alexander M asked:
I have 5 internet payday loans and cant afford to make the payments each payday any longer. What will happen if i default on these loans? How will the lenders try to collect? Will they be willing to work out a repayment plan with me? Can they continue to charge me interest while the loan is in default? I reside in the state of Texas.
I have 5 internet payday loans and cant afford to make the payments each payday any longer. What will happen if i default on these loans? How will the lenders try to collect? Will they be willing to work out a repayment plan with me? Can they continue to charge me interest while the loan is in default? I reside in the state of Texas.
Tags: Loan Default, Payday Loan, Payday Loans, Repayment Plan
August 24th, 2008 at 7:24 am
Contact them immediately and they may work with you. If you don’t pay and you don’t contact them, it will be bad news for you. It all depends on how your contract was set up. If you gave them any bank account information, they can overdraw your checking account. They get their money, your account is negative and now you have overdraft fees. If you didn’t give them any account info, they can send the debt to a collections agency. This will hurt your credit. And yes, they can continue charging you interest while the loan is in default. As a matter of fact, they have the right to raise the interest rate much like credit cards do if you don’t pay on time. These payday loans are bad news!! Good luck!
August 25th, 2008 at 4:47 am
First, they will continue to pull the cash out of your checking account which will result in bounced check fees and, potentially, being reported to Chexsystems and having your account closed.
If you want some more information, I would check out…
Take care.