Could a person be sued and jailed for defrauding a financial

Submitted by prince76456 on Mon, 07/14/2014 - 21:37
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Got contacted by a paralegal stating that I owed a cash advance (payday loan) place over $1100.00 and that if I didn't pay them $590.00 that I would be sued for over $2000.00 and could be jailed for defrauding a financial institution. This doesn't kosher to me. Funny thing about this is, the checking account that I had went into the red in 2005 and then the account went into 'limbo' where I could make deposits on what I owed the bank but not write checks or such. Are cash advance places even considered financial institutions in the state of Oklahoma? Does this sound hinky to anyone else?