Online Cash Loans: Can A Lender Have You Arrested

It was only recently that the state with the largest number of people who use online payday loan services passed a new law. It's Texas and what this new law says is that it is in fact a crime for a lender or a collections agency to "threaten" to have a borrower arrested if they default on a loan. So is it really a crime to not pay off a loan? Is it a serious crime? Can you be put in prison?

The simple answer here is that when you take out a loan it's done so with a written contract. Also unlike hundreds of years ago there are no debtors prisons, so simply put, "no you cannot" be arrested for not paying off a loan because it's not a crime. Now because it is a legally binding contract though, you can end up before a judge in civil court.

Now that doesn't clear you if you have somehow broken the law when you secured the loan because there are people in prisons right now who did just that and were caught. So now you may be wondering just what it is that qualifies as a crime here. Perhaps lying about how much money you earn or lying about your home address? What about lying to a collections agency?

No you cannot be arrested for either of those things because it's the responsibility of the lender to verify them. Now if the lender fails to verify your income or your address that is in fact his or her fault if they turn out to be not true. But there is a catch. That is that it is against to the law to alter or submit false documents when you obtain a loan.

So if you say fax in a false electrical bill or a falsified pay stub you most certainly can be charged with a crime and by the way loan fraud is quite serious. Still one more thing that you never want to do is submit any type of document that represents you as being someone else. Not only is that loan fraud, but it's also identity theft.

Now don't make the mistake of thinking that this gives you a license to get on your computer or phone and start contacting lenders with a pack of lies. This is because as stated above, you can end up in civil court which is none the less a court. Judges hate liars and it is the judge who decides how much you are going to in the end pay.

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