Lv 7
SINDY asked in Business & FinanceCredit · 1 decade ago

If you're unable to pay a payday loan (cash advance), what action does this result in? (see details)?

(in Virginia)

Does it result in a civil case (law suit), or can criminal charges be brought against you for writing a bad check?


No one can garnish your wages without a court order. But does this usually happen with payday loans? A lot of people say your wages will be garnished for, let's say, hospital bills. But that usually doesn't happen. Anyone have experience with defaulting on payday loans?

Update 2:

Funny that calling employers was mentioned... I know a little about this... I know enough to know that there is a law against it in this state. I don't know about elsewhere, but, here in VA, creditors are not permitted to call anyone's employer(s).

11 Answers

  • 1 decade ago
    Favorite Answer

    First don't get involved with cash advances, they can mess everything up big time.

    Some places allow you to roll-over your loan by paying the interest, this gives you more time to come up with the full amount. This in the long run costs more, if you do it more than once.

    If you already have one or more and can't pay them, talk to the lender to set up a payment plan. Let them know how much you can afford to pay each pay period and stick with it. If you can't make it in on you're scheduled day call them. Let them know that you will be in a day late.

    If you don't communicate with the lender it can result in legal actions being taken. In the form of a law suit that the judge will rule in the lender's favor. Then not only would you have to pay the loan and the interest off but now you also have court costs and other legal fees. The judge could then also have a wage garnishment placed on your wages for the total of everything.

    Source(s): Life
  • 1 decade ago

    Payday loans are considered secure obviously that is why you gave them the check. What I have seen on many credit reports is that the payday companies sell to collectors after they harass you to death. I have also seen where the payday place took the client to court. ( there is no such thing as debtors prison and this is from the experience I have dealing with people who have dealt with this also ) the debt is treated like any other collection / Garnish at the judges discretion. Just make sure if you get a summons you go to court. I have never heard of any criminal charges being brought against a client Judges know how unscrupulous payday loan sharks are

    Kourtnie Donihoo

    Debt Analyst

    The E.D.A. Group

  • You have rights regardless if you choose to pay or not. If they are seeking to collect a debt they can not call your employer if you send them a letter stating they are not allowed to contact your place of work. Also you can tell them not to call your home. They can only call you there once every week or month I'm not sure. Contact your states Attorney Generals office or research the Fair Debt Collection Act.

    It will still ruin your credit, but not your reputation.

    No matter what you signed you have these rights and there are laws protecting you even if you choose not to pay.

    Oh yeah, one more more payday loans.

  • 1 decade ago

    They make you write the check to cover them in case you don't come back and pay the debt. If they deposit it and it's bad, then yes, you can be charged with writing a bad check. It will also go against your credit and really screw it up, not to mention that they constantly call you and your employer. That will really impress your boss.

    They can bring criminal charges against you and sue you in civil court.

    Why would you get one of these loans if you weren't going to pay it back? You are hurting yourself a whole lot worse then you are hurting them.

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  • 1 decade ago

    I know you don't want to hear this, and it's easier said than done - but the basic thing is to never, ever, go to these payday loan places. It's complete usury and even illegal in several states.

  • 1 decade ago

    I wouldn't worry about it. Let them sue you for it, and then let the Judge tell them that their interest rate makes it illegal, whether you "signed" or not. Case would be dismissed. However, your credit report will show very negative results, ya'know?!?

  • 1 decade ago

    I think your debt would be passed onto collections and it would then affect your credit, and eventually if you dont pay for a long can result in a lawsuit

  • 1 decade ago

    They will come to your employer and garnish your wages, along with a hefty interest penalty. Your employer will not appreciate this and most likely consider you irresponsible, jeopardizing any future chance of promotion.

  • dude
    Lv 5
    1 decade ago

    these guys will make your life miserable. i don't think it is a criminal action at first, but the interest is insane. it is very easy for them to garnish your wages. find a way to pay them, quickly.

    Source(s): i had it happen. my employer was mad because they kept calling.
  • Mimi
    Lv 6
    1 decade ago

    It will be a civil case and really messes up your credit score.

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