You cannot go to jail for not paying back a loan and moreover, there is nothing wrong in paying back using a money order.

I had taken out a payday loan around 3 years ago and completely forgot about it as I went through some dire hardships! Recently a collection agency has reached out to me and asked me to pay the amount by credit card, otherwise they’d take me to court. I do not have a credit card and I want to pay them using a money order. Is their demand legal and justified? Can I really go to jail?

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You cannot go to jail for not paying back a loan and moreover, there is nothing wrong in paying back using a money order. These are dirty tricks that collection agencies often assume. Check if the statute of limitations (sol) period has expired on the loan before you take any further steps!


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