I understand that NC passed a law where prohibited this types of loans and there were some of this payday loan offices closed or sent away out of the state. My question is can this people still get me even though they are not allowed to do business in the state.
I’ve paid in interests like $2300.00 for a $500.00 loan incurred in a year.
Thanks for any answer to my problem.
I forgot to add that I place a stop payment to this account for 1 year, so they cannnot collect this money.
Thanks
Related Blogs
- Related Blogs on default loan
- Business Web Directory Blog » Blog Archive Loans Tips - Collection …
- Student Loan Consolidation
- Home Loan Refinance Information « noank6.com
- Related Blogs on Loan Default
- Business Web Directory Blog » Blog Archive Loans Tips - Collection …
- » REIS Commercial Loan Default Warning Probably Misses the Boat …
- Related Blogs on Loan Offices
- » quick cash lending encino: cash loans offices in jhb UK Cash …
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.