Do you have to pay back payday loan

do you have to pay back payday loan

According to the Consumer Financial Protection Bureau, payday loans are short-term, high-cost loans for small amounts. Payday loans certainly aren’t the bargains of the personal finance world, but many people look at these loans as an easy fix for short-term cash flow issues. Prepare to be sued in civil court. If you default on a payday loan, the lender has the option of suing you to collect the overdue amount. Once the lender has a court judgement against you for the amount due on the loan, he or she may seize your property (with the help of a law enforcement officer) and sell it to pay the balance of the loan.