Legal Will Payday loan company sue me over a few hundred dolllars?
I took out a payday loan that for $600 dollars a long time ago. Since then my account was sent to a collections agency. I recently made a payment arrangement and manged to get my balanced down to $233.00. However, I've become unable to continue the arrangement and asked if I could send $25 dollar payments every month. They aren't willing to do that and they have threatened to take me to court and add on court fees as well. Are they just threatening me so that they can get the $233 I owe them or is it really feasible that they should sue me over such a small amount I owe them? It seems like they would lose more money if they were to sue me. Plus I still intend on sending them some money every month until I can pay off the balance. Thank you for your help!
- Huh?Lv 77 years agoFavorite Answer
The loan company has assigned your debt to a collection agency which specializes in collecting these small amounts of money. The loan company is only going to get a portion of the money back and will let the collection agent keep the rest.
The collection agency is geared up just to deal with these small loans. they will eventually file suit, assume you won't even show up at court, get a summary judgment against you and continue to try to collect.
So yes, they will sue you.
- ?Lv 77 years ago
Yes, they will definitely sue you and they won't lose any money doing it because you will also be ordered to pay the cost of them suing you.
By the way, what comes next after they win in court is that they'll garnish your pay wherever you work. And the big downside to that is that many companies don't want to deal with that sort of thing, nor do they care for employees who don't meet their financial obligations, so you will be at significant risk of getting fired.
You need to find the $ to pay these guys off ASAP.
- Dan HLv 77 years ago
They will hound you to the grave over 10 bucks. Any chance they have of adding to your total, they will take it. Yes, they will sue you.
If they do, do NOT skip the court hearing. That will make it even worse for you as they will hold all the cards. Sometimes judges get tired of these companies taking advantage of people and reduce fees, but only if you show up, show humility and don't lie.
- 7 years ago
Yes, of course. You signed a legal document when you took out the loan and it is past due, so they WILL win. You should just pay them the $233 so that way you don't have to waste your time in court. Maybe you'll be lucky enough to pay it before it hurts your credit.Source(s): I work at a payday loan company
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- scott bLv 77 years ago
Count on it.
They service THOUSANDS of people. Your $233 might not seem like much, but if they left everyone do it, it would cost them Millions. You are, what is called an "example".
- wizjpLv 77 years ago
All day and all night. THEY Don't lose a thing; all the costs get added on to YOUR tab.
- KennethLv 77 years ago