It shouldn't be a surprise for you to hear that short-term payday loans are intended for emergency situations, and nothing else. The majority of the time, you can wait for your paycheck to come in. Yes, you can go without a purchased coffee for the rest of the week, until you get paid on Friday. I know. It seems difficult but you can make do with your lack of funds until payday rolls around. However, it can be so easy to get a payday loan because no credit check is required, that people often opt for them as a way to quickly get money, prior to getting paid.
Does the latter sound like a vicious cycle? It does? That's because it certainly can be, and people can find themselves well in over their head with a variety of small short term loans. For those people, this one is for you. Make sure that you know your loan regulations, specific to each company, to see how they will collect their money and to understand what your responsibilities are to pay the loan back.
I'm going to start off with the payday loan company's rights because if it wasn't for them providing you with the immediate funds, you wouldn't have any reason to look up the rights and regulations of currently having one, or of the process to pay one back. As mentioned, each company will have their own specific regulations and terms, so do inquire with all of them in which you have a short term loan from. However, all companies do have the right to pursue repayment.
This ensures that they get their money back, and they have the right to seek help from collection agencies and lawsuits through small claims court. Doesn't sound fun, does it?Always may sure that you can pay your payday loan back, prior to applying for it.
Now, as the receiver of the money, your rights didn't go right out the window. The payday loan company may not harass you, or your friends, family, or your workplaces. They can make calls for repayment, but they can not harass you in any way, shape or form.
The majority of payday loan companies do require that you sign a post-dated check as collateral or have direct deposit of your paycheck into your bank account. What does this mean for you? Well, you signed a check to them that can be cashed on the required date of repayment, if you fail to make the payment yourself. If you are asked to have direct deposit, that means they will take out your payment automatically when your paycheck goes in the bank.
On the contrary, some companies may tell you that you are committing check fraud if your bank account bounces back as insufficient funds. This is not true. However, if problems persist with your failure to make payment and no sufficient funds, they may speak to the courts to take further action, such as putting liens on your home.
So, how can you ensure that you won't ever have to go through such drama? Well, only use a payday loan service when you absolutely need to, or as previously stated, in cases of emergencies, and nothing else.
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