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Punishment for not Paying a Payday Loan




Pay day loans are classified in the financial market as an unprotected loan. To check out the type of unsecured loans, they charge higher interest levels. To justify the high rates, debtors are given the convenience of fast access to cash. Consumers do not have to provide their credit file, and payday loan companies shall not look into your credit score. Unlike unsecured loans offered by lenders, you do not have to pledge any property as guarantee to obtain a payday loan.

Payday loans are not permanent fixes to your financial problem. If you apply for a payday loan convinced that you can rely upon it to resolve your long-term problem, you might be in deeper arrears than before. Thus, it's important to pay off your payday loan as as you can soon, since there is absolutely no real way of escaping this kind of loan. If you are not able to pay off your loan, you must make to handle the consequences.

Below are a few of the consequences for ignoring your payday loan:

Overdraft Charges - Banking institutions can levy high overdraft charges and penalties if your accounts has insufficient cash which induced your check to bounce.

Penalty from Lender - The wage advance company can require you to pay penalties predicated on the stipulation of your contract.

Humiliation and Harassment from DEBT COLLECTORS - In case your unpaid loan is described a variety organization, you might be subject to frequent humiliation and ignominy among your peers and the community. They have the liberty of calling you multiple times including contacting your home, work place, or any other amount.

Threat - Debt collectors use emotional abuse with threatening message or calls also.

Marred Credit Rating - Non-repayment of pay day loans can be reported by the lending company to the three credit bureaus in america, causing severe damage to your credit history. In addition, by the right time you choose to pay off your lending options, lenders hardly ever report the repayment to credit bureaus. If this happens, it shall be hard for you to qualify for other loans.

Legal Action - Your payday lender gets the right to utilize legal action under the court of law for writing bad checks. If you are proved by the court guilty of writing bad bank checks, you can spend unnecessary time and money. You must shoulder legal professional fees also, which will be much bigger than your preliminary repayment amount.