When a borrower misses a payday loan payment, the lender can charge a fee for the missed payment and make an attempt to collect the debt. The lender may cash the check it has on file, which could trigger the check to bounce at the debtor's bank, states Washington Law Help. Payday lenders may decide to send a defaulted account to a collections agency.
Defaulting on a payday loan can cause a lot of financial difficulties for the debtor, as lenders act quickly to collect the money, according to Washington Law Help. Fees and costs of trying to recover the funds can pile up. Borrowers in this situation sometimes are forced to close a bank account because of excessive fees that cannot be paid. Debtors also can expect to receive phone calls and letters from a collection agency regarding the unpaid loan. According to Credit.com, a settlement amount can sometimes be negotiated to resolve the debt.
Declaring bankruptcy is a drastic step, but it can free the debtor from the defaulted payday loan, states Credit.com. It is a myth that payday loans cannot be included in a bankruptcy, add Credit.com. This type of unsecured loan can be discharged the same as regular loans.Learn More
To obtain a loan, investigate what type of loan is required, where to get it and apply for it. A potential borrower needs to research any requirements necessary to obtain the loan from the lender, such as a specific credit score required for approval. Before signing loan documents, the borrower should ensure he understands the stipulations contained in the documents.Full Answer >
National mortgage settlement checks are reimbursements to mortgage borrowers as a result of historic joint state-federal settlement with mortgage lenders. In 2012, the lenders issuing reimbursement to borrowers included GMAC, JP Morgan Chase, Wells Fargo, Citi and Bank of America.Full Answer >
An excellent score is the level at which a borrower gets optimal loan terms and rates. The minimum credit score considered excellent fluctuates over time, but the Home Buying Institute has reported that a FICO score of 740 out of 850 was "excellent" as of 2013.Full Answer >
Quasi cash is a kind of product or item that is representative of actual cash such as money orders, traveler's checks, foreign currency, lottery tickets or casino gaming chips. Quasi cash is a stored value.Full Answer >