Can They File Criminal Charges If I Owe For a Payday Loan?

Payday loan companies have to deal with defaulting on payday loans all the time. Since they do not do credit checks and their target customers are ones with financial troubles the payday loan companies have to be ready for customers to default on their payday loans. Their tactics when it comes to defaulting on payday loans is turning your debt over to a collection agency or continually contacting you until they get their money back.

Criminal Charges?

In most states you can not be brought up on criminal charges for defaulting on a payday loan. Collection agencies and shady payday loan companies can threaten this charge however, because payday loan law is not well known. If they do it is most likely a bluff. Since these companies target people that are very likely to default on their loan there is not much the authorities will do to help them out. In fact most authorities and lawmakers want to pass laws to hinder the payday loan industry.

When a payday loan contract is drafted the lender knows that the debtor does not currently have the funds to repay the loan. Include this with, at times, incredibly high interest rate charges and it can be tough to pay off payday loans if let spiraled out of control. Mostly for this reason you can not be brought up on the criminal charges. What can happen to you is that you can be blackballed by the payday loan industry. If you have defaulted on a payday loan and never paid it back, it is going to be really hard for you to get another payday loan. So whatever you do don’t default on a payday loan just because you think you can avoid paying it. You never know when you will need another one.

Ashley Volleh– Power Payday Loan Team