It is never a good idea to not pay back a payday advance or any other loan that you enter into an agreement to pay. If you choose not to pay back a payday advance, there are things that lenders can do to eventually get their money back. In the long run, it will not benefit you not to pay back your payday advance.
Legal Action
You could face legal action for not paying your payday advance. By signing your payday advance agreement to pay back the funds and fees when they are do, you are legally binding yourself to the contract. Therefore, if you break the contract, your payday advance lender can take you to court to get the money from you. If you have to go to court, then you could be responsible for paying lawyer and court fees in addition to your payday advance.
Overdraft Charges
If you don't pay back your payday advance, then the lender might continue to debit your checking account until they receive their money. They do this by using the checking account information and debit authorization you provided when you initially applied for the payday loan. If this occurs and you don't have the money in your account, then you will incur overdraft charges from your bank.
Phone Calls
Your payday advance company can continue to call you, your family members and other listed references if you don't pay your advance. The phone calls could eventually get annoying and disruptive for you and your references.
Credit Reporting
Your payday advance lender can report you to the credit bureau and TeleCheck for not paying your advance. If this happens, then your credit score will be negatively affected because you will now have a bad debt listed on your report. Also, if you have a bad TeleCheck report, you will typically not be able to open up a checking account with a banking institution or make a check payment with businesses that use TeleCheck.
Tips
If you believe that you may not be able to pay back a payday advance, then consider finding an alternative way to obtain the money that you need. You can borrow the money from family or friends. This way you don't have to pay fees and you can take longer to pay back the money that you borrow.
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