Can An Online Payday Loan Take You To Court

Can An Online Payday Loan Take You To Court?

Known as payday loans online, deferred deposit loans or check advance loans – such are all short-term loans ranging anywhere between $100 and $1000 that appeal to individuals facing a difficult financial situation, offering them a quick fix until their next payday.

“Defaulting” on a loan, otherwise known as missing a payment, can bring about many different consequences including automatic withdrawals from your chequing account, bounced checks or payments, NSF (Non-Sufficient Fund) charges. This payday loan will affect your credit rating, can lead to repetitive calls from collection agencies and even worse – a lawsuit.

So, Can A Payday Loan Take You To Court?

Facing an overdue amount – no matter how small that amount may seem? Then chances have it that you’ll be taken to court for a lawsuit. It is important to keep in mind that no amount is ever “too small” to be neglected. More so, once the court judgement has been decided, further and even bigger problems can come to be, including property seizure. In most places in the states, a judgement is viable for ten years and therefore, any property you may put your hands on over the next ten years can be used to repay your debt and any additional fees that have accumulated over time.

Request Help Prior to getting Sued

If you know that you aren’t going to be capable of making your payments on your payday loan online, then your best option is to start looking for help before you ever even get sued. No matter what amount you are dealing with when it comes to your payday loan online, you should never tell yourself that such isn’t important enough. If a court order is what ultimately encourages you to take action, then we’re here to help you get through that, too!

Lawsuit For Unpaid Payday Loans

While a lawsuit for an unpaid payday loan is not just possible but actually probable, threatening or harassing someone with arrest or jail time for not paying back said loan is in fact illegal under the Fair Debt Collection Practices Act. In many scenarios, the lender will pretend to be a law enforcement officer or government agent in order to request their cash, alluding to possible jail time. In the case that you are threatened, you should contact the office of your state attorney general, as suggested by the Consumer Financial Protection Bureau.

Remain cautious though, for certain payday lenders have actually succeeded in using bad-check laws to successfully file for criminal suits. For this reason again, it is best to never ignore a court judgement because such orders are legitimate when it comes to failing to repay a loan.

Court Judgement

Just a small word of advice before we continue: Never, ever ignore a court judgement. Not showing up in court in order to discuss your settlement plan will only make matters worse – much worse, seeing as the creditor can now sue with the legal system on their side!

On a lighter note, failing to pay back a payday loan online is not considered a criminal offense and therefore, you can’t be sent to jail. However, the fact remains that a payday lender can still take you to court and cause you quite a bit of hassle.