What are the consequences on defaulting on payday loans?

Asked over 1 year ago - Denver, CO

I have several payday loans and have no funds to pay them. I have had my hours and pay cut on my job.

Attorney answers (4)

  1. Daniel Nelson Deasy

    Contributor Level 20

    5

    Lawyers agree

    Answered . You can be sued for breach of contract and a judgment can enter against you -- which will allow PayDay Loans to garnish wages, bank accounts, etc.

    Good luck.

    In no way am I offering you legal advice, and in no way has my comment created an attorney-client relationship.... more
  2. Deborah F Bowinski

    Contributor Level 17

    3

    Lawyers agree

    Answered . They can put your post-dated check through your bank account and cause all your other checks to bounce. If your check to them bounces, they will eventually sue you for three times the face value of the check plus the costs of collection.

    If you also have other debts that you are struggling with you may benefit from a consultation with a bankruptcy attorney to determine whether that is a reasonable solution for you.

  3. E Dwight Taylor

    Contributor Level 13

    1

    Lawyer agrees

    Answered . Not being able to pay on a payday loan is a breach of contract. You don't need to worry about a "hot check" problem, but you will face harrassment on the collection of the debt. You might consider a bankruptcy, but you should speak to a lawyer about your situation. Good luck!

    This general response is not intended to be legal advice because I don't have all the facts. The particular facts... more
  4. Michael Charles Doland

    Contributor Level 20

    2

    Lawyers agree

    Answered . The bottom, bottom line is a civil judgment against you. Nothing criminal.

    The above is general legal and business analysis. It is not "legal advice" but analysis, and different lawyers may... more

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