Q:

What happens if a payday loan is not repaid?

A:

Quick Answer

According to Money Super Market, when someone does not pay back a payday loan, interest and late charges are accrued and the debt will be sent to a debt collection agency. Payday lenders usually send the debt to a debt collection agency after a period of about two months.

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What happens if a payday loan is not repaid?
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Full Answer

Borrowers can talk to payday lenders and usually work out a payment plan, according to Money Super Market. Payday lenders also have the responsibility to treat borrowers fairly if the borrowers are experienced trouble paying back the loan. Consumers who feel unfairly treated should complain by writing a letter to the lender.

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Related Questions

  • Q:

    How do you apply for a payday loan?

    A:

    Customers can apply for a payday loan in-person at a lender with proof of income and a valid checking account, according to Advance America. Some payday lenders also allow customers to apply for loans online through their websites, such as Ace Cash Express.

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  • Q:

    How do you get a payday loan?

    A:

    Obtain a payday loan by researching different lenders in your area. After selecting a lender, complete an application, and provide the required documentation. Review the loan terms upon approval, and then sign the required paperwork.

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  • Q:

    How do you get a payday loan online?

    A:

    Get a payday loan by filling out an online application form or submitting a faxed application, states About.com. Upon application approval, the lender deposits the funds into your checking account and electronically withdraws the finance charge or the loan payment from your bank account every payday. Lenders market their online payday loans through paid ads, online search, emails or referrals.

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  • Q:

    What is meant by "payday loan consolidation"?

    A:

    The phrase "payday loan consolidation" means that a consumer with multiple loans has the option to combine these into a single one. This is often done by working with a payday loan consolidation company that pays off the consumer's payday loans. The consumer then pays one monthly payment to the payday consolidation company. This practice is very similar to debt consolidation.

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