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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.

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14y ago
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9y ago

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.

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14y ago

Lots of very bad things.

  1. Very bad credit, defaulted Federal loans are as bad as IRS tax lien.
  2. Garnished wages, can add up to 25% in collection fees to your loan balance.
  3. No more income tax refund checks, they will be applied to your loan balance.
  4. Harassing calls from collection companies.
If you need help getting out of default, call Default Management Services. You can Google the company. Ask for Doug
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11y ago

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.

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16y ago

Some states would call that theft and intent to defraud. Can go to prison.

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13y ago

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.

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Q: What happens if you default on a loan?
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Related questions

What happens if you do not pay your check n go installment loan?

The loan will be a default loan


What happens if a loan is in default and is deceased but has a co signer?

The cosigner now owes for the loan.


What happens if you default on a loan used to purchase a lot?

If you default on a loan used to purchase a piece of property you usually lose the property through foreclosure.


What happens if a loan is sold with recourse and it goes into default?

what haapend if a loan is sold with recourse and it goes into defualt


What happens if someone has a loan default statement?

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.


What is loan default?

If you don't pay a loan when due, you default on the loan.


What happens if you are in default on a car title loan?

The creditor reposseses the car, and you take the bus.


What happens if you default on a payday loan in Georgia?

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 a parent cosigns a loan that goes into default and the loan is paid in full what happens to the default status on the credit report can it be removed?

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.


What happens if you default on a graduate student loan?

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.


What happens if default on an unsecured loan?

It could be recovering the money from your employer or even a legal pursuit.


What happens to the cosigner if you are in chp 7 bankruptcy and you default on your car loan?

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.