The Consumer Financial Protection Bureau reports that no one can be arrested for defaulting on a payday loan. In order to be arrested for non-payment, the creditor must go to court and obtain a judgement against the debtor. If the debtor refuses to appear, an arrest warrant can be issued.Know More
"Time" notes that some payday loan companies and collection agencies are attempting to have debtors arrested. Creditors can have a debtor arrested by pursuing legal action against the debtor and requesting several court appearances to determine the amount of debt and examine the debtor's finances for repayment. If a debtor fails to appear at a court summons, the judge can issue a warrant for the debtor's arrest. The creditor can also ask for a "body attachment" that forces the debtor to be put in jail until the next hearing or the debtor pays bail that is often equal to the debt incurred plus any additional fees granted by the judgment.Learn more about Is This Illegal?
The Consumer Financial Protection Bureau recommends clearing all outstanding transactions and checking bank fee policies before calling or visiting a bank branch to close a bank account. Some banks, such as Wells Fargo, may allow customers to close online accounts via email request or a written letter.Full Answer >
Some states have laws that allow consumers to reinstate their car loans, essentially buying back the vehicle after it is repossessed, according to the Federal Trade Commission. To do so, the consumer must pay the past due payments and any additional fees caused by the repossession.Full Answer >
CitiFinancial Auto offered loans through car dealerships to consumers purchasing automobiles, as Bloomberg Business reports. Loans made to consumers by this company were sold by CitiFinancial to Santander Consumer USA in 2010.Full Answer >
Often referred to as spot loans, payday loans are widely available to consumers with bad credit. These loans are typically approved with proof of employment, a post-dated check or bank account EFT information, and a government-issued ID.Full Answer >