Q&A: What happens if a cash advance loan goes unpaid?
Question by pretty_girl_tc: What happens if a cash advance loan goes unpaid?
I have a cash advance loan out and don’t have the cash to pay it back. If the post dated check goes through I will be in major debt. I wanted to put a stop payment on my check. What action will the lenders take?
Best answer:
Answer by Tim S
What is predatory? A short term payday loan that charges you a fee of $ 15 to $ 25 per $ 100 loaned for two weeks or a $ 35 NSF and daily overdrafts that can cause more NSF fees from a bank?
You needed a loan that apparently you were were unable to get from your bank and now you want to forgo paying it back by placing a stop payment on the check. You received a service for a fee and stopping the check for false reasons is fraud.
Depending on who you received your loan with, they could cause you a lot of grief. If they are reputable then you should call them to work out a payment plan (not a rollover option). No lending institution wants a loan to default.
Good luck
What do you think? Answer below!
They will probably either send bill collectors after you, or they will pursue legal action.
They will harras the hell out of you by calling you at your place of employment, at your home. Depending on the size of the loan they may start legal procedures but that is usually for amounts over 1500. If they are one of the kinder ones they will offer for you to pay it in 2 installments as oppossed to the lump sum. If it goes unpaid for 1 full year, they will charge the amount off and sell your account to a collection agency who will probably offer you a settlement of 50 to 70 percent of the balance.
They will take you to collections and keep calling you daily and your references. They may also take to to small claims court after a while to try to get their money. If your worried about bouncing the check and getting in trouble legally, don’t be. The payday loan is a loan and nothing more. The only action they can take is the same as if you didn’t make your credit card payment.
I hope this helps you. I hate payday loan places, because of their predator loan practices.