Can I be arrested for default on Payday Loan?

December 19th, 2008 at 11:15pm By Michelle
Under Auto Financing

Are you asking yourself “can I be arrested for default on a payday loan?“ If so, there are a few things that you should know. There are no debtor’s prisons any longer. If, however, you intentionally defrauded the payday loan company by lying about employment or committing some sort of fraud on your paperwork, then you can be arrested as fraud is a criminal offense.

Thus, the answer to the question, “can I be arrested for default on a payday loan” lies in your own motives. If they are honest and you have not committed any sort of fraud in obtaining your payday loan, then you will not be arrested if you default.

For the most part, if you default on your payday loan due to circumstances such as you cannot pay the debt, the loan company will seek a judgment against you in civil court. They can then enforce this judgment and attach any of your assets. This includes your bank accounts and even your wages. Payday loans are made to those who are working and who have steady income coming in. They are usually secured by your next paycheck. If, for example, the company goes out of business and you do not get your next paycheck, they cannot arrest you – you did nothing wrong.

On the other hand, if you defraud the payday loan company by saying that you work at a certain place and not really having a job, then you can be arrested for committing fraud. This is a criminal offense and can carry with it criminal penalties, including jail time. If you are asking “can I be arrested for default on a payday loan,“ you should check out
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