Legally, what can ACE do on a defaulted payday loan?

Hi, welcome to the board.

Was your payday loan a storefront, or an internet lender? Also, what company is this, and how much did you pay on it?

If this is a storefront, they generally operate mostly within the laws. In the state of Texas, however, you don't have to worry about garnishments for consumer debts. They can seize bank accounts, but I have a hard time believing this will happen for a $1000 payday loan!! You pay what you can..Write them a letter explaining what you can pay..Include a payment with the letter. Make sure you send it certified. As long as you keep up with the payment plan you set up, there should not be any problems. Good luck!

ANd keep in mind, regradles of what they tell you, its a civil matter not a legal matter....you will not go to jail and you have not commited a crime :) But do take finsfans advice...:)

If it is a registered CSO (Credit Service Org) they will be legal and not actually a pdl. As such they can do just about anything they like toi collect on the loan. How fast they would do it is the question. Did you try to explain that you could PIF in February?? Any way you could make a payment of some kind in good faith while making arrangements??

It is possible in Texas for the lender to pursue bad check charges. But if you keep up communication, and try to make at least some small payment then you should be okay. It's hard to tell what they would do, but I think the drastic measures are only taken when they feel there is no way you will pay willingly.

Are you saying they will take you to jail for not paying a payday loan? I though allstates have bad check laws.

I doubt you would go to jail - It's usually a misdemeanor. You would have to go to court though.

All state's have bad check laws, but a lot of state's have specific laws relating to defualting on payday loans, and in those state's it's not considered a bad check.

i had took out several payday loans i guess secured with my checks i wasn't able to pay them can i go to jail over this even if i try to pay them i just can't do it all at once

Evelyn. If you stay in contact with the payday loan places and make an effort to pay it off, even if a small amount they probably will not put you in jail. I think they would only take that kind of drastic action if you ignored them and did not make an effort to pay them back.