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Edelman Combs Latturner & Goodwin, LLC Edelman Combs Latturner & Goodwin, LLC
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Protecting the Rights of Consumers For Over 25 Years


Question: My husband took out a payday loan. Someone called him at work and threatened him with a warrant if he didn’t pay $500 within the hour. Is this legal?

Answer: Absolutely not.

You cannot be arrested for nonpayment of a loan.

If the loan was obtained over the Internet from an unlicensed lender, it is not enforceable at all, and you may be entitled to substantial statutory damages from the lender (assuming it can be found and served). Check with the Illinois Department of Financial and Professional Regulation as to its license status.

No legitimate debt collector will call you and make a demand like that. It is quite likely that you are dealing with a scammer. Ask for a written notice concerning the debt and the collector’s address. (They are required to provide that within five days of their contacting you.) The statements made are a flagrant violation of the Fair Debt Collection Practices Act, although again it may be hard finding and collecting from the culprit. Call us and we may be able to identify the collector. In any event you should report calls like this to the Federal Trade Commission, Consumer Financial Protection Bureau, and state Attorney General.

Under no circumstances should you provide any banking or other personal information to such a caller.

We can help you both defend claims against you and assert your rights under the Fair Debt Collection Practices Act and other laws.

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