5 Responses to “Q&A: If I have received payday loans from multiple companies and haven’t paid any of them back yet what can they do?”

1. Sageofwinds says:

   December 24, 2011 at 4:53 am

   This is why those payday loan commercials have the small print that reminds people to borrow wisely. If you lost your job after taking out those loans, talk to Human Services, and they might be able to help you. If you’re still working, please make payment arrangements and remember the lesson you learned. The longer you sit and wait, the worse the problem will get.

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2. MVD34 says:

   December 24, 2011 at 5:07 am

   Payday lenders are among the most aggressive collectors out there — the odds say that if they could, they would have done it already.

   A standard rule of thumb in the business is that the fewer the options the lender has the more aggressive the tactics to collect.

   The long answer is that they must sue you first and get a judgment from the courts to garnish your wages. The first is pretty easy but, relatively costly and time consuming. The second is harder to do and by no means guaranteed. For most companies, the debt has to be more than $ 10,000 to justify the expense in time and money.

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3. Claudio H says:

   December 24, 2011 at 5:52 am

   Honestly its not in your best interest and it can get you in a lot of debt. But sometimes its the only choice. Its tough.

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4. meowmixx says:

   December 24, 2011 at 6:46 am

   Some companies will sue you for the state maximum. What they do is charge you for every second they spend on your account to boost what you owe them. After they sue and win, which they will because you owe them the money, they will garnish your check.
   Before they sue you see if they will work with you and allow you to set up a payment plan. The better companies will do that.
   Make sure to only lend from companies that are part of the CFSA, only borrow what you can payback if you have to borrow, and pay it back fast don’t get stuck in the loan cycle.

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5. Heather says:

   December 24, 2011 at 6:48 am

   Spending more than you earn is always a bad thing, and payday loans are a bad and expensive “solution” to money management problems. Payday loan companies take advantage of your need for cash and rake in billions of dollars a year in fees, at your expense.

   You do need to find a way to pay back the money you owe. Payday loans are a very expensive mistake and I hope you learn something from this.

   If you signed the loan and you live in a community property state (where all debts incurred are your responsibility), then the paper they have could be upheld in court.

   I’m not sure how much was borrowed. Normally, a creditor would need to take you to court and get a judgment in order to garnish wages. Payday loan companies are relatively new on the scene, and they may have tools in place (that you sign) enabling them to attach wages in states that allow it, in the event of default.

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