I defaulted in payday loan I owed but paid part of it.

Rochele

Welcome to the forums. Each payday loan company does have their own "legal department" so to speak. When they say they're going to take legal action, more than likely it'll be a wage assignment. This is usually done with most of the quick cash loan companies, and should of been apart of your loan agreement. This can be taken back, as wage assignments are totally voluntary.

I would recommend paying this off as soon as possible. The more you hold off on paying, the more it could come back to hurt you. Most loan companies will renew the loan, or just add on a high interest...turning that $100 loan to a $300 payback.

Regards-
Mike

so i would get takin to court or sue i know that my employer does not do wage assignments so would this go to collections

Rochele

Chances are you will not get taken to court. However you will have a negative marking on your credit file. As I mentioned, most payday loan companies do whats called a "wage assignment" which means if you default, they can call your employer and have them take it out your wages. If you signed one of these, you can revoke it.

I would highly recommend making arrangments to pay this back. The longer you prolong not paying, the more you risk hurting your credit. Also, it is possible they could file for garnishment if they do take it to court.

If this goes to collection, you also rish having lots of interest fees from the loan company being added for the time you've kept the money.

Hope this information helps some.

Regards-
Mike

Hi Rochele

Welcome to you on this board!

I would suggest you following the advice of Mike as payday loans are the most expensive cash around. If you default with your lenders, the interests keep multiplying at a very fast rate and along with it, you might have to go through all the harassments during collections.

Try to separate some portion of your income for the loan installment and arrange a payment plan with your creditors directly. This is a small amount and won't take much time to get over. If you live on a tight budget for a couple of months, you will surely get through it.

And if you have experienced the troubles of taking a payday loan, stay away from it in the future. It might be an instant help in the beginning but the cost of these loans is too much. These loans are fine for those people who can pay it off within the next payday or can bear the revolving costs.

I hope you will realize the importance of clearing the loan as soon as possible.

Regards
Roxette