Payday loan interest is exhorbitant. If you default on a payday loan the interest will escalate. Payday loan lenders are at the bottom of the heap of unscrupulous lenders. They know you are in need and they know you may not be able to pay your loan on time. Generally, they will not set up a payment program with you and therefore the interest continues to build on the amount you owe until the entire bill is paid.
If you have given them access to your bank account they can cause your bank fees to escalate with Returned Check charges as they continue to send checks against your account.
You should call your state attorney general's office to make certain the lender is licensed in your state. If the lender isn't licensed, the AG's office may be able to provide you with the number of an agency that can help you with this problem.
If you default on a credit card, the first thing that will happen is they will report you to the consumer credit agencies. They may sell your account to a collection agency or garnish your wages. If it is a secured debt, they will take back your property.
Lots of very bad things.
You may be sued in either a small claim court or district court. And if you are found liable for the money owed, the court may issue a judgment against your bank accounts, other asset or future income.
Some states would call that theft and intent to defraud. Can go to prison.
You may fall into the category of bad credit . Personal loans often concern with your credit score so if you failed to pay on time it would put a negative impact on your credit score.
The loan will be a default loan
The cosigner now owes for the loan.
If you default on a loan used to purchase a piece of property you usually lose the property through foreclosure.
what haapend if a loan is sold with recourse and it goes into defualt
If someone has a loan default statement, it means that the person who took out the loan has not met the terms of the contract, for example they have not met the payments. If this happens then the person who gave out the loan and who the debt is loaned to can take action to recover the money, for example re-possession.
If you don't pay a loan when due, you default on the loan.
The creditor reposseses the car, and you take the bus.
Payday loans are considered illegal in the state of Georgia. However, if you default on a payday loan, the company can sue you in court. The judge will decide how a judgment will be carried out if the loan was given in Georgia illegally.
If in the US, then yes. The default will be replaced with paid in full. Simply send proof of the payment to the three credit bureaus.
Most loans have consequences when you default like reporting negatively to the credit bureaus, garnishment of wages to repay the loan, ineligibility to get another student loan if needed; many late fees, and even a lawsuit to collect on the loan.
It could be recovering the money from your employer or even a legal pursuit.
If you default on your loan, the cosigner is stuck with paying it off. If your credit had been any good in the first place, you would not have needed a cosigner.