Payday Loan Locations

A common question often asked about the debt of payday loan is "Can I Get arrested for default on a payday loan Payment? "There are two main reasons this issue was raised. First, many collection agencies unethical or illegal that creep or say outright that you can be arrested if you do not pay a debt of payday loan. The second is that the bad check laws do not allow the prosecution of those who write bad checks and payday loans as they often require revision, consumers fear that these laws be used against them in a situation recovery of payday loans. Here are the facts straight on the debt of payday loan and detention.

Collectors of payday loans – implying that you can be arrested for payday loan debt
Unfortunately, it is a practice common to all payday loan collection agencies mean that consumers can be arrested for the debts of day payment. In some cases, these payday loan collection agencies have fines or actions taken against them by the FTC and Attorneys General from other states to claim debtors who may be detained unless they pay. However, the most common method is to imply that his arrest is a potential impact of not paying.
Some techniques used by collectors of payday loan to understand this include: 1) Referring consumers with multiple payday loans outstanding or in default as a "repeat", 2) ask the debtor if they know that writing a bad check is illegal in your state. Technically, this is true. However, collectors payday omit that this does not apply to checks issued in the process of obtaining a loan payday, or 3) customers saying that it is "and addressed in accordance with state law and city" unless they pay their debt for a fixed (usually the same day). Again, this is technically correct. But what "found and addressed to" the media in this case is going to find your email address and a letter. Payday Loan Collection Agencies use these evil deliberately ambiguous statements to consumers lead. While the above statements are false facts, the collectors of payday loans are very aware of the misunderstanding that are being created and do nothing to clarify that most if not all, cases.

The truth about payday loans and criminal charges
Simply, the answer is that the failure of a payday loan will not result in criminal charges in any state within the United States. Bad Check laws are designed to protect traders from having someone to "buy" the products with a bad check, which in essence, stealing. They are not designed to protect payday loan companies know they are taking a risk that a consumer will not pay a loan. However, there are other important consequences associated with not paying a payday loan, including the possibility that consumers being sued in civil court (usually small claims courts). This can lead to a writ of attachment to be made and customers who have their wages garnished. Even being sued in the court of small claims will result in being served by a process server, an experience that can be very embarrassing, especially if it happens in your workplace. Many companies of payday loans are also databases report bad check, such as exploration, and can prevent you from getting a bank account in the future. In addition, most collection agencies Payday Loan now the report of the debt to credit bureaus, which will affect your credit. Impact So there without certainly not pay a payday loan when due, however, going to jail is not one of them.

About the Author:

Brent Hagen is a Senior Debt Specialist with Payday Loan Debt Assistance. Brent has over 15 years experience in consumer finance with a specific focus on subprime, credit cards, payday loans and collections. To learn more about Payday Loan Debt Assistance’s payday loan debt program, you can visit their website at http://www.paydayloandebtassistance.com/.

Article Source: ArticlesBase.comCan I Get Arrested or Go to Jail for Defaulting on a Payday Loan?

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