What happens if you don't pay on one of those payday loans?

Question

My mom got 3 payday loans to pay for car repairs now she pays 1000 a month just to those 3 and can't afford any of her other bills. She is on somewhat of a fixed income and I need to help her to stop her from working to death. I have told her just to stop paying them and let them take you to court? Is this good tip?

Answer 1

They'll actually send you off to a collection agency.  And then your SSN will be flagged and you can't get another loan through them or sometimes any payday loan company.

If you go in and ask for a repayment plan then most of them are required to offer it to you.  What that does usually is bump your next payment another two weeks and then you make small payments every couple of weeks until the loan is paid off.

Answer 2

Bad advice.  Hey, she received money didn't she?  They will come after your mom.  By the way, if the loans become uncollectable then the loans become taxable income for your mom.  Why not contact the payday loans and come up with a repayment plan?  Help your mom pay them off then stay away from these legalized loan sharks forever no matter what.

Answer 3

Unfortunately companies like this, charge extremely high interest rates (around 100%), to offer loans to high risk borrowers. Before you accept the loan, cash call must have your consent that you understand the loan terms...including the interest rate. If you signed the form, applied online and accepted the terms, etc, you are stuck. A case like this would not hold up in court. Companies like these are tough, because they prey on those who live paycheck to paycheck, and know that they will entice with these"too good to be true" loans. It will also be tough to work with them through a debt consolidation company, as they will usually want to deal directly with you, since you opened the loan yourself. Your best option would be to borrow from friends, family, or research other lenders (your bank). Borrow the money, pay back your cash call loan, and learn from the experience. Bankruptcy would also be an option, although not reccomended, but would stay on your credit report for up to 10 years.

Answer 4

They can take you to small claims court and then garnish your wages.

Answer 5

They will file a lawsuit against your mother to sue her for the amount due  along with interest and all court costs.  She signed a contract when she got the loans and the contracts are legal binding.

I've bookmarked this site to go back to...

http://www.knowledged.info/go.php?link=l...

All the best to you.