I've been trying to track the legalities of not paying back payday loans on time and have gotten mixed signals from the answers on this question board. Some people have answered that one can go to jail for not paying back these loans, others have stated that we have no "debtors prisons" and that payday loan collectors are the ones actually breaking the law by threatening to use law enforcement. Does anyone know the real story behind this? I got myself in a mess and am currrently paying some of them off, but can't afford to pay them all at once. What is going to happen?
2006-09-27 11:27:33 · 6 answers · asked by James B 1 in Business & Finance ➔ Personal Finance
It depends on how the loan was secured.
If you wrote them a post dated check then you better pay it as passing bad checks is a felony in most states.
In Oklahoma, where I live, the penalties range from imprisonment in the county jail for up to one year (1) and a fine of up to $5,000.00 to ten (10) years in prison and a fine of up to $5,000.00 depending on the amount. Anything over $50.00 can be considered a felony and is eligible for the harsher penalties.
This would be the only way they could come after you for criminal charges and get you put in jail.
Click the link below for a list of civil and criminal bad check penalties by state.
http://www.ckfraud.org/penalties.html
If they gave you a signature loan or you put your car up for collateral, etc then not paying will result in them reposessing the collateral. If no collateral they can take you to court, obtain a judgement and attempt to garnish wages.
I would suggest contacting your state attorney generals office to verify that whatever collection tactics they are using are legal in your state. If nothing else, you can ask them what happens if you don't pay.
2006-09-27 11:40:49 · answer #1 · answered by Jim R 5 · 0⤊ 0⤋
You can instanly get a quick payday loan as much as $1000 by using this service: http://loans.servermatrix.org I got the payday loan despite the fact that I had really negative credit history.
2014-08-30 13:01:28 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If you read the contract you signed, it states the VERY high interest rate and penalties for being late.
Unless you can sue them for unlawful usary (charging rates above your states legal limits, if any), they can take you to court and collect.
Once they have a judgement, they can garnish your wages, bank accounts, property, etc until the judgement is paid.
But you don't go to jail for a bad debt....unless it is to the IRS.
2006-09-27 11:38:05 · answer #3 · answered by Anonymous · 0⤊ 1⤋
Are you trapped in the net of Mafia Peoples? If so you must repay the loan..If it's a loan from some one..he/she can't do anything cause nothing in writing,Have you signed any promissory note? If not they cannot harm you,Don't worry about any verbal threats.
2006-09-27 11:33:49 · answer #4 · answered by precede2005 5 · 0⤊ 1⤋
This is definitely one of the things you should just say NO to.
2006-09-27 11:30:54 · answer #5 · answered by Topez 6 · 1⤊ 0⤋
Jail is the ultimate solution, and they'll have to prove you fraud.
2006-09-28 09:09:26 · answer #6 · answered by Anonymous · 0⤊ 1⤋