Default payday loan – can I be arrested on this charge?

Can I get arrested for default of payday loan?

I don't think so. I haven’t heard anyone getting arrested due to default of payday loan. But there are certain things that you should know which can help you in dealing with the payday loans.default-payday-loan1

Payday loans are regulated by the payday loan laws of the state. Please check the payday loan laws of your state here. But there are some states where payday loan companies operate as Credit Service Organizations (CSOs) to avoid the regulation of pdl laws. Some of those states where many payday loan companies operate as CSOs are listed here. To know more on payday loan companies acting as CSOs, read this information.

What happens if you don't pay a payday loan? I have come across this question many times. To answer this question, first of all I have to tell some basic points. You can get a payday loan either from a store front or an internet/online payday loan company. Both of these are regulated by laws. To know more, read along.

Ways of tackling payday loan companies:
i. Store front payday loan company

If you have taken a payday loan from a store front then you have to follow the payday loan laws of your state. You can ask for an Extended Payment Plan (EPP) from the company if you are finding it difficult to pay off their debt. But there are concerns about the efficacy of such payment plans. Here are some concerns associated with EPP.

If you default payday loan then the store front can sue you for collecting the debt. But I haven’t heard anyone getting arrested for not paying payday loan.

ii. Online or internet payday loans
If you have taken payday loan from an internet or online payday loan company then first check whether the company is licensed to lend in your state. To check the internet payday loan laws click here. If the company is illegal then you are not legally bound to pay them anything. But on moral grounds we urge our viewers to pay the principal amount of the debt borrowed from illegal pdl companies. The following article can help you in dealing with the illegal pdl companies:
Dealing With Illegal Payday Lenders

If the online payday loan lender is licensed in your state then you have to follow the pdl laws of the state.

Is there a debt consolidation for payday loans?

Yes, payday loan consolidation programs are available. You have to search for the best company that can consolidate payday loans and get you out of this mess.

My view on payday loans and some alternatives

I consider payday loans as predatory. These loans come with extremely high rate of interest, sometimes as high as 780% APR. I always try to avoid these loans. Payday loans may help me in the short run but its ill effects are long term and can also ruin my life.

There are many alternatives to payday loans, but we generally avoid them for various reasons. I am jotting down some of the alternatives to payday loans: -
•    Borrow from our family, friends or relatives. This may sound demeaning to you. But it will not land you into some payday loan mess for which we have to regret later.
•    Inquire whether your bank/credit union offers any option of overdraft protection to your checking account. If such an option is available then opt it to meet your immediate needs and avoid payday loans.
•    Request your employer to pay your salary check in advance.

I hope this post has helped you gain insight into payday loans, its ill effects, some way outs and alternatives.

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13 Responses to 'Default payday loan – can I be arrested on this charge?'

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  1. Can you give me some advice for TN - that is where I live - my pdl are online. Many thanks!

    rene

    05 Mar 2009at 4:53 pm

  2. No you cannot go to jail. You need to arrange a pyament plan with the lender and commit to paying off bit by bit until it is done. If not the guy will continue to call and harass you in an attempt to collect the debt. There are some laws that say the harassment is against the law but i think that has only to do with credit cards not payday loans.

    Maggie

    11 Mar 2010at 4:05 pm

  3. Nicely picture looks with such payday lender. Why shark is green I can't understand. Is it from "green peace"?)

    Stanley

    20 Nov 2009at 7:23 am

  4. In 2006 I picked up a few pay day loans. I went to pay them off. I was able to pay all but 1 of them the company informed me that they no longer had my information. So, I just decided to leave it alone. Then my aunt calls me in November and tells me someone is calling her telling her they are taking me to jail and so on. I paid them $200 in December and was suppose to pay the other $200 this January but, I am in a bit of a financial bind so I am unable to. The manager of this particular company has cursed me, called me ignorant, and told me I was going to jail because I did not pay the bill. I have called them and asked if, they could possibly wait until next month. In this situation I don't know what to do.

    lashonda gordon

    21 Jan 2010at 12:21 pm

  5. If the information provided by you at the time of applying for the loan are correct, no one can arrest you. Default of loan payment is not a crime.

    Payday Loan Debt Consolidation

    15 Apr 2009at 3:26 am

  6. I took out some payday loans, but there is one I haven't been able to pay. The collector is calling me saying he is calling from a law office and if I don't pay I will be getting arrested at my work and even the references that I put down. I've sent them a notarized letter saying i was going to pay them but am having financial problem, but the man is so rude he said that he doesn't care that I could keep my money and he is sending everything for me to get arrested, as well as, the other people. Can they arrest us? What can I do?

    Ana Reyes

    29 Mar 2010at 7:33 am

  7. Loans and mortgages are not easy to get these days, especially with a bad credit history

    money

    16 Apr 2010at 5:40 pm

  8. I had a call today from their "fraud" division asking for my attorneys name and number. They kept referring to a county that I do not live in. The phone number was from NY 716-952-4198. The woman said she was going to send me to jail. Not sure if it was legal at all.

    Mike

    21 Jun 2010at 3:43 pm

  9. What a news! Greetings from Poland, hope to read more about it

    last minute oferty

    19 Jun 2011at 9:14 pm

  10. You made some good points there. I did a search on the subject and found most guys will approve with your website.

    Carroll B. Merriman

    21 Jun 2011at 6:12 am

  11. I am exploring for attention-grabbing knowledge concerning personal loans everywhere the net, because i will need to make a program in order to take a personal loan and purchase a apartment. Your writing looks appealing and i may possibly give it a check out.

    Lili Kolb

    16 Mar 2012at 5:26 am

  12. Just like Ana Reyes, I too took out a payday loan and did not pay it back on time. I was not aware that my bank rejected the electronic payment to the loan company, so I assumed everything was fine. Then I got a call saying that if I did not pay this loan back TODAY, I would be arrested and lose my license, my job, and they would also go after my referrences. With God's help, I put together over $1400.00 (totoal of what I borrowed & fees) and yet this still was not enough. They still want to have me arrested "as an example" to others that do n ot pay loans back. These bastards will ruin my life even though I paid back every penny plus fees. They said that New Jersey has a "no tolerence law" regarding money borrowed and not paid back. Will the State of New Jersey arrest me even though I paid it bacK?

    Sal

    18 Aug 2012at 11:39 pm

  13. Thank you for sharing superb informations. Your site is very cool. I am impressed by the details that you’ve on this site. It reveals how nicely you perceive this subject. Bookmarked this website page, will come back for extra articles. You, my friend, ROCK! I found simply the info I already searched everywhere and just could not come across. What an ideal website.

    Everett Lorenzano

    08 Aug 2012at 10:11 am



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