Rating 4, 8 (25) · Free · Finance · However, they can only take you to a civil court and not to a criminal court. So more often than not, a payday lender would threaten to sue, but they. No, you can't be arrested for not paying a payday loan. However, if you are being sued or a court judgment was entered against you and you ignore a court order to appear, a judge can issue an arrest warrant against you.
Default on a payday loan can result in bank overdraft fees, collection calls, damage to your credit score, a day in court, and a garnishment of your paycheck. While payday lenders can take you to court, it's important that you understand that failing to repay a payday loan is not a criminal offence and you cannot be sent to jail, unless you have deliberately applied for the loan with no intention of repaying it. Mobile Paycheck Advance Apps work with iPhone and Android, and many offer payment on the next payday. Even so, under the current payday loan scheme, a borrower whose rights have been violated in connection with a payday loan or title loan can bring an action to recover actual and consequential damages, punitive damages, and reasonable attorneys' fees and costs.
According to the Division of Financial Institutions, a payday loan database would help lenders identify if a borrower is eligible for the loan under state payday loan laws. Recently, Judge Gonzalez approved a class action settlement involving Rapid Cash, one of the largest payday lenders in the state, after it was discovered that the payday lender had obtained unlawful default sentences against some 14,000 Nevada residents. With more than twice as many payday loan stores as casinos, you'll find a payday loan store at almost every major intersection in Las Vegas. In addition to the disclosures required by the federal Truth in Lending Act and Regulation Z, payday loans to Nevada consumers must describe each charge charged, regardless of the name given to the charge, in writing, before making the payday loan.
If you don't pay a payday loan, the payday loan company has several legal remedies, including wage garnishment, garnishment and lien, which is a legal claim or a right against a property.