the took another 65. ok the problem is I lost my job now they saying they are going to press charges on me for wire fruad and I''m going to jail if I don''t pay over 600.00 dollars. that what there lawyer said yesterday. she said it was more than that but they would take the 600. what I thought was kind of off that the lawyer said I could call her back because I was driving she said she would be there to 9pm then she asked did I have a debit card that they can post date a check I told her no somthing just didn''t seem right . what can I do I don''t want to go to jail.
1 ANSWER
There is no debtors prisons in the United States; you cannot go to jail simply for owing money. The issue with payday advances is that they typically charge a very high interest rate (sometimes over 300%) so there will be a lot of interest charges.
Based on what you are telling me, I would find it very unlikely that you spoke with an attorney; it was most likely a collector pretending to be an attorney. Under the FDCPA, these collection tactics are illegal but the law does not apply to original creditors, such as the payday loan store itself, only to third-party collection agencies. There may be a Michigan state law that applies to original creditors but you will need to contact a local attorney to figure that out.
Answered on Jan 11th, 2012 at 5:02 PM