Q&A: What hapeens when a payday advance loan goes unpaid ?
Question by chasead95: What hapeens when a payday advance loan goes unpaid ?
My sister-in-law has about 4 payday advance loans that she’s not paying. I’ve told her that she could go to jail for this. She says no she cant because it’s a loan, not a bad check. Does anyone know?
Best answer:
Answer by random_synchronicity
Normally when taking out a payday loan you have to write post-dated checks which they then will cash once the agreed upon day arrives. If there isn’t money to cover the checks when they attempt to cash them, then they will file hot check charges against her and she can go to jail especially if she knew the money wasn’t going to be available since that’s theft by deception.
What do you think? Answer below!
can you say fraud? yes if she knowing wrote checks with insufficient funds, she can be arrested for fraud.
I do not think she will go to jail. The company can sue her. They can put a claim on her if she ever works or get s TAXES they can intercept her money. They can report her to the credit agencies that would limit her ability to get any kind of loan, and damage her credit. But no , She cannot go to jail. Unless she used someone elses name or a fake account, just not paying is not grounds for incarceration.
How did she get 4 payday loans without paying the prior ones? She went to 4 different places? She can go to jail since when the loan place deposits her post-dated check, it will bounce, and since paydayloans are usually several hundred dollars, and she has 4 of them, she will go to jail. It will turn into a quite lengthy, expensive battle in which the payday advance business will win. Your SIL will have to pay not only the money she owes them but any legal fees incurred. Not to mention bank fees for NSF, and the payday place’s returned check fees. She may as well just suck it up and pay what she owes or it’s going to cost her more in the long run than what she initially owes. If she owns a home, they can place a judgment against it that will need to be paid before she can sell or refinance it. They can also garnish her wages. She needs to just pay up before she gets into serious legal trouble.
Well, technically it IS a bad check. When the payday loan places try to cash her check and find that it has insufficient funds, the normal course of action will take place. They will most likely try to contact her, tack on insufficient funds charges (as will her bank too!).
It’s sometimes hard to prove, but if the law can show that she wrote the checks and knew that the funds were not there, yes, she could go to jail. I think it’s considered fraud.
She wont got to jail, but it will get sent to collections. They can sue her and get a judgment….her wages and/or bank account can be garnished.