Can I be arrested for defaulting on a “payday “loan?
No, but the longer you go without paying, the more fees you’ll have to pay if you later decide to pay off the debt. At worst, they’ll take you to court and you’ll have a judgment against you and you may have your wages garnished. Usually payday loans work by postdating checks. If you default, odds are that you’d be overdrawn at the bank. In that case, you’ll probably be reported to ChexSystems and have problems getting another bank account. For future reference, at least pawn shops are regulated and don’t put your collateral up unless you don’t pay within a few months.
