Can I Be Arrested For Not Paying Back My Payday Loans


It would be amusing if it wasn't so distressing. If you read over the thousands of blogs regarding payday loan places, you really start to wonder about the intelligence of those who frequent them. Payday loan places, that is. The only thing seemingly sadder than the individuals who seem to be getting these exorbitant loans are those who fail to pay them back. State and federal system have long required payday loan places publish and distribute borrowers' rights information with the loans they issue, yet the internet is full of questions, posted by the desperate who seem to be oblivious in regards to what payday lenders may and cannot do. This article will help you separate the payday loan fact from fiction.

Am I going to get arrested for not paying my pay day loans?

Have you been arrested for not paying your water bill? In the US, there aren't any debtors' prisons. You can thank your founding fathers for that. These used to exist in England, but they do not exist here. It really doesn't make much sense, our founders decided. After all, if you're in prison, how could you work to pay your bills? What can happen, however, is that the payday lender can proceed with a civil charge against you and file a suit to recover the cash you borrowed from them.

I can't pay. What am I supposed to do?

Well, whatever you do, don't ignore them. Many payday advance places will work something out together with you. Some require, however, that you just make contact with them before the loan is due to make arrangements for repayment. There is something called "hardship repayment" that many do not advertise. Given our current economy, if you have had something happen like losing your job, you might be qualified for a payment plan. It is necessary to ask for this though and many won't be too easy about providing.

What's a repayment scheme?

Rather than rolling over the loan and continuing to pay interest, a repayment plan, also called a hardship repayment plan, converts the loan, if you will, into an installment loan. In this manner, your entire loan is broke up into multiple payments, usually no more than four, and the interest or finance charges stop. So, if you borrowed $500, which, with the finance charge would be $588, that repayment plan may look something like four payments of $147 to be made every two weeks (every pay day).

Are they really permitted to call me non-stop?

Unfortunately, yes. You can ask them to stop calling you every hour on the hour, but they are not a third party collector and therefore lawfully allowed to make contact with you ad nauseum, if they decide. You can however ask them not to call you at work

Look, you got yourself into this mess and now you're going to have to get yourself out of this jumble. Part of this needs you take action and make yourself alert to your rights and options. Pick up the phone and call. It may not be easy, but you may be surprised that several companies are ready to work with you.

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