It’s dismaying to hear that people still ask questions like ‘Can a loan company take you to court?’. Even if it’s not common, it can absolutely sue you.
This is hardly a secret that in order to avoid difficulties, you should always pay your statement balance in full, every month, without exceptions. Do you plan on using your payday loan the correct way? Great, then a collection agency is not a concern for you. Otherwise, it’s more likely that you risk putting in front of a judge.
Can a Loan Company Take You to Court?
Well, running late for a business meeting may be stressful, but running late on paying your personal loan can send you into a state of panic. Excuses abound for paying payday loans late, but any of them can save you from the court.
So, can a loan company take you to court? Without a shadow of a doubt, they can absolutely take you to court and get a judgment. You can go from a responsible adult with good prospects to poor, creditor cheater overnight. But you still have options to minify the negative impact. It’s in your own interest to better read over your paperwork again.
Most people don’t realize they can defend lawsuits regarding their payday loans debt. One thing is certain here, you absolutely can’t beat yourself up. It simply won’t cut it. Don’t place stress on yourself over emergency financial events which caused situations like being sued by the lending company. As long as you can keep some perspective and realize that your finances are just a business transaction, you can take the stress out of it.
Don’t fall into the habit of carrying personal debts. It can destroy your finances very quickly and as a result, take you to court. In that case, can any lending companies sue you? Of course, they can but you attempt to settle before they sue.
Don’t fool yourself thinking that if you just talk to a collection’s agency, you’ll come to an ‘agreement’ and your payday loan debt will go away. With the one goal in mind – to get as much money from you as they can, the collection agency may use often abusive or unfair methods to achieve their goal.
- That’s where the Fair Debt Collection Practices Act comes in handy big times.
Know your rights and this can help you make a plan.
Reasons Why People Get Payday Loans?
Sticking to a budget is not always easy and often people find themselves falling behind their monthly payments.
Who gets a payday loan namely?
Anyone really: teachers, truck drivers, moms, people who need medicine for themselves or their kids, people going X-Mas shopping, and the like. So, if you don’t have enough cash to pay everyday expenses such as rent, bills, food, and utilities, this payday decision may be right for you. Besides, you can find yourself in a situation where you have several different cards and statements, paying them off with a personal loan can be a good idea. Thus, you can get cash in a matter of minutes at a higher interest cost in return for that speed and flexibility.
One rule is strict here! Follow the terms of the payday loan carefully, or you could just make your situation worse.
The problem is that many people who take out payday loans have trouble paying them off quickly. So, what happens to borrowers? Can such type of loans sue you? Will you go to jail? Okay, maybe if we lived over a hundred years ago. But putting you in front of a court is one of the terror tactics used by collection agencies to get debtors to pay.
The best thing is that payday loans are available as both storefront loans and online loans. The latter options can be used by anyone sitting even in his home coach. There are no queues and no time-consuming paperwork; you just fill in an online application form at the payday advance app and wait for an online lender to give you money.
Indeed, there is no guarantee that you’ll get the money needed right off. It all depends on your situation, your credit history and the amount you need. Anyway, if you find yourself in a situation where you can’t control significant expenses that popped up, there is always a sense to try to apply for a financial help.
Can Online Payday Loans Take You to Court?
If you will hear about people in the news who have gone to jail stemming from debts owed, look for details closely. The truth is that it’s not that they didn’t pay the payday loans that landed them in jail, it’s that they defied a judge’s order to pay said debts. Do not mistake. There is a huge difference there.
Even if you’ve been served papers, don’t panic. Your first and foremost job to do is to answer the lawsuit, or else it will result in an automatic default judgment against you. At last, it can literally take years for this judgment to go away. Sure thing, you don’t want things to go that way, do you?
Struggle form payday loans suing me to recover the full face value of the debt. What are my options?
Chances are that you’ve heard this many times. But what you don’t hear that collection agencies do not have the required documentation to prove the debt belongs to the debtor. What does it mean to you? Well, as it was said earlier, it’s a well-known fact that collection agencies often use unfair scare tactics and this one is the last one they play in. So, before that moment entering the courtroom, the collection agencies attempt to get the debtor to pay something to avoid the unpleasantries of a court battle.
The truth is that they have no proof of the original contract or the debtor signature. Indeed, there is a lot to process, but what’s important is that you shouldn’t be afraid to stand up for yourself.
Got an odd phone call? Remember, phone calls can be ignored, this kind of thing needs to be in writing. Ask for the agent’s name, the name of the collection agency, the address, and the phone number. By all means, don’t give them your personal information, it’s your right to demand the verification of the debt. In case you receive a notice of legal action field, prepare a written response.
Can online payday loans sue you? Yes, of course. But as long as you know your rights and keep your eyes open, there will be always another solution. Best to talk to people that handle payday loan debt collection to get advice. Up to you, but don’t be scared.
What’s Next?
Now you know the answer to the question: ‘Can a payday loan company take you to court?’
First, get informed and learn what you can do in order no to be sued. Once you slip up, don’t wait. Call your payday loan creditors before a debt collector gets involved. It’s in your own interest to try to work out a new payment plan with lower payments you can manage.
So far you know that according to federal law, you can’t be arrested for unpaid debt, but there’s nothing to stop collection agencies to threaten you with a jail theme.
Can payday loans take you to court? Even if that should occur, seek legal assistance to minify the result. Up to you, you’d better treat your finance with care.
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