People Are Arrested After Falling Behind On Payday Loans

Cash Advances

Payday loans, text message loans, telephone loans, online loans or short-term loans are different names for what is essentially the same product. Even though these loans are non-priority, they often cause other problems. The interest rates are usually very high and it can be easy for the debt to get out of control. Later in this fact sheet we cover alternatives to payday loan borrowing. We also cover the other common issues with these loans.

If at the end of the loan term, the borrower is unable to pay the loan in full, the loan provider must provide a 60-day grace period without additional charge. The grace period is dependent upon the borrower making an appointment with a Consumer Credit Counseling Service within 7 days and completing the counseling within the 60-day grace period.

A payday loan is usually used to refer to a short-term loan with a term of 30 days or less - so you can repay when you next get paid. More and more lenders are now offering loans with different terms, which is why many now refer to short-term loans. A short-term loan refers to any loan product that is taken for a short amount of time, usually less than 1 year.

Take you to Small Claims Court If the lender wins in court, the court might allow them to take some of your money or property. The court may also allow the lender to take money directly from your paycheque. This is called garnishing your wages.