Quick Answer: Debt collectors cannot legally threaten arrest or jail time for unpaid payday loans, credit cards, or medical bills – these are civil matters, not criminal. While creditors can sue and garnish wages for defaulted debts, the threatening calls claiming police involvement are illegal scare tactics that should be reported to authorities.
“Dear Steve,
I’m in serious debt with payday loans, credit cards, medical bills. I hounded on a daily basis by creditors, collections agencies, and debt collectors claiming to be the police saying their coming to my job or home to arrest me.
I’m so scared that I have a nervious stomach, can’t hardly function, sacred to answer the phone for fear of additional threaths.
Each weekday I send one short email: one money story that caught my attention, why it might matter to you, and one manageable thing you can do with it. A couple of minutes, and a dad joke.
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Can they garnish my wages, take me to jail, give me a summons at work or home.
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WHAT CAN I DO TO GET SO TYPE OF RELIEF. THE ONLY MONEY I HAVE NOW IS FROM A PART-TIME JOB.
I CAN HARDLY PAY RENT, EAT. WHAT CAN I DO
Bill”
Dear Bill,
I’m so sorry to hear you are in this bad situation. Let’s get to the bottom of this so you can move forward and get on with your life.
Can you give me some additional information about how much you owe on the payday loans and if you anyone else and if so how much?
Defaulting on a debt can result in you being sued and having your wages garnished. However, you will not go to jail.
Please post your responses and follow-up messages to me on this in the comments section below.
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