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Herberg said his office wont prosecute cases in which a payday loan is involved unless theres a clear case of fraud or deception. If its for a loan, theyre not going to submit them to a criminal prosecution, it would be for collections purposes only.
However, the collections letters from the Bexar County DA threaten arrest, jail and criminal prosecution-an inconsistency that the credit commission noted in its correspondence with Marpast.
You would think that if this was a legitimate fraud or suspected fraud or suspected theft by check, that wouldve come up somewhere in the letter from Marpast to the credit commission, Tillman said. Because [Marpast] knew and the DA for that matter knew it was bullshit. It was citi charge cash advance limit attempt to collect on a debt by coercion. There were other details that bothered Tillman. For one, the outstanding loans were for 500 and 350, respectively, not the 1,020 that Marpast was demanding.
He also bristled at the thought that the Bexar County DAs office was profiting from its collections letters. When you multiply a 140 processing fee times a 1,000 or 2,000 or 3,000 people who are delinquent, thats a hell of a lot of money.