What Happens If You Get A Payday Loan And Don’t Pay It Back

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If you don’t pay back the short term loan, you have to go through some legal procedures like deferred deposit transaction, wage garnishment or lawsuit filed against you.


If non-repayment of payday loans is a big concern for you, you may fall in the default case. In that situation, the lenders may use different methods to settle the amount from you. They may do it by themselves or they may try to settle the amount by bringing the third party into play. These are the most common methods used by the lenders to get back their required loan.


When you are taking the payday loan (generally ranges from £100 to £1500), the lenders might have asked for a post-dated cheque. The cheque gives access to the lenders to withdraw the money from your next paycheck if you fail to pay back your instalment loan in time. It is called a deferred deposit transaction.


Then the lenders try to contact you and your friends or your family. But they are not allowed to do anything they wish. According to CFPB (consumer financial protection bureau), there are certain limits for lenders to not cross. They are:


  • They can’t use abusive language and unfair means to collect the debt
  • They can’t call you outside the time limits of 8:00 AM to 9:00 PM.
  • They can’t call you at work
  • They can call your family or friends only to know your location. They can’t reveal your debt details to your family or friends.

If you face any legal problems with the lender or if you found any payday owner to breach the rules, then lodge a complaint to the attorney general or to CFPB.


If these things don’t work out, the payday loan owners may hand over your account to a debt collection agency. The collection agents have a main motto to close your debts. Initially, collection agents try to contact you as the payday lenders did. But everyone is not the same. Some may threaten or abuse you to settle the debt. At these situations, you have nothing to worry as CFPB can come to your rescue.


The agents can even threaten you to file a criminal case against you. But remember that loan default is not a criminal case. You can neither be arrested nor charged. But, if you neglect the court order, you might have to face charges.


If the court ordered the lenders to withdraw some amount of cash every payday, it’s called wage garnishing. It can be a consequence but not certain as neither lenders nor agents are interested to proceed legally.


If you are in a position to be not able to pay the loan, then you can do these things to avoid the consequences of making it to court.


  • If a lender calls you, don’t ignore their call. This is a good chance for you to ask for some negotiation. The lenders have no intention to get the full amount from you. So it can be a great chance to ask for some reduction in installment repayment.
  • Extend the pay date till the time you get the sufficient amounts of funds to clear off your debts.
  • Contact a local consultant to plan your budget accordingly and pay back the debt.
  • Ask your friends or family for some financial help.

Don’t curb your necessary needs. We at CashUSA24/7 offer short term instalment loans at a low rate of interest and with a regulated system of lending. So, you don’t have to face much heat while taking and even after taking the loan.


Apply for your loan on CashUSA24/7 and we keep your details safe. We offer you friendly assistance and support. You don’t have to worry about the long process and paperwork. We cut short the process and let you go through with ease.


So, if you have financial needs, don’t hesitate to apply with us and the fast cash loan will be delivered at the express pace on the same day (or next business day).