Defaulted PayDay Loan

QUESTION: Can I be sued in the Texas for a defaulted online payday loan?

I taken out a few payday loans online and pretty much got in over my head paying them back ! Can I be sued in Texas?

ANSWER: Most payday lenders do not sue in Texas. Having said that, they are certainly entitled to sue you if you defaulted on a loan.

I would be curious to know who is threatening the lawsuit and whether they are a “usual suspect” – – the kind of payday lender that actually does file suit in Texas. If they are not customarily in court, then their threat is illegal, and possibly a violation of either the Texas Debt Collection Act and/or the Federal Fair Debt Collection Practices Act. The collection industry for payday lenders is infamous for being abusive. I would suggest you keep track of all collection phone calls and keep all of the collection letters.

If the threat to sue is in writing, I would suggest you forward a copy to a consumer rights attorney. If the threat to sue is made verbally, you might still want to talk to an experienced consumer rights attorney who can do a bit of research and find out whether this collector is blowing smoke, or not.

Finally, you might want to have a look at your credit bureau reports through (That is where you can get your credit reports for free.)

This information is provided for educational purposes only. There is no attorney-client relationship with Karni Law Firm until a contract is signed by the attorney and the client.


Did you know you can ask a debt collection company to stop calling you?

The Federal Fair Debt Collection Practices Act (FDCPA) gives consumers the right to request that a debt collector stop any and all communications with them regarding a purported debt, so long as the request is made in writing.

All you have to do is send a letter, by FAX and/or CERTIFIED MAIL.  The body of the letter should simply say:

“Please stop contacting me on the purported debt that I owe with Bank Name, account #__________________.”

Oftentimes, consumers write long and complicated letters to the collection industry.  In order to get your point across, keep your letter short.  A request for a collection agency to stop contacting you is quite different from a dispute letter.  If you want the bill collectors to stop calling you, that is all you need to write in your letter to them.

Make sure to reference the account and account/reference number in your letter.  Keep a copy of the letter along with your fax transmission/confirmation page or certified mail receipt for your records.

If the collection agency continues to contact you after you have proof of their receipt of this letter, they may have violated the law.

But beware:  in some states like Texas, the debt buyer might stop contacting you, but they are not prevented from suing you, unless the debt is beyond the statute of limitations.

You should also note that original creditors (as opposed to third party bill collectors) are NOT obligated to stop contacting you under Texas or federal law.

You can find a consumer attorney at .