If your lender is licensed to operate in your state he may choose to file a lawsuit against you. On the other hand, if he's not legal in your state, you may only repay the principal loan amount and opt out of paying for your late fees and interests.
What Happens If You Refuse To Pay Back A Payday Loan?
I closed my checking account because I could not afford the fees they were taking out for the payday loan.. Can they
put you in jail for a bad check?
put you in jail for a bad check?
Paying your loan is actually a must, whether you got it from a bank or even from a licensed money lender.
In worst case scenario that you can't pay your payday loan, expect a barrage of bank overdraft fees, constant collection of calls, hit after hit your credit. And eventually a day in court and garnishment on paycheck.
Understand that the penalties for refusal to pay back your payday loan will depend up on the laws which are applicable in your particular country or state.
It would be best to clarify what your rights would be if in case you are later unable to repay theses loans on time. It would be in your best interest to try working out a payment understanding with your payday loan lender before taking another loan to pay off the first one.
A good place to start out in knowing your rights would be
www.paydayloaninfo.org.
The website offers consumers a number of important facts, consumer help and legal information as well. A great feature which it offers is information relevant to all the different states.
It would be best to clarify what your rights would be if in case you are later unable to repay theses loans on time. It would be in your best interest to try working out a payment understanding with your payday loan lender before taking another loan to pay off the first one.
A good place to start out in knowing your rights would be
www.paydayloaninfo.org.
The website offers consumers a number of important facts, consumer help and legal information as well. A great feature which it offers is information relevant to all the different states.