Many people take payday loans in Florida, which is why the poor economic situation exists there. Taking credit may seem easy at the very moment, but later on, it can turn into absolute hell for its users. Here is some helpful information and answers to questions about it.
What is a payday loan?
When you are financially challenged in buying an item like a vehicle or a birthday present, or any bill or payment such as electricity or rent, you tend to seek quick solutions for the problem. The immediate problem solver here is the payday loan. You take a loan, and you pay a little of it every month on a specific date.
In most cases, people tend to be unable to pay their payday loan, and more than half of those who have used a payday loan go to another institution to take another payday loan to repay the first one. And this is the spiral of hell.
Are you going to jail for not paying the payday loan?
It is impossible to go to jail for not executing the payment. You can go to jail for fraud. However, taking a loan, repaying it, and then getting into a situation where this is no longer an option is not fraud.
On the other hand, if you take a payday loan with the clear mindset of not repaying, it is a crime and is considered fraud. For this, you are indeed getting arrested.
Are you getting arrested for not paying the payday loan?
The answer is again “no”. You cannot even get arrested for not repaying your loan. Some legal restrictions and laws defend the users of payday loans, so that an arrest reasoned as “not executing the payment on time” is abolished. Nobody can arrest you for not having money, especially after declaring bankruptcy on Chapter 7 or Chapter 13.
What you can get arrested for is ignorance. After some payments are missed, it is not only the creditors asking for their money, calling you, and sending you letters, but the court will also send you letters. These are not useless. You must thoroughly read them and see if they are a summons letter. If it is, in no case should you ignore it? It might be embarrassing to ask for a day off work, but the consequences of not appearing in court on the date and time set in advance can be even more threatening. After not going to court, it is undoubtedly possible that you are going to jail, or there might be a wage garnishment procedure in action.
You cannot go to jail because you failed to repay your payday loan on time, but you can go to jail for fraud and ignoring important information.