I am not paying back payday loans, what threatens me? Consequences of defaults on quick loans

Payday loans are quick loans granted for small amounts – the amount of such liability usually does not exceed several thousand. More commentary at http://fastpaths.com

They are available to everyone, few requirements have to be met. This means that more and more people are choosing them, taking one payday pay for the other. What if they stop paying them back?

Payday loans and the contract

Payday loans and the contract

As mentioned in the introduction, payday loans are easily available. You can usually get them “on hand” , and the only formality to be followed is to present your ID card. Customers are most often not verified in the debtors’ databases, they do not have to provide income or employment certification. This means that even the unemployed or the indebted can get them.

And although payday loans can be a good solution when you suddenly need money, for some a quick loan becomes a way of life, one is taken out to pay off the other. Some also apply for new payday loans in subsequent Good Finances, with no intention of returning the funds thus obtained. How can this end?

In fact, all information on this subject can be found in the loan agreement , which hardly anyone reads. And there it is determined what the interest is in the event of late repayment and how the Good Finance can enforce the payday refund.

I do not pay the payday loan – when is the debt collector?

I do not pay the payday loan - when is the debt collector?

Usually , the recovery process begins first. Depending on the loan company, it can be launched even the day after the repayment date, although more often it takes place a week, two weeks after.

How is it going Initially, reminders and reminders are sent. They can be sent, although nowadays electronic messages are sent much more often. As a last resort, the customer who has not paid the loan gets a payment request.

Debt collection can be carried out by employees of the Good Finance employed for this purpose or – which happens much more often – employees of an external company. They can even visit debtors at their place of residence! And who is charged with this procedure? Customers who do not pay back payday loans.

At the same time, the recovery process, although cumbersome, does not have legal consequences – i.e. persons responsible for it cannot legally enforce a refund.

I do not pay the payday loan – when is the bailiff?

I do not pay the payday loan - when is the bailiff?

If the above method does not work and the customer still does not pay back payday loans , the lender may take legal action . Due to the fact that this requires many formalities, appearing in court, loan companies treat this solution as a last resort when other methods have failed.

It is then necessary to request enforcement proceedings. If it succeeds, the case is taken over by the bailiff, who has the right to seize remuneration, funds on the bank account, as well as movable and immovable property. At the same time, his task is to collect the debt so long that the whole is not returned. And who will be charged for this? Debtor. So it is better not to lead to such a situation.