I live in Pennsylvania what happens if I default on a payday loan

What happens if I default on a payday
loan in the state of Pennsylvania

Asked on December 16, 2017 under Business Law, Pennsylvania

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

1) You can be sued by the lender for the full amount on the loan, at a bare minimum. Depending on the terms of the loan (look at whatever paperwork or agreement you signed), they may be able to sue you also for further interest, for late payment fees, and/or for attorney's fees.
2) If they sue you and win--and if you don't pay a loan you took out, they will win--and you still don't pay, they could garnish your wages, take money out of a bank account, seize non-real estate property (like a car), or put a lien on real estate. All those things take court orders, but there's no reason to think they could not get them, if they win in court and you still do not pay.
3) You will have the default on your credit report/history.


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