If you are looking for payday loans in Canada, it probably because you need quick cash to pay off your pending bills. These short term payday loans are a fast and easy solution for any type of unexpected monetary problem. Whatever your reason, the need of immediate money will force you to the online payday loans lenders. If you are not able to pay back it, don’t worry! You will not be gone to jail.
What happen if you are not able to pay back your loan?
Your lender will try to collect the debt by withdrawing from your bank account, using the information that you provided to them. Make sure that you have enough money into your bank account; otherwise, it can create trouble for you. This can not only distress your lender but also your bank may charge you extra fees.
At the last, lenders and collection agencies will use your all information like your phone number, address, email, etc. to contact you for payments. Don’t play hide and seek from your lender, and contact them as soon as possible to find out a middle way.
What can I do if I default on my payday loans?
As we discussed above, contact your lender and explain your problem. Try to negotiate with your current repayment plan to avoid collection and court. During your repayment plan, create a money saving budget and try to cut spending and do more money saving. Nowadays, lots of personal loans for bad credit are available, so you have still a chance to get small loans even on your default. A small loan can terminate the amount of interest and can save hundreds of dollars.
Can I negotiate my payday loans debt?
Yes, you can negotiate your payday debt. It is good to step because most of the lender wants something if there didn’t get the full amount back. Freely discuss with your lender and they will definitely willing to settle your loan in less. Always keep a copy of your settlement agreement contract, as it is helpful when your lender sue in court for the full amount.
Can a lender send me to collections agencies?
Yes, when a lender cannot able to get money directly from borrower, they can contact third-party collection agencies for recovery. Sometimes they can send borrowers to collection agencies within 30 days of a missed payment.
What can I do when collection agencies harass me?
Every province of Canada has its own rules and regulations related to payday loans online. If you are harassed by a collection agency, your first step is to inform about your right and obligations under the law. Including what these collection agencies can do and what not when trying to collect the debt.
Keep in mind that when dealing with collection agencies, they try to scare you for paying your debts. Instead of it, stand firm and deal with these aggressive collectors with full confidence.
Can You Go To Jail For Not Pay Back Payday Loans?
No, according to Canadian federal law, nobody can be arrested for their unpaid debts. But some aggressive debt collector threatens people that they will go to jail if they didn’t pay back their debts. This is an illegal activity and if your lender attempts this; don’t scare of it. You can report against your lender for doing such illegal practice.
However, if you are sued or a court judgement has been entered against you and you ignore the order from court to appear, a judge may issue an arrest warrant against you. Never ignore the order from court. If it is required to appear in court, you should go and provide all the information that the judge wants.
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