There are tons of payday loan consumers out there who are afraid because of their unpaid commitments. Needless to say, there is a decent reason why most of these payday lenders threaten customers in paying back a payday loan in just a short period of time. There is a serious consequence waiting here. If you are not going to come up with money, you will most likely face threats.
Several threats are commonly used by these licensed private lenders. Among the ones you will hear are:
- You will be arrested by someone.
- You will be sued for fraud.
- You will be sent to jail.
Now, the big question is – are any of these true? Are payday lenders really capable of suing, arresting, and putting you to jail because of a payday loan? Well, the honest answer is no.
To default on a payday loan is not yet a crime. You cannot be sued for criminal charges because of it. This implies that you will not be arrested, prosecuted, or even put behind bars because of fraud, or breach of contract. Nothing can be used to threaten you by these payday money lenders.
To make false threats so that debt may be collected is not legal to all states known across the globe. For instance, you have a payday lender who has threatened you with the statements given above, or anything which is similar to it, there is a big possibility that the one you have been working with is facilitating an unlicensed, or illegal business. This is a typical case if you receive a payday loan from an online company.
More about Payday Lenders
Almost 90% of the internet payday lenders out there are not licensed. This is the sad reality. This shows that they are not legally capable of pursuing any legal civil action against you. As this is the case, they are most likely going to threaten customers to pay since they are not successful in their gathering of payments yet. They do not have any other means to get the money they have invested on back. They still cannot take you to court for this. There are states in which payday loans are not yet allowed.
Do not get the aforementioned wrong though. When it comes to licensed, and legal payday loan lenders, the idea is the other way round. They have all the means to file a lawsuit against you if you will not be able to settle the payment. The purpose of this is to get a judgement for a wage garnishment. This is also the only opportunity for them to be repaid.
In order to not face civil action, your communication lines should be kept open all the time. To sue you will take a tenfold of paperwork, time, and money. Nobody will ever want them. The best thing that you can do if you cannot pay yet is to talk about the situation so that another arrangement can be made for you.