I took out a payday loan about 5 years ago...once it was paid they kept taking money out of my account and the bank told me to close my acco...

Question

I took out a payday loan about 5 years ago...once it was paid they kept taking money out of my account and the bank told me to close my account and reopen a new one so I did....well i guess when they went to take more money it came back that either there were insufficient funds or the account was close....they got ahold of me today and said that they are taking me to court for writing a fraudulent check and breech of contract. I never wrote them a check and i feel i fullfilled my part of the contract they are saying that i still owe fees. I don't have any money to pay them i am on unemployement not sure what to do

Answer

I do not know when you last paid, but if it was more than 4 years ago, any possible statute of limitations has expired if you took this out in PA.

Even if it has not, they cannot sue. Their threats of "taking you to court" are a joke. If they want to sue you civilly, they will need a PA attorney. However, this is like a gambling casino trying to sue where a gambler does not pay his debts. Sure, they could sue in theory, but gambling is illegal so they don't. Kind of the same thing with payday lenders. Only lenders who are registered with the state are permitted and I am sure this place is not registered.

I don't see any criminality here, so I would not be afraid of any threats about alleged fraudulent checks. .

Contact the PA attorney general and file a complaint.