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Since payday lenders require that you leave a check, they turn in the check and if you don't have sufficient funds they can start legal action. Your wages may be attached, you may be charged with check fraud and you will certainly be required to pay for legal expenses.
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∙ 18y ago
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Why is the interest on these payday loans so high?
Payday loans were designed to give people with bad credit a loan. Not all payday lenders are unscrupulous, but many are. In general, payday lenders rely on you not being able to pay them back very quickly. They make more money that way. It can be a repetitive and often destructive cycle. For example, on a $300.00 loan, you may be required to pay back $390.00. They will gladly allow you to just pay them $90.00 every two weeks, not even touching the balance. This is where people get in trouble. I would advise against a payday loan unless there is no other way to get the money, and you know for sure that you will be able to pay the full amount back on payday.
What is instant payday advance loan?
An instant payday advance loan is a short-term loan that is usually paid back to the lender on the borrower's next payday. These types of loans can apparently be very risky for the lenders, because some lenders do not run credit checks or verify the borrower's income.
What do lenders do?
As their name suggests, lenders lend money to their customers. This money is then paid back with interested added to it.
What is the relationship between lenders and borrowers?
Lenders have something (usually money) that the borrowers want; and the Borrowers have something that the Lenders want (their money back).
What can be some of the disadvantages of dealing with direct payday lenders?
Some of the disadvantages of dealing with direct payday lenders are that they can be very expensive in the start and can turn even more expensive when paying back. It's also know that the requirements they have can lead to that it will be used by the people who will have the most difficult to handle the repayments.
Can payday lenders sue your family?
No. If they didn't sign any papers taking out a loan, then they are not liable. If your state allows payday loans, you could be sued civilly. Some states make payday loans illegal. Payday lenders will often harass you and your references or family members hoping that they can scare them into paying. Research the Fair Debt Collection Practices Act (FDCPA). The federal law tells you what collectors can and cannot do. Most likely, the collector has violated this law. A consumer rights attorney might help get them off your family's back. Otherwise, they may have to deal with the phone calls for awhile.
How soon would I have to pay back the money from a quickest payday loan?
You have to pay back the money between two to eleven years, depending on where you took the quick payday loan from and what company they work for and give to.
What are a few pros and cons of receiving an online payday advance?
The pros of an online payday advance are that you will have your money as soon as you need it. The con is that you will have to pay the money back with interest.
Can you get help if you cant pay back your payday loans?
You need to check your state laws. Some states have made payday lending illegal. At most, if your state allows payday loans, then you could be sued civilly for default. They cannot arrest you or make threats of such. Your state attorney generals office or financial regulator could help you find out the legality in your state. Be wary of payday loan consolidations. They can be shady. Check them out first with the BBB and see what they say about them. Often, payday lenders will still try to collect from you even if you do get consolidation help.
Can you go to jail if you owe payday loans in Colorado but you move to Texas?
No, you cannot go to jail for owing payday loans in Colorado or any other state. However, the lender may pursue collections through legal means. Moving to Texas does not eliminate your debt obligation, but the lender must follow Texas laws regarding debt collection.
What are a person's options if they require an emergency payday loan?
If you need an emergency payday loan you have to think of it as a last resort. If you can get the money from a bank, a credit card or your family you should do it. The emergency payday loan can help you when you do not have other solutions, but you have to be sure that you can give the money back.
Can you go to jail for not paying your paiday loan In Florida?
In Florida, failure to repay a payday loan is not considered a criminal offense, so you cannot be sent to jail specifically for not paying back a payday loan. However, lenders can take legal action against you in civil court to recover the debt. It is important to communicate with the lender and try to work out a repayment plan if you are struggling to make payments.
