If you have a payday loan, it’s possible that you’ve been served with a lawsuit. This is actually a fairly easy and inexpensive way for lenders to collect on their debts.
However, the payday loan industry is known for its liars, so you need to be sure that you’re taking the right steps to ensure you’re protected from a costly lawsuit.
The first thing you should do is contact a lawyer. They can provide you with legal advice and help you navigate the complexities of court proceedings. You may also be able to receive financial assistance from a nonprofit credit counselor or a community assistance plan.
Taking a lender to court is a good idea, but it doesn’t always go so smoothly. Many people are nervous about going to court. They may be afraid that they’ll end up in jail. A better option is to contact a debt collection agency. These agencies are legally authorized to take borrowers to court and are usually quite skilled at getting the money back out of the borrower.
Depending on the circumstances, you could end up in jail if you do not repay your loan. Fortunately, there is a chance that the loan company will not pursue criminal charges against you, and that it will be the case that you’re just being sued for a bad check.
Although the court will not put you in jail, you’ll be left with a judgment that can negatively affect your credit for years to come. However, you can minimize the negative effects of being sued by paying off your loan early. Also, don’t beat yourself up over your failure to make a payment. While you may feel like you’re losing your freedom, you’re avoiding a potential lawsuit that could cost you thousands of dollars.
Another reason to consider going to court is that you’re facing foreclosure. In these cases, a lender may be able to garnish your wages or place a lien on your property. As with other types of creditors, they are legally allowed to do so. However, you’ll have to prove that they are violating your state’s laws.
Lastly, you should also seek the advice of a legal aid center or bankruptcy attorney. They can give you some advice on how to fight your lender’s best efforts. For example, in some states, it’s illegal to put a borrower into prison. Despite this, there have been some cases where payday loan companies have been successful in obtaining a jail sentence by suing their clients for violation of the law.
As with other types of financial litigation, it’s important to have a solid defense. The best way to do this is by having a clear understanding of what your lender is attempting to achieve. Once you have a solid case, you can work on a repayment program that will get you out of debt while maintaining your budget.
Regardless of the outcome of your case, you should always be aware of the possibility of being served with a lawsuit. Often, the lender will attempt to contact you. Whether through phone calls, letters from attorneys, or references, the chances are that you’ll be contacted.