4 Comments

1. ಊ]aMiEಊ says:
   April 4, 2010 at 4:46 am

   they will deposit it into your account, if it bounces they will send it to the states attorney and you will have to go to court, and pay generally 3 times the amount of the loan. They will sometimes let you pay it b4 it goes to court, they usually give you about 10 days to pay. If you don’t show up in court you’ll get a warrent out for your arrest. Usually they will allow you to set up a payment arrangement to pay off this debt
   sorry, but that guy is WRONG! That is what they do in my state, maybe not his. I have had experience in this department, thankfully I was able to pay b4 I had to go to court
2. rickinnocal says:
   April 4, 2010 at 5:06 am

   They can sue you for the amount of the check plus any collection costs as set out in the contract.

   The first answer is wrong. “Bounced check” penalties such as triple damages are specifically excluded on payday loans – this is just an unpaid loan, not a bad check.

   Richard
3. kelsauc782 says:
   April 4, 2010 at 5:16 am

   Depends on which state you are living in. I know in Maine Payday loans are not legal because of there high interest rates. Just saw an artical about it the local newspaper a couple of weeks ago.
4. stacy f says:
   April 4, 2010 at 6:15 am

   The first thing that will happen is that the interest will continue to pile up on your debt. That means that a $400 loan can quickly become a $1600 obligation.

   If you don’t pay up, the lender can go to court and get a Judgment against you. When they do this, they can also collect attorney’s and court fees against you. So, that $1600 becomes $3500.

   Then, they can get a lien on your property. They can seize your checking accounts, real estate, or personal property to satisfy the Judgment.

   What happens if you don’t pay a payday loan? Well, if you took out a loan to fix your radiator, you could end up losing the car entirely if you don’t make good on the debt.