Ask a Lawyer - Archive

Can you go to jail if you do not pay your payday loan.

Every now and again I receive a similar question, so it's worthy of repeating. NO, you cannot go to jail just for failing to pay a loan. If you used fraudulent means to obtain the loan or fraudulent means to pay (or attempt to pay) the loan, you could be committing a crime which could land you in jail, BUT simply failing to pay your debts when due is not a crime. I hate that collectors will pull this. Even if you gave to the payday lender a post-dated check, that's not going to land you in the big house. It is a crime to pass a check which you know isn't good, but it doesn't seem like that's what's happened here. Just do what you can to pay the loan. If you can't pay, then the lender can decide if it wants to sue you (probably not). You might want to push back that they are violating the law by telling you that you can go to jail, and that you're considering an action against THEM. That might get them to back off and work with you.