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johnsharp

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What can happen to a payday loan borrower if his payday loan is defaulted?

Hello friends, I have borrowed payday loan from a financial company and now they are thinking to take me to the court because I have signed a check for the loan repayment and it has bounced. However, the payment was bit late and it was also not full. Now the problem is they don’t want this money and they want me to go to jail as the lenders don’t seem to work with me anymore. So, I am really in a mess and want to know what will happen now, in case when it was defaulted payday loan. Any help in this context will be greatly appreciated, thanks in advance.

468 day ago

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mariawillson 		Actually, payday loans are short term loans particularly for peoples who have bad credits. This loan option is also good for the people who don’t have any collateral. But many times the borrowers of this loan become default if they don’t have the money to repay. Hearing loan defaulter is very awkward as it is not a good thing. So, if the borrower does not pay the loan amount then lender will not let the borrower to the jail but can do several other things like –
• They can go to the collection company for the collection of the loan amount they have given. But this option is totally up to them and different firms have different options.
• As payday lenders don’t have the right to take any legal actions on the payday loan given they can give some advice or workout some other options to repay the loan.

Last but not the least the utmost thing that they can do is they can make your credit score to negative and you will not be able to get another no teletrack payday loan until you pay off the previous one. So, don’t worry about it and try to work out the thing with the loan lending company.


Posted 468 days ago

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