Las Vegas, NV – A Las Vegas resident was threatened by “investigators” for failure to pay a payday loan. They stated that, “they would get my warrant out, if I don’t pay the loan.” The borrower was worried about the threat of jail for failure to pay on his loan.
There is no jail time for failing to repay a payday loan.
First, a payday loan is private debt and is not handled by law enforcement. The Police Department or the District Attorney does not investigate claims of failure to pay on payday loans. It is a civil matter and the lender may sue the borrower if it believes that there has been a breach of any agreement. It would have to put the borrower on notice of any such lawsuit by serving a Summons and Complaint upon the borrower.
In most instances of payday loans, the borrower is required to write a post-dated check to secure the loan. If the borrower does not pay, the lender cashes the check. If the check bounces, more fees are added.
In many instances, it is unlawful to write a bad check in the State of Nevada. Willfully writing a bad check with the intent to defraud may result in criminal prosecution. However, currently, the Clark County District Attorney does not prosecute for bad checks written to secure loans to non-gaming establishments, according to its Bad Check Handbook.
Therefore, any threat of arrest or jail for failing to pay a loan is simply as a method that debt collectors use to get payment from the borrower.
If you are being harassed or threaten by a payday lender, creditor or any other collection agency, please call my office for help.
I have helped thousands of people in Las Vegas and Henderson find solutions to their debt with Bankruptcy.