Many borrowers who took out payday loans to meet their emergencies have this question in their mind: “I took out a payday loan and I failed to repay it. Can I land up in jail or will the cops come to arrest me?“ Now, nonpayment is indeed an embarrassing situation, which can generate this question. In addition, there are some fraudulent payday lenders and debt collection agencies that always try to make the most of this situation. These opportunist agencies collect the telephone numbers of defaulters and make intimidating calls, saying that they will get arrested if they don’t clear the overdue amount within a specific time.
The fact of the matter is if you are not a habitual offender, then you need not worry about going to jail or even cops coming to arrest you. Lenders may file a lawsuit against you that too in ultimate circumstances but can’t send you to jail for not paying a payday loan or cash advance.
If you failed to pay a cash advance loan, the lenders can say that you issued a bad check to them in case you sent a post-dated check. Otherwise, they will say that you have committed a bank fraud when you allowed a bank transfer or direct debit where your account did not have sufficient funds.
In order to make you accountable for writing a bad check, the prosecutor has to substantiate that you preplanned to issue a bad check to the lender and the lender receiving the check did not have any idea that there was lack of funds. Similarly, if the lender opted for the future bank transfer of funds or direct debit and acknowledged them, they were aware that there were no funds in your account. This is the logic over here.
They can’t substantiate that you did not intend to get the funds in your account afterwards. The cash loans lender can only take legal action against you if they can substantiate that you were not intending to pay them off from the very beginning and this is quite difficult.
The police won’t normally entertain requests for arresting someone only because he defaulted on a loan.
In majority of the states of the US, payday loans are strictly monitored. In 13 states, they are banned and the regulations differ from one state to another. Check out the regulations that apply for your case. When you take out a loan from a storefront in the state where you are residing, then the regulations of your state would be enforced. When you get a loan over the Internet, then the regulations of the state where the provider is headquartered or the regulations of your state will be in force.
Go through the rules and regulations regarding nonpayment of cash advance loans in various states. In states like Kentucky and Arizona, no criminal proceeding is initiated against borrowers who fail to pay their loans. On the other hand, if you have borrowed money from a lender who is not allowed to operate in your state, you may press charges that the lender was violating the norms by offering the funds in the beginning.
Talk to a lawyer
To understand your position in legal terms through the Loans in Jamaica, you should not only depend on the web. If possible, discuss your situation with a lawyer. More often than not, they will provide free advices to you regarding what you should do when you are being chased by an unscrupulous cash loans lender and they are adopting collection malpractices.
The decisive point here is that you must not let the debt collectors intimidate you. Know the statute and rest assured that you don’t have to go to jail and the cops won’t detain you. Nonetheless, this does not imply that you should not try to pay off the outstanding amount to the lenders duly. They can very well file a lawsuit against you and ask for salary garnishment or impose a lien on your estate. Obviously, this will add to your woes. If possible, talk to them in person and find out an amicable solution.