Lately, we’ve found that many first time payday loan users, and even experienced users, have a great deal of specific questions about how the payday loan industry works. They’ve heard rumors or second hand stories from other people about it, some of which may be true and some of which aren’t. We always try to give users the most objective answer and advice about the subject. Recently we were asked if it is possible for a payday loan lender to sue someone over an unpaid payday loan. It’s a difficult question to answer since so many states have different laws concerning payday loans and every single lender has different policies, but generally speaking, you can be sued for an unpaid payday loan. Of course, the lender would most likely prefer to avoid such a situation, as it will cost them time and resources. Most lenders will try to get you to pay back the money on their own and then eventually send you to a collections agency if they’re unsuccessful. Suing you is usually their last resort, but it can be done and payday loan companies have won their cases before.
What Should I Do If I Am Sued?
If you have unpaid payday loans and have been sued or will soon be sued by the lender, here’s some help in advice in what to do next. This is a serious matter and you should do everything you can to prepare yourself.
- Unless you are familiar with the law and small claims courts, you should probably seek legal advice as soon as you can.
- Keep in mind that most small claims courts don’t use lawyers, so you’ll be representing yourself, of course you can get legal advice to help you prepare.
- Many states have different laws regarding payday loans so be sure to look up the laws regarding your state.
- Find all of the original documents pertaining to the payday loans you borrowed and proof of any payments you made to the lender.
- Show up to your court date! Sounds obvious, but if the payday loan lender doesn’t bother to show up, you’ll win the case by default and not have to pay back the money.