There are two parts to this question that most people would want to have an answer for.  Many people get online payday loans everyday, and it’s now a fact of life.  Although they are not always the first choice in emergency financial situation, they are a good reliable option for those that need cash in a hurry.  However, there are times when for what ever reason, a person is not able to meet the obligations of the loan.  This can be from a job loss, cut back in hours, reduce income, or a slew of other reasons, but what happens if you don’t pay a payday loan back?

One, your interest will continue to occur as contracted in the loan agreement, and that amount can be very high, and in some cases several hundred percent. This means that if you don’t pay, you will be liable in civil court for the damages, and those could be very high. Some states even impose double damages so the legal stand point is very risky and most likely the lender will win, especially if the contract is legal and valid in the state it was issued.  This means that even though you don’t have money to pay back the loan, the loan is still valid and needs to be paid back.

The second part of this is whether or not a person can be arrested. Some lenders threaten to call the police on people that don’t repay their loans, but in most states this practice is also illegal.  If a lender does threaten to have a person arrested for not paying a loan, then that person should immediately contact their state’s attorney for clarification.   However, each state is different so make sure to check your local state laws on payday loans.

In addition, there are lots of good resources on the web for finding out what a particular state’s law is, as well as consumer websites that help provider more insights, user ratings, and reviews of loan lenders.  Using sites that rate the services of the direct payday loan lenders, a person is sure to get a loan that is right for them.