Many Americans today are taking out payday loans for emergency cash. Unfortunately, due to the high outrages interest rates these lenders charge, it may become harder
and harder to get yourself out of the cash advance trap or loop. This is because most payday lenders charge you 15% in interest a week and after you pay them back on payday with most of your
paycheck, it leaves you with little choice but to take another one out the next day. I call this the payday advance trap. If you repeat this on a weekly basis, your giving up over 60% of one
weeks paycheck to them a month. These companies knowingly encourage these loans. They also make it a point to say "You can get another loan tomorrow". Some of us, even get trapped into more
than one payday loan with multiple lenders.
What I have figured out with research is that if you decide not to pay them on time and stop payment on that check. You could save the interest money you are paying them every week, and you will be able to pay them back within a few months. These lenders think they can scare you with into paying it back because you wrote a check, but that is just not true. The law forbids payday loan lenders from initiating or threatening a criminal prosecution against you or from collecting the treble damages that might otherwise be payable pursuant to the Civil Code for a dishonored check. They do reserve the right to collect delinquent loans using all legal remedies available including legal debt collection and civil court action. This is usually the only legal action they can take against you, it will take them months to take you to civil court, and another month or two to garnish your wages, if ever. Disclaimer: This information is the opinion of the author and you should always check with your local and state laws and/or consult a attorney before taking any action.
Don't feel bad about these payday lenders not getting their money back. They did not care about you when they raked you with high loan shark interest rates. Remember to always check your current local and state laws on dishonoring personal checks with payday loan lenders before taking any action. For more information on payday loans and not paying them back, please visit the ftc.gov website.