Am I going to get arrested for not paying my payday loan

26 December 2011

Payday loans can be expensive and difficult to handle if not repaid within the stipulated time. It is a small loan that can be applied to deal with any unforeseen financial emergency. Whether you need to repair your car, home, have to pay off pending bills or any other urgent expenses, these loans can be applied to take care of any sort of urgent needs.

It is easy to qualify for payday loans. You will just need to meet a few requirements to qualify. The very first requirement is that you should be currently employed and your monthly income should not be less than £1,000. Being employed and withdrawing fixed salary will help lenders identify your repayment ability.

An amount up to £1,500 can be gained upon approval against payday loans. You will get one month to repay back the borrowed money. It is important that you repay back the borrowed money within the stipulated time to avoid adverse credit rating. If you are unable to repay a loan, lenders may attempt to collect the money itself or may sell the debt to a collection agent.

Further, payday lenders have the right to file a lawsuit against you to obtain a judgment for the balance of the debt. Once the lenders have obtained a judgment against you, they can enforce the judgment in civil court. The various methods of enforcing a judgment include bank account levy, wage garnishment and property liens.

Failing to repay a loan is a civil matter and not criminal. Thus, you are not going to get arrested for not being able to pay back a payday loan. It is a common threat that most of the lenders use for check fraud. Unless a lender is able to prove that the borrower have no intention to repay back the borrowed money, it is a completely groundless threat.

Payday loan is without a doubt a favourable solution for expenditures that has cropped up all of a sudden. Apply for it and make the best use of its benefits and at the same time do make repayment on time and stay away from unfavourable circumstances and penalties.

Summary

If you have applied for a payday loan and unable to repay it back you are likely to be worried if you are going to get arrested for not paying back the money. You can go through the article and know the threats that you may face when trapped in such circumstances.