Can I Be Sued by My Payday Lender? Yes, you can. If you fail to pay back your payday loan, your lender has every right to take you to court to get the money back that you owe them.
Can I Be Sued by My Payday Lender – Key Factors:
- Your payday lender can take you to court. If they can win you must pay what the court demands.
- It’s in the best interest of the payday loan companies to work with the borrowers to work an alternate plan to repay the loan.
- If you don’t pay back your loan your credit score can be impacted. Getting future loans will be much harder. Money can be taken from your paycheck and given to your lender if you don’t pay back your loan.
- If you receive a summons for court, show up. Not showing up could lose you the case or worse. But it is very unlikely that you would go to jail.
- If you know you will not be able to repay your loan contact your lender and work with them to find an alternative. They may change your repayment amounts and schedule to help out.
Can I Be Sued by My Payday Lender?
Yes. Payday lenders can take you to court. If they can win you have to pay the lender what the court demands.
Having said that, payday loan companies want to work with borrowers. They’d prefer to get the money the way it was initially laid out in your original agreement. This is in the best interest of the lender and you. It’s easier. It’s less damaging to your credit if you can work out something with the loan company.
What If I Don’t Respond to My Lenders Requests?
If there’s no resolution and you don’t respond to their requests to work toward a solution, they can take you to court. Again, it’s the lender’s last choice. It’s expensive for them, it takes their time and they don’t always win.
Will My Payday Lender Sue Me If I Don’t Repay My Loan?
You can be sued by your payday lender if you don’t repay your loan. When you don’t pay back your loan, there are many not-so-nice things that can happen. As mentioned before, your credit score can be impacted. This can make it harder to borrow money in the future. The lender could take some of your wages which means, money will be taken from your paycheck and given to your lender. Debt collectors could begin contacting you with letters, phone calls, and emails.
Could I Go To Jail?
In the event that you do not repay your loan and the lender does take you to court, it would be very unlikely that you would go to jail. If you get a summons, go to court. The lender doesn’t want to end up in court with you but they will if they can do nothing else to get their money back.
There Are Options for Repaying Your Payday Loan
Lenders will try to work out different payment arrangements with you. They may reschedule your loan payments and often arrange a rollover. But if you don’t cooperate and you’re not willing to work with a loan company, you may get a court summons. Check your rights as a borrower too.
Small and Large Loans Can Go to Court
Lenders go after small loan borrowers who do not repay their loans. Not just the big ones. So don’t be surprised if you’re summoned to court when you do not repay your small payday loan.
If You’re Sued by Your Payday Lender Show Up in Court
If you get a court summons, show up. Never ever ignore a court summons. If you don’t show up in court, the lender often times will automatically win. It’s always in your best interest to be there and work your hardest to find a solution.
If I don’t repay my loan what will happen?
iI you don’t repay your loan, your bank account can be drained. Wages can be taken from your paychecks. You’ll start getting calls from collectors and could get a lawsuit summons.
The lender will continue to try to recover the loan even after your due date has passed where the money is owed. They will always attempt to get the unpaid money from you. That’s how they stay in business. They need to get back as much of their money as possible.
When you take out your loan, you give your lender the right to take automatic monthly withdrawals from your bank account. Once your bank account runs out and they keep trying to take money from your bank account, your bank fees will pile up. After that, they take money from your paychecks. It could be part of your paycheck or all of it that then goes directly to the lender to repay your loan.
And, remember, while you’re not repaying your loan, you’re still accruing interest. The amount that you owe is actually getting larger.
If I can’t repay what do I do?
This is incredibly stressful to be in a situation where you’re not able to repay your loan. Obviously, you still have expenses like rent and food.
You do have options.
- If you can’t repay and you know this, contact your lender right away. Keeping them in the loop can help a lot. Let them know what’s happening. That’s when they will work with you to try to find a solution. Perhaps give you longer terms for repayment.
- You can also talk to credit counselors, attorneys who cover bankruptcy, or legal aid centers. They can help you decide what to do next.
- In the event that you are unable to pay your loans, you can claim bankruptcy. It should be a last resort. Bankruptcy has long-term repercussions. In particular, they affect your credit score and could damage your chances for future loans.
Payday loans are designed for short-term solutions. They are meant for emergencies and unpredictable one-off payments. They should never be used to make it from one paycheck to the next paycheck on a regular basis.