Given the fact that payday loans are usually small and the debtor has the capability of paying it on his pay-day, I think if a debtor keeps on delaying the payment; the threat of pressing criminal charges can be an effective one. Because the money is not much and a debtor would try his best to pay back the loan in order to avoid facing criminal charges for such a miniscule misdeed.
Preying upon the poor is getting really out of control. Secondly, actually filing charges will do nothing. If a debtor goes to jail, then they can't repay their financial debt. In my experience, most people prefer to not be in debt, and would gladly pay off any debts they have if they had the means.
The point of payday loans is to keep people coming back. For goodness sake they sometimes end up taking loans to pay off their loans because they do not have the money. It often comes down to choosing between their loan or their rent. Threatening criminal charges womt magically make them have the money to pay it back. It's just cruel and heartlesa. There is a reason we dont have debtors prison anymore. Any payday loan office who threatens this needs a visit or too from Jacob Marley and the three ghosts.
Those who should have charges pressed against them are the companies who gave the payday loans. Someone who is so down on their luck and requires a payday loan, is not in any situation to get out of a growing hole of debt. Payday loans are only adding to the ever growing debt burden people are under.
With as much debt as the American people collectively have at this point in history, it's no wonder that debt collection has grown into such a large industry. But this growth has been accompanied by an increased awareness of the legal limitations faced by debt collectors. Put another way, people now know what rights they have and whether the debt collector is telling the truth or not.