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Can I go to jail for payday loan default?

asked by MrSoul (21)

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Tags:  crime  debt

answers

You will not go to jail for defaulting on a loan. The lender's recourse is to sue you in civil court to recover the money.

6 votes

No. The days of going to jail for loan default are long in our past. You can, however, have a lien placed on your belongings, or a negative credit report.

4 votes

A payday loan default would be a civil not a criminal matter. The only way you could go to prison would be if the loan was obtained fraudulently.

4 votes

You cannot go to jail for defaulting on a loan. It is actually a violation of federal law for creditors to even threaten people with imprisonment. Creditors can sue you, seize your property or garnish your wages, but they cannot send you to jail.

reply
posted by John (7928)
4 votes

No, you cannot go to jail for a payday loan default. If they are threatening you with jail for not paying, that is extortion and is illegal. If you do not pay, however, they can sue you for the debt.

4 votes

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