Legal Question in Credit and Debt Law in Arkansas

online short term loans

I recently submitted a question concerning online short term loans. I was informed that the company can garnish checks due to the loan not being paid off. The total amount of the loan was $300 plus $90 interest. This was a loan that was done online and the money was deposited into his checking account. Would they still file judgement even if the loan is total at $300? With the submiting of the online appplication he didn't receive a contract he was just informed by email that he was approved and the money would be deposited in his checking account. Is it something he can do because he is currently unemployed and has no way of paying that back right now? Also what is the time limit on processing garnishment of checks? Will he only be responsible for what is owed or will others fees be added? Thanks your help is greatly needed!


Asked on 5/03/07, 1:12 pm

1 Answer from Attorneys
Brandon Moffitt Moffitt & Phillips, PLLC

Re: online short term loans

No one can say whether they company will sue over the $390, other than the company.

If he got money from someone, rest assured that there was a contract. If he gets sued on the breach of contract, he could have to pay the money owed, court costs, and attorneys fees.

Being unemployed has nothing to do getting a judgment. If they prove the breach, they will get a judgment and hold it until he starts working again to collect.

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Answered on 5/04/07, 3:46 pm


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