What Happens If I Don’t Pay For My Payday Loan?
Posted on December 21, 2009
Filed Under loan payday | 8 Comments
Let’s say I took out a payday loan, but at the end there’s no money left in the bank account for the loan shark to reclaim. What happens then? Do they garnish your wages, sue you, or what?
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8 Responses to “What Happens If I Don’t Pay For My Payday Loan?”
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Unfortunately companies like this, charge extremely high interest rates (around 100%), to offer short-term loans to high risk borrowers. Before you accept the loan, they must have your consent that you understand the loan terms…including the interest rate. If you signed the form, applied online and accepted the terms, etc, you are stuck. A case like this would not hold up in court (hold up on your side at least). Companies like these are tough, because they prey on those who live paycheck to paycheck, and know that they will entice with these”too good to be true” loans. It will also be tough to work with them through a debt consolidation company, as they will usually want to deal directly with you, since you opened the loan yourself. Your best option would be to borrow from friends, family, or research other lenders (your bank). Borrow the money, pay back your cash call loan, and learn from the experience. Bankruptcy would also be an option, although not reccomended, but would stay on your credit report for up to 10 years. These companies can only garnish your wages if they have a court order that allows them to do so.
They will still take it out of your bank account if you have over draft. Then you will owe the bank, then if you dont they will call you like 20 times a day and all your refrances to try to get to you, and the dame credit people will harass you so much and leave bad messages till you take care of it, FYI all credit collectors are butt holes!!!! You better just get it payed if you dont they will put out a warrent for you! it all happend to my hubby!! good luck!
I am not sure what happens, but the bigger question is why you are taking out payday loans. You need to cut your lifestyle. Try to delay gratification and live below your means. Also, try to get an extra part-time job to cover your expenses. Here is an article that might help you.http://www.ehow.com/how_2291420_bank-mon?
That is a bad Check, Felony bad check if over $500
good luck with that.
I would ask my bank for a Signature loan to cover it and pay them back in installments. Much more affordable.
Pay Day loans are a death trap…
They will contact your employer and make things very embarrassing for you. They will call every phone number you gave to them and hunt you down until the day you die.
They probably sue you, but the interest rates are so exorbitant that they will wait a while to jack up the amount that you owe them.
Then send Dog the Bounty Hunter after you.
Bubba and Guido hunt you down and break your legs. And maybe have a little fun with ya too.