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Punishment for not Paying a Payday Loan




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

Payday loans aren't long term fixes to your financial problem. In the event that you apply for a payday loan thinking that you can rely upon it to solve your long-term problem, you may be in deeper arrears than before. Thus, it is important to repay your pay day loan as soon as possible, since there is no way of escaping this kind of loan. In the event that you are not able to pay back your loan, you must make to face the consequences.

Below are a few of the results for ignoring your pay day loan:

Overdraft Charges - Banks can levy high overdraft charges and fines if your profile has insufficient money which induced your check to jump.

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

Humiliation and Harassment from DEBT COLLECTORS - If your unpaid loan is described a collection company, you might be subject to regular humiliation and ignominy among your peers and the grouped community. The liberty is had by them of contacting you multiple times including getting in touch with your home, work place, or any other amount.

Threat - Debt collectors also make use of emotional abuse with intimidating calls.

Marred Credit Rating - Non-repayment of pay day loans can be reported by the lending company to the three credit bureaus in the US, causing severe harm to your credit score. In addition, by the right time you choose to pay back your loans, lenders record the repayment to credit bureaus rarely. If this happens, it will be hard that you should qualify for other loans.

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