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Laws for Payday Loans
#1
So I ran into this interesting article today browsing the internet about the laws revolving around payday loans if you don't pay back a loan: Article

 "However, virtually every Prosecutor knows that not paying a pay day loan is not a crime and will not even attempt to prosecute you.  In fact, most payday lenders know that Prosecutors have no time for a pay day lender using the state’s offices to collect their debt and crazy interest rates and will not even contact them.  They will threaten to contact them in an attempt to scare you into paying."

I was extremely interested in this quote as that is very... noticeable that prosecutors won't even pursue non-payments for payday loans. Anyone have any thoughts on this?
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#2
Surely, the people who likes avoiding paying their depths will most likely be happy if they know that they cannot go to prison if they won't pay the money they borrow from a payday loan. And if that's the case then why there are still some money lenders who are accepting payday loans? Didn't they know the risk it has?
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#3
This is really nice to know, but one thing that we need to get straight is that borrowing where we can't pay back will have a bad name attached to us and that is not good for one that is mean about doing business or anything related to that in the future. The thing is that persecutors have finally realized that payday lenders are charging higher than they should on loans given to their clients, but one should be careful too not borrow and fail to pay back.
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#4
I think Payday lenders can harass and harangue you with calls all the time. I think even if you change your number they may continue to call you. However, knowing you can't go to jail for non payment is something that should put most people's minds at ease. It is indeed frightening for most to think that we might be prosecuted above a civil level.
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#5
(01-16-2018, 09:44 AM)kgord Wrote: I think Payday lenders can harass and harangue you with calls all the time. I think even if you change your number they may continue to call you. However, knowing you can't go to jail for non payment is something that should put most people's minds at ease. It is indeed frightening for most to think that we might be prosecuted above a civil level.

I tend to agree with this, plus I'm pretty sure they can see a record of loans you have out at other places, no? Otherwise someone could just go get a bunch of payday loans from separate places and then just... not pay them back. I wonder if it affects your credit if you don't though. But considering payday loan places don't particularly pay attention to credit, probably not.
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#6
(01-15-2018, 11:32 PM)Setari Wrote: So I ran into this interesting article today browsing the internet about the laws revolving around payday loans if you don't pay back a loan: Article

 "However, virtually every Prosecutor knows that not paying a pay day loan is not a crime and will not even attempt to prosecute you.  In fact, most payday lenders know that Prosecutors have no time for a pay day lender using the state’s offices to collect their debt and crazy interest rates and will not even contact them.  They will threaten to contact them in an attempt to scare you into paying."

I was extremely interested in this quote as that is very... noticeable that prosecutors won't even pursue non-payments for payday loans. Anyone have any thoughts on this?


Hahahahah, that is AMAZING! I'm speechless...

So, America has one of the biggest interest rates on payday loans in the world, but yet no one can do anything to you if don't pay off your loan on time or....ever. What's the logic behind this? I don't get it... How come people haven't started to abuse the system?

In Bulgaria if you don't pay your loan, the lender will contact the authorities and with their permission will start to repossess your personal belongings. They could take your car, TV, furniture and if you owe too much money they have to right to take your house/apartment.
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#7
The same law applies here in our country. No one has ever gone to jail for not paying their debts. It's not a criminal act but only a civil law. However, if someone would file a case in pursuing to the higher court they can make an agreement on how to settle their debts. They can pay their debts gradually or by taking their valuable things like cars, houses, and pieces of jewelry.
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#8
Laws for Payday loans. Yes, i have read an article or law pertains to this payday loans. The law doesn't really implied any restrictions, violations or crimes for this. No one really got into the jail or prosecute for loans. Resulting to not paying loans is having a name black listed, like you can not avail another loan in any different institutions. Yes you will not be prosecuted but you will receive always a phone calls and email from collecting agencies for your dues. At the end of the day, its all about your name and credibility.
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#9
(01-17-2018, 05:22 AM)kwaikin25 Wrote: Yes you will not be prosecuted but you will receive always a phone calls and email from collecting agencies for your dues. At the end of the day, its all about your name and credibility.


So, what? I won't answer the phone, I will put their email address in my spam folder. Problem solved!  Big Grin Big Grin

I don't think not paying off a payday loan will hurt your credit score. Payday lenders are not banks and they don't check your credit score when you apply for such loan.
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#10
In the USA, the payday lenders do check with subprime credit bureaus to see if you have other outstanding payday loans. It’s not considered a traditional credit check because it is not one of the three main credit bureaus.

It is true you don’t have to pay off a payday loan. You don’t go to jail. You will never qualify for a payday loan again because you will be blacklisted.

Payday lenders could take you to small claims court but I think the cost of that is too high for the loan amount borrowed.

If you have paid back the principle amount you originally borrowed and then tell them you will no longer pay and fight with them they will eventually leave alone.


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