3 Responses to “Q&A: What happens when you do not pay back payday loans?”

1. Steve D says:

   January 10, 2012 at 2:34 pm

   Check the terms of your agreement – it will all depend on how the loan was secured. They will wait for a while and let the interest accumulate, but at some point will start calling for repayment. If you secured the loan with a check, they will try to cash it (if it bounces, you could be liable for fraud). If it was unsecured, they could attempt to garnish your wages.

   Log in to Reply
2. snowrider98023 says:

   January 10, 2012 at 3:31 pm

   Bubba will come and visit. Pay your loan, keep your life!

   Log in to Reply
3. Anon says:

   January 10, 2012 at 4:06 pm

   This kinda answers your question…but it’s more of a plea to just stay away from payday loans altogether.

   I got a payday loan via the internet when I was short on rent, it was the only way I could come up with the money as I had no one to borrow it from. It was almost 3 years ago, when I was younger and much more naive. I started paying it back just fine because they drafted the payments out of my bank account. I had to call them and tell them I wanted to pay it all off or else they would just draft out a $ 75 continuation fee every payday. So that alone was throwing money out the window, because I kept forgetting to call them before they would just take out the $ 75. Then I got fired from my job, so I had no income flow for almost a month, but they kept drafting out the fee which made me overdraft and it added on $ 30 to each $ 75 fee. So $ 105 was taken out of my account every 2 weeks until I got another job and started digging myself out of the hole. I tried to contact the loan provider so my account wouldn’t keep going more negative and I couldn’t even get ahold of anyone for a good week or so of calling everyday and when I finally did get ahold of someone, his accent was so thick I could barely understand what he was saying. So we worked out a 2 week payment plan for me to pay off the loan and be done with it. I did that as planned and all was well for about a month and they started charging me the $ 75 again! I was trying to pay a car payment, rent, pay back the bank, and eat all on about $ 200 a week…so needless to say, it was a downward spiral. After about 3 months at my new job, I got fired…and since I was living paycheck to paycheck, I had just enough money to pay either rent or my car payment and I chose rent. I couldn’t catch up on my car payment and ended up getting 3 months behind, they almost repo’ed it, my roommate bailed on me so I got evicted from my apartment, my bank account got closed because of the massive overdraft, and my credit is forever ruined.

   Not blaming it all on that payday loan, but that’s when everything went downhill for me financially at that time. I’m doing very well now though. But that sure was a rough patch in my life.

   Log in to Reply