4 September 2014
Can Payday Loans Get You In Trouble With The Law?
There is so much hype and news going on with the payday loans these days that many people might be confused as to how they really work, where people stand with them, and how to get out of payday loan debt.
Getting payday loans are easy, and many people find it to be even simpler online, as there are no faxes, no credit check, and in most cases, no employment verification required. People are able to get a payday loans with nothing more than a bank account and id, and the money is deposited in their bank account within hours. However, since payday loans are so easy to get, what happens if a person isn't able to pay it back and can payday loans get you in trouble with the law.
The biggest question that most people have about payday loans is what happens if they are not able to pay it back. Can a person go to jail if they don't pay back their cash advance loan? The answer is no.
Obtaining a payday loan is legal and easy, but not paying it back isn't a crime and people cannot go to jail for doing so. Lenders are not allowed to threaten criminal charges as it's not a crime to breach a payday loan contract and people cannot go to jail for not paying the loan back. With that said, lender are allowed to pursue legal action to obtain their money back. This can included a civil action which could lead up to garnishment of wages if the lender and payday loan contract are found to be upheld in the court of law.
Just because a person cannot go to jail for not paying back a payday loan, doesn't mean that these loans don't come with some price. In order to get a payday loan, a borrower must give access to a bank account, and lenders use this access to get the funds they need. In addition, they will continue to pursue the funds until they've exhausted all of their options, and this could be phone calls, letters, civil action in court, as well as added fees that need to be paid back. Payday loans won't go away just because a person decides not to pay them back and they won't go to jail.
Getting a payday loan is a serious financial matter that people have to use responsibly, and they should read everything before signing so that they know what is expected of them, and whey they are required to do.