Can I be Arrested for Default on Payday Loans?

If you are like many people, you may not have a clear understanding about payday loans; also known as cash advances or cash advance loans. You may have questions such as:

1. How does a payday loan work?
2. What will a payday loan cost me?
3. Can I be arrested for default on payday loans?

At Yellow Leaf Financial, our goal is your success. When you apply for a payday loan, we want you to feel confident that you will be able to repay your loan.

1. How does a payday loan work?
While it varies from lender to lender the process is generally the same. Once your application for a payday loan has been approved, a deposit will be made directly into your bank account within 24-48 hours. The terms you agreed to when you accepted the loan will outline the date and amount due to repay the loan plus fees. As a general rule, payment is due when you receive your next paycheck.

2. What will a payday loan cost me?
The amount you will pay for a payday loan or cash advance varies from lender to lender and in some cases, from state to state. Before you accept a payday loan or cash advance, make sure your lender has clearly stated the amount of your loan and repayment schedule. At Yellow Leaf Financial, the terms of your loan are clearly stated when you receive an offer.

3. Can I be arrested for default on payday loans?
Like all loans, a payday loan is a legal and binding contract between you and your lender. Your payday loan lender will likely pursue all avenues available to them should you choose to default. Since contract law is governed by each state, it is difficult to say whether you can be arrested for default on a payday loan, it is best not to “chance it” and repay your loan on time.