Many payday loan
consumers live in fear everyday because of unpaid payday loans. The
reason why is payday lenders sometimes threaten customers to pay back their
payday loan debt within a short deadline or they could face serious
consequences if they do not come up with the money on time.
We have heard several threats and here are some of the most commonly used ones:
We have heard several threats and here are some of the most commonly used ones:
1.
We
will sue you for check fraud.
2.
We
will have someone arrest you.
3.
We
will make sure you go to jail.
Are these true?
Can a payday lender really sue, arrest, or put you in jail for a payday
loan? The answer is no. Defaulting on a payday loan is not a crime
and cannot result in criminal charges. This means that you cannot be
prosecuted, arrested, or put in jail check fraud, breach of contract, or
anything else that your payday lender might threaten you with.
Making false
threats to collect on a debt is illegal in every state. If your payday
lender has threatened you with the statements above, or something similar, it
is likely that your payday lender is conducting business illegally and is
unlicensed. This is usually the case if you received your payday loan
from a company online. 90% of internet payday lenders are unlicensed, which
means that they do not have the legal ability to take civil action against you.
For this reason, they threaten customers into paying them because they
know that if they are not successful on collecting the debt themselves, then
there is no other way for them to get their money back. They also cannot
take you to court if you live in a state where payday lending is
prohibited. The states in which payday lending is not allowed are:
- Connecticut
- Georgia
- Maine
- Maryland
- Massachusetts
- New Jersey
- New York
- North
Carolina
- Pennsylvania
- Vermont
- Washington
DC
- West Virginia
Storefront payday
lenders are a different case. Storefront payday lenders are legal and
licensed, which means that they can file a civil lawsuit against you.
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