Can you go to jail for not paying back a payday loan?

Will You Go to Jail If You Do Not Pay Your Payday Loan?

Did you default your payday loan and fear that there might be legal consequences including a possibility of going to jail? Or is it your lender threatening you over the phone that you would be going behind the bars unless you get debt-free? No matter whatever the reason is, it is very important to get this question answered and be sure what consequences you are likely to face if you do not pay your payday loan on time. To get it straight, you cannot be sent to jail for defaulting a payday loan, or even a mortgage- although you can be sued in court. Therefore, you must not get scared by the idea or threats of your lender for that matter. Before you speculate what might happen if you do not make payments towards the loan pay off, you should be in constant communication with your lender. They might have ways to make it easier for you to pay back.

Even after having the best term and clauses, or maybe because of unfavorable rates and term, if you default the loan, you cannot go to jail.

Reasons Defaulting a Payday Loan Cannot Send You to Jail

First of all, you need to understand and remember that in the US people go to jail only for convicted criminal offenses. Therefore, nonpayment of a debt must qualify as a criminal offense in order to invite such a punishment. In reality, the constitution of the US makes it clear that any person cannot be punished with imprisonment because of failure in debt payment. It is not a criminal offense. However, the lender can go to the court and sue the borrower. There is also a possibility that the court might order for the borrower’s wage garnishment to help the lender recover the money. So, be assured that not paying off a payday loan would not take you to jail. On the other hand, if your lender threatens, you can complain about it with the authorities.