![]() ![]() ![]() However, they can only take you to a civil court and not a criminal court. A payday lender can take you to court for defaulting on a loan and if you violate the terms of your loan agreement. Payday lenders are good at making all sorts of threats, but can they sue you? Well, the answer to this is yes. Understandably, the courtroom is the last place they want to be for defaulting on a loan. Many individuals who've defaulted on their payday loans are particularly terrified of a payday loan lawsuit. In most states, it's illegal for a creditor to even threaten a borrower with arrest.ĭon't let debt collectors threaten you with jail time. However, the consumers were technically jailed for contempt of court charges for not appearing at court hearings after ignoring a payday loan court Summons. ProPublica shares several stories of consumers who spent hours or days in jail for owing a debt with a payday loan company called Loan for Less and failing to appear in court. After you miss your court date, the payday loan representative can request the court for a warrant of arrest for contempt of court, and you may find yourself in jail until you pay bail or make a down payment on your loan. This type of arrest normally occurs if the debtor fails to appear in court for their case hearing and not specifically for owing the debt. Let us explain.Īccording to CNBC, there have been reports of individuals getting arrested for falling behind on their payday loans. However, you can be arrested for not showing up in court when you're sued for a payday loan debt. You cannot be arrested for not paying a payday loan. Some people might even be worried about the possibility of going to jail for not paying their payday loans, but is this even legal? If you've defaulted on your payday loan, you might be concerned about the consequences. ![]() Let's dive right in and respond to these concerns.Ĭan you go to jail for not paying a payday loan? Are payday loan court Summons legitimate?.Can you go to jail for not paying a payday loan?.This drawback is the most common reason people default on payday loans. However, these loans attract high-interest rates and fees. Payday loans may seem convenient and offer a short-term solution when you need immediate cash to cover an emergency. You can use SoloSuit to respond to a payday loan debt lawsuit and win in court.ĭid you know about 12 million Americans use payday loans annually? This fact comes as no surprise, given that payday loans help fulfill the financial needs of many working Americans who can't access traditional loans. While it's illegal to be sent to jail for owing a debt, the creditor could obtain a warrant of arrest against you if you fail to appear in court when you're sued for the debt. Summary: There are instances where you can get arrested for not paying off your payday loan. ![]()
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