Recently Posted



Browsing Archives

Archive for December, 2008


7 Comments » December 31st, 2008
How to get out of the payday loan trap/cycle?
payday loan
dixiegirl asked:


HELP! We are caught in a vicious cycle of trying to pay off payday loans, however, due to the enormous interest rates, we are having difficulty paying them off. We are in the process of rebuilding our credit score, but still have “bad credit”. We desparetly need to get a $1500 installment loan. Insights very much appreciated.

Payday Loans

Technorati Tags: , , , ,

  By admin

7 Comments » December 29th, 2008
If I close my account after writing a draft to a payday loan company, will I face tough legal punishment?
payday loan
Jon W asked:

I recently took out a payday loan and in order to do so they required I write a post dated check. I can’t afford to pay the amount right now. If I simply close out the account to avoid overdraft and NSF check fees from my bank, is that considered fraudulent and can I be criminally charged?

Related Blogs

Technorati Tags: , , , ,

  By admin

1 Comment » December 29th, 2008
Information on Payday Loan Default

Sometimes people who are somewhat short of money at the end of the month take out a small loan to get them through to payday. This loan, called a payday loan, is taken out with the promise that the loan plus substantial interest will be paid back as of payday. In order to facilitate this, the borrower writes a personal check to cover both the amount of the loan plus the amount of the fee (interest).

An anxiety many borrowers have about payday loans is this: they wonder, “can I get arrested from default on payday loan? The lender may have even warned you that it was a distinct possibility. Because a check is involved, they may have implied that you could be arrested for check fraud if you default on a payday loan. The good news is that this cannot, and will not, happen. The mere fact of there being a check involved doesn’t mean you’ll be arrested for check fraud because of payday loan default.

The bottom line is that you cannot be arrested for default on payday loans. Here’s why: the lender agreed, when they entered into a contract with you in regard to the payday loan, that you did not have any cash in the bank at the time loan was taken out and agreed upon. Therefore, you cannot possibly be accused of check fraud, as you have not claimed you had the money to cover the check you wrote.

Clearly, the answer to the question “can I get arrested from default on a payday loan?” is no, you can’t. It gets better: If they claim you can be arrested, the lender may actually be breaking the law. The lender could be fined and may be forced to forgive your loan. They might actually get themselves, no you, arrested! These laws vary from state to state, but most states have laws in the books to protect you from overzealous creditors.

If you’re wondering what law specifically answers the question of “can I get arrested from default on payday loans” it is the Fair Debt Collections Practices Act (FDCPA). According to this statute, it is illegal for a payday loan company (or anyone else, including collection agencies and lawyers) to threaten a debtor with the possibility of arrest for non-payment of a debt.
Just because they can’t have you arrested, though, doesn’t mean they can’t threaten you with legal action. They can do some things to you, however. If you default on payday loans, you may find yourself in a posit6ion to have your wages garnished or other equally dire consequences. It could be as much as 25 percent of your paycheck until the loan is paid off in full.

If you are in danger of defaulting on your payday loan, and you know you can’t pay it in full when it comes due, try negotiating with your creditor. It is in both their best interest and your best interest to negotiate a settlement that might not be the full amount of what you promised to pay them, but will be equitable for all concerned.

Related Blogs

Technorati Tags: , , ,

  By admin

1 Comment » December 29th, 2008
Legal Consequences of Payday Loan Default

Have you ever gotten a payday loan? Were you worried about the consequences if you were to default on payday loans? Sometimes the provider of a payday loan will warn you of dire consequences if you go into payday loan default. They may even warn you that, if you default on the payday loan, you will be arrested for check fraud. The good news is that this is not the case.

If you have never taken a payday loan, and don’t know how they work, you may be wondering how check fraud would enter into it. Here’s how payday loans work: a payday loan is a short-term loan wherein you write the lender a check for the balance of the loan plus a fee, which they will then cash after you get paid.

Because there is a check involved, some unscrupulous lenders will try give you the impression that if your check doesn’t clear, and you end up in default of the loan, there are more serious repercussions than the default, and you might be guilty of passing a bad check. This is not, however, the case, and here’s why: the loan company and you agreed that you did not have any cash in the bank at the time you wrote the check. Therefore, in light of this, bad check laws don’t apply to payday loan default.

So the bottom line is this: the answer to the question “can I get arrested from default on a payday loan?” is no, you can’t.

In fact, if they claim you can be arrested, the lender may actually be breaking the law. They could be fined and may be forced to forgive your loan. These laws vary from state to state, but most states have laws in the books to protect you from overzealous creditors.

The specific statute that answers the question of “can I get arrested from default on payday loan” is the Fair Debt Collections Practices Act (FDCPA). According to this statute, it is illegal for a payday loan company (or anyone else, including collection agencies and lawyers) to threaten a debtor with the possibility of arrest for non-payment of a debt.

If they threaten you with arrest, or even imply its possibility, you can report them and possibly even have them arrested for making these threats. It may be advisable to record the call if they make threats against you. Ultimately, however, if they threaten you, you won’t have to pay them.

Payday loans are expensive. If you are in danger of going into default, it may be worth trying to arrange a payment plan to avoid this. Chances are, the lender will be willing to negotiate; they want your money plus whatever profit they can get, they would rather you not go into default. You, on the other hand, want to preserve your credit rating.

If you default, although they cannot arrest you, there may be legal repercussions. For example, they may have the right to garnish your wages. Therefore, even though you won’t be arrested if you default, it is in your best interest to avoid defaulting on your payday loan.

Technorati Tags: , , , ,

  By admin

6 Comments » December 28th, 2008
I need to get a payday loan as a last resort; what are some reputable places? And how does it work?
payday loan
Katie B asked:


Hello,
As a last resort, I need to borrow from a payday loan place. I am so nervous about doing this, but feel that it is a last resort. Can anyone give me some guidelines or some reputable places? Can someone also walk me through the process? I need to borrow about 900 and make about 4,000 a month. I just dont get paid for another two weeks.

Technorati Tags: , , ,

  By admin

No Comments » December 27th, 2008
Payday Loan Default?

Have you defaulted on your Payday Loan?

Are you worried about the legal implications on a Payday Loan Default?

Take a look at our Payday Loan Default article.

Related Blogs

Technorati Tags: , , ,

  By admin

7 Comments » December 22nd, 2008
How hard is it to get a payday loan?
payday loan
blue11 asked:


Would it be hard to get a payday loan if you filed for bankruptcy and credit sucks? I filed for bankruptcy over a year ago–it was discharged…before i filed i was up to my next in payday loans==four different companies. Would that affect me now for getting a payday loan? I suppose if i didnt go through the same companys as i did before like moneytree for instance i would be okay….what do you think? I need a loan for 400 dollars.
i dont need debt consolidation—i just need 400 soon. Thats the only way i know of getting it. Unless i keep applying for unsecured credit cards and by chance get approved.

Payday Loans

Technorati Tags: , , , ,

  By admin

2 Comments » December 20th, 2008
How can a find a loan, not payday loans with umm fair credit with a co-signer?
payday loan
emile4802 asked:


I have been searching for a loan. Either they want you to pay a fee to find a loan which I think is a scam. Then there are payday loans which I an up to my chitty chin chin in. I just want a smal loan to consolidate my bills right now. I have a co-signer. my credit is ok, not great but ok

Default on payday loan

Technorati Tags: , , ,

  By admin

7 Comments » December 15th, 2008
What happens if you can’t pay a payday loan?
payday loan
Blueeyedgirly asked:


I owe the interest at minimum on a stupid payday loan I took out. I hate these kind of loans but I had an emergency and no where to go for money! Now I can’t pay the minimum off on payday! I wont have enough money. Is there a grace period on these or will they just deposit the check and overdraft my checking account??

Payday Loan

Technorati Tags: , , , ,

  By admin

1 Comment » December 15th, 2008
what are some good marketing and advertising ideas for my payday loan business?
payday loan
Destiny B asked:


i work at a payday loan company and we need to increase our quota on new customers, what is an excellent way i can do that.

Technorati Tags: , , , ,

  By admin

Navigation
« Previous Entries