While payday loans are meant to be a quick fix for some unexpected finances or problems that arises, it’s not uncommon for them to go unpaid for extended periods of time. Some people take the loan out with no intention of paying it back in a timely fashion, which only creates more problems for everyone. Even worse, some customers have taken out payday loans in one state and then moved to another. This potentially creates a very messy situation, as each state makes their laws regarding payday loans. In this situation, whether or not legal action can be taken against you will likely depend on the cooperation between the states. Your payday loan lender will probably use a collections agency once they’ve found out that you are no longer within the state, who will then try to track you down. Once the collections agency has found you, they will most likely call you or send you mail asking you to pay back your debt. If they are unsuccessful in getting you to pay, it’s possible that they could try to get a judgment taken out against you. Again, this will depend on cooperation between the two states, but it is possible for them to legally force you to pay. No matter what happens that debt is still in your name and you are still responsible for paying it, even if you’re in a different state.
What Should I Do In This Situation?
In the complicated situation that you owe a payday loan lender money in a different state, you should always do everything you can to get it paid off as soon as possible. Although it may take a little longer than usual for a collections agency to get a hold of you, you will still be expected to pay the debt back. If you’re in such a situation, use the extra time wisely to save the money you need to pay back your loan. The extra couple weeks should be more than sufficient for you to get whatever you owe the company. As stated above, failure to pay back the loan could lead to legal ramifications, even if you’re in a different state. At the very least, the payday loan company can contact credit bureaus and other payday day loan services to inform that you are a non-paying customer. Should you be unable to pay back the loan as expected, contact your payday loan lender and let them know of your situation, they may allow you to pay back the loan in installments. Remember, payday loans are meant to be a short term fix to your financial needs, not like a conventional loan that’s paid back years later.