There are numerous of payday loan borrowers who are living in the fear that they go to jail because of their unpaid debt. The reason behind this terror is, continuous threatening from lenders side to pay back the loan within short time period or borrower will face serious consequences. There are many loan providers who threaten borrowers by saying that they make sure he/she goes into jail if they do not repay the money on the giving deadline.
Are These True?
But the question arises, it is really true? Can a payday lender put the borrower in jail if they do not refund the loan amount? The answer is big NO. Making default on the payday loans in not a crime which can put you in criminal charges. It means no one can put you behind the bars if your financial position doesn’t allow you to return the payday loans.
It’s Illegal to Threaten the Borrowers
Do keep in mind that no lender can threaten you to pay back the loan amount as it is an illegal practice. In case, your lender still making false threat to collect their money then it is very much possible that your payday lender is running illegal or unlicensed lending company. Usually, they are ones that threat people to get back the debt as they can’t do anything legal to recover the amount. There are numerous of unlicensed lenders managing their business in both online and offline money market. For this reason, they threaten you as they can’t take you to court for repayment. If you are living in state where payday lending is prohibited then, they can’t do anything to get back their money.
Legal Lender Can File A Lawsuit
If your lender is legal then, they get the full authority to file the civil lawsuit against you. By filling this lawsuit they can get the judgment to sue you outright, which got the legal declaration that you owe the amount and you have to pay it back. In case lender gets this judgment then, he got the right to garnish your wages, seize the cash in your bank account or lien your property.
So, to avoid this action, do communicate with your licensed lender and try to make the way out. Lenders also not interested in taking you to the court for small payday loan as suing you take their lots of extra money and time. Usually they take this action as the last resort to recover their money. So, the best thing is to talk to the lender and try to work out things which you both can agree on to avoid legal battle.
Seek Professional Help If Drowning In Payday Loan Debt
In case you are not finding any way out and drowning in payday loan debt than do not take tension and seek professional help. You can take their help to manage your funds in a proper manner so you can come out of this dilemma. Do not worry about non repayment of payday loans as you can also take the help from payday loan consolidation to gain the deserving financial freedom for yourself.
Are These True?But the question arises, it is really true? Can a payday lender put the borrower in jail if they do not refund the loan amount? The answer is big NO. Making default on the payday loans in not a crime which can put you in criminal charges. It means no one can put you behind the bars if your financial position doesn’t allow you to return the payday loans.
It’s Illegal to Threaten the Borrowers
Do keep in mind that no lender can threaten you to pay back the loan amount as it is an illegal practice. In case, your lender still making false threat to collect their money then it is very much possible that your payday lender is running illegal or unlicensed lending company. Usually, they are ones that threat people to get back the debt as they can’t do anything legal to recover the amount. There are numerous of unlicensed lenders managing their business in both online and offline money market. For this reason, they threaten you as they can’t take you to court for repayment. If you are living in state where payday lending is prohibited then, they can’t do anything to get back their money.
Legal Lender Can File A Lawsuit
If your lender is legal then, they get the full authority to file the civil lawsuit against you. By filling this lawsuit they can get the judgment to sue you outright, which got the legal declaration that you owe the amount and you have to pay it back. In case lender gets this judgment then, he got the right to garnish your wages, seize the cash in your bank account or lien your property.
So, to avoid this action, do communicate with your licensed lender and try to make the way out. Lenders also not interested in taking you to the court for small payday loan as suing you take their lots of extra money and time. Usually they take this action as the last resort to recover their money. So, the best thing is to talk to the lender and try to work out things which you both can agree on to avoid legal battle.
Seek Professional Help If Drowning In Payday Loan Debt
In case you are not finding any way out and drowning in payday loan debt than do not take tension and seek professional help. You can take their help to manage your funds in a proper manner so you can come out of this dilemma. Do not worry about non repayment of payday loans as you can also take the help from payday loan consolidation to gain the deserving financial freedom for yourself.
