Pay Day Loan

[joannb07]

Can a pay day loan company threaten to arrest someone and seize a computer for being delinquent in repaying the loan?

[vwine]

A Pay Day loan company will use all the threats they can think of because they DO NOT HAVE ANY LEGAL RECOURSE for collecting a debt that wasn't paid. Why you ask? Because post dated checks are illegal. It is illegal to illicit a post dated check. Why would they even mention repo'ing a computer? You didn't buy a computer from them, you only borrowed money.

[Fidelity One]

This is an interesting question. Pay Day Loans are not illegal. Some of the various companies may use questionable tactics in getting people to repay but the industry in general has policies and procedures which they follow when an individual defaults on their obligations.

If you are dealing with a company which has multiple offices, call them and discuss a repayment plan which works for both you and them.

Remember, they have to make money and the interest you are paying to them is higher than a conventional loan, but they did give you the loan when you needed it so the discussion with them should be about finding a solution.

If you are dealing with a single store Pay Day Loan provider, the chances are they will use ethical and unethical methods to collect their money. In this case be careful.