Can you get arrested for defaulting on a payday loan?
No you can’t be arrested for defaulting on payday loans or check advance loan. The loan company knew that you did not have cash in the bank when you wrote the check so bad check laws do not apply. If they threaten triple damages for a bounced check they can not get it they know the check was not good when they accepted it.
In fact it is against the law for them to threaten you with arrest
According to the Fair Debt Collections Practices Act (FDCPA), it is ILLEGAL for a payday loan company or any business to threaten a person with the possibility of being arrested for non payment of any debt. If they threaten you with arrest there is a good chance that they just let you out of the loan payment be sure to report them.
Tags: Payday Loans