What are the circumstances of not paying on a payday loan?

Answer 1

It all depends on what state you live in. Regardless of whether your payday lender is off of the internet, the law says that the transaction actually occurred in the state where your computer is located when you took out the loan. Some states have made payday lending illegal, some have usury rate caps that won't allow loans over a certain interest rate. That being said, many payday loans end up being unenforceable due to the state you reside in. I wouldn't recommend taking out any loan you can't repay, however it is easy to get caught in the payday loan trap. If you have a reputable lender, they may work with you on payments. Unfortunately, many payday lenders don't work with you at all. They will continue to try debiting your bank account even if you tell them not to. Many times, people have to close their account to prevent this. Some unscrupulous lenders will violate the Fair Debt Collections Practice Act (FDCPA) by making threats to come to your work, come to your house, have you arrested, etc. They cannot do this. They are legally bound by the same laws as any creditor, therefore if the state you reside in allows payday lending, you could be civilly sued for what you owe, that's it. Check your own state laws and research the multitude of sites regarding payday lending. There are numerous complaints to be found on the web that may help you.