The Consumer Financial Protection Bureau reports that no one can be arrested for defaulting on a payday loan. In order to be arrested for non-payment, the creditor must go to court and obtain a judgement against the debtor. If the debtor refuses to appear, an arrest warrant can be issued.Know More
"Time" notes that some payday loan companies and collection agencies are attempting to have debtors arrested. Creditors can have a debtor arrested by pursuing legal action against the debtor and requesting several court appearances to determine the amount of debt and examine the debtor's finances for repayment. If a debtor fails to appear at a court summons, the judge can issue a warrant for the debtor's arrest. The creditor can also ask for a "body attachment" that forces the debtor to be put in jail until the next hearing or the debtor pays bail that is often equal to the debt incurred plus any additional fees granted by the judgment.Learn more about Is This Illegal?
CitiFinancial Auto offered loans through car dealerships to consumers purchasing automobiles, as Bloomberg Business reports. Loans made to consumers by this company were sold by CitiFinancial to Santander Consumer USA in 2010.Full Answer >
Federal law covers most cases of buyer's remorse in all 50 states, including solicited sales, timeshares and homeowner loans, while some states have laws to protect rueful consumers with certain contracts, such as gym memberships, and can extend the federal cooling-off period, according to the AARP. Buyer's remorse laws do not apply to automobile purchases.Full Answer >
According to History.com, when the U.S. stock market crashed in October 1929, many American banks began closing because consumers pulled all of their money out of the banks, including investments and cash accounts, and began to default on loans. Because the banks had to liquidate loans and sell assets to pay consumers withdrawing their funds, the banks began to fail due to lack of funds.Full Answer >
In order to get a low-interest personal loan, applicants should research financial institutions that offer low-interest personal loans, compare loan offers and increase their credit rating as much as possible before applying. If the applicant is willing to put up his house, car or another type of collateral, he might be able to get a lower interest rate on a loan.Full Answer >