Can you go to jail for unpaid payday loans?
You may have heard the question many times before. People who are asked that question often have no idea what they’re talking about. They’ve probably been asked that question a thousand times, and they have no idea what the answer is. For those that are really confused, let’s revisit the question: Can you go to jail for unpaid payday loans?
The answer to that question is yes, you can go to jail for this type of loan, even though the laws don’t make it easy to obtain them in the first place.
Can you commit fraud when you take out a payday loan?
When you take out a payday loan, you agree to pay back the money within a specific time frame. At that point, the loan is considered paid back. If you don’t pay it back on time, that means that you have committed fraud (a federal crime), and that you might even go to jail.
Some other crimes that are commonly associated with this kind of criminal activity include tax evasion and fraudulency. In fact, if you don’t pay your loan back, you could be facing jail time of up to one year on most cases.
It’s important to understand that these loans are not always illegal. A loan is a loan, whether you pay it back on time or face jail time for it. These loans are just as much an act of financial irresponsibility, as are any credit card or bank loans.
Payday loans are simply a way of taking out a short-term cash advance that is required to be paid back within a period of time. The lending institution may charge a fee for the amount of the loan, but it is generally fairly small.
High interests and penalties
Because there is very little in the way of penalties for not paying back your loan, many people end up taking them out repeatedly. This is something that should be avoided at all costs. These loans are not usually considered an outstanding debt, they carry very low interest rates, which means that you won’t really feel the pinch until you haven’t received your next paycheck.
Once you are behind the amount owed on the loan, the interest starts to build up dramatically. It will take several months before you get to the point where you must pay it off completely.
Because of this very high interest, you need to only take out payday loans for very specific reasons. If you need money to go on an extended trip, for example, you shouldn’t be applying for more than a hundred dollars’ worth of borrowing.
This type of loan is meant to be used on trips that last no longer than a few weeks. If you do end up in legal trouble with a loan like this, however, it is possible for you to negotiate a payment plan with the company that gave you the loan. In some cases, you can negotiate to have your loan forgiven altogether.
Your unpaid loans
Unpaid payday loans can be considered a form of theft because the money that you never get to utilize properly can be used for anything that you want. This can be used to repair damage to cars, to buy new clothes or to even go on vacation.
The problem, however, is that there are laws in place that are designed to prevent people from abusing the system. In fact, one state in the U.S., Mississippi, has actually been named the nation’s “Rice Bowl Capital” due to the large number of cases and lawsuits that are brought forth against companies that provide this type of lending.
Legal repercussions and criminal charges
If you’re faced with an unpaid loan that you know you cannot afford to pay, or if you are facing financial problems, it is very important to speak to a lawyer. They can help you determine whether or not you can legally file for bankruptcy.
There are different ways in which unpaid loans can wind up in court. One way that they might do this is by offering to post a bond for the balance of the loan. In doing so, they promise to repay the loan to the lender if they default on it.
Another way that they might go is by entering into negotiations to make arrangements with their original lender to have the loan paid in full. However, once the original loan has been repaid, the only option left for the person who has borrowed the money is to face the charges of illegal borrowing.
The charges of criminal neglect for unpaid payday loans are very serious. They can result in not only criminal charges but could also end up with jail time. Some states have already found solutions to this problem by passing what are known as “payday loan legislative” acts.
These acts make many illegal activities that were previously illegal under federal law illegal in the state in which the borrower lives. This is the best way to avoid having to find out “can you go to jail for unpaid payday loans?”