Comments on: What happens if you default on a payday loan? Do they call friends/work/etc?

By: breeze1

breeze1 — Fri, 30 Jan 2009 14:23:48 +0000

That depends on what state you are in. In alabama if your check bounces on a payday loan, they cannot redeposit the check. You cannot be charged with writting a bad check either unless you have written it on a closed account. I think you would be better off if you can’t pay the check to let it bounce. This stops the outragous interest that you would be paying if you contiue to renew the loan which never pays any principle. You can pay the check in four equal installments with no extra interest, Just the returned check fee whicch in the long run is less expensive. They are regulated but will try to intimidate you. Look in the code for your state on deferred presentment services for the law on this.

By: RAY

RAY — Tue, 27 Jan 2009 13:20:01 +0000

If you cannot afford to repay it, don’t take one. They will probably bounce your check twice so you get bank fees from them twice and your bank twice in addition to outrageous interest … so they probably wouldn’t call anyone except their attorneys. If you read their contracts, you will see some unfavorable terms which is why they are charging the equivilent of 300% annual percentage rate when you factor it out over a long term. Avoid those places in the first place and it won’t matter who they call.

By: serenitysoul61

serenitysoul61 — Mon, 26 Jan 2009 08:46:56 +0000

Yep they call you, everywhere they have a number for you, and everyone else you gave as a reference and keep trying to take the funds out. They charge anywhere from 300% and up interest for doing this loan. They will then send to collections or take it to court for a judgment. Which will ruin any credit you have….better to make sure you have the funds in there….And they can charge you with felony check fraud..that means jail time.

By: Chad M

Chad M — Sun, 25 Jan 2009 15:51:53 +0000

Vinny will come and visit you to collect.

By: bella_4624_19

bella_4624_19 — Fri, 23 Jan 2009 19:58:01 +0000

I wasn’t able to pay my loan back for a while. They will bounce that check every two weeks until you have that money in your account. I mean they literally sent that check into my bank every two weeks and it would bounce and I would have that standard $29 dollar fee every time. They can call anyone you put as a reference on your paperwork. They can only ask questions as to where your location is.

Save yourself some money and pay the loan off.

By: Shawn N

Shawn N — Tue, 20 Jan 2009 08:27:54 +0000

That would be known as a bad check. That is a serious offense for which you can go to jail. My suggestion is to call them and make arrangements to pay.