Legal Question in Credit and Debt Law in Texas

Payday Loan debt

Single mother of three took out a Payday loan to cover daycare. I am trapped now paying rollover interest on five loans made to pay interest. What happens to me if I cannot pay the loans...I am in Texas. Can I go to jail? I cannot get a bank loan as my credit is not good and they will not set up payment plan.


Asked on 2/20/07, 1:27 pm

2 Answers from Attorneys
Lewis Palomino Law Office of Lewis Palomino

Re: Payday Loan debt

You cannot be charged with a crime and jailed for not paying your debts. The loan company is likely to hound you relentlessly and possibly sue you.

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Answered on 2/20/07, 3:01 pm
TC Langford Langford Law Office

Re: Payday Loan debt

I agree completely with Mr. Palomino. I have also heard horror stories about how payday loan companies try to collect. Instead of paying the next installment, I would suggest paying $25 at Radio Shack, or $5 on craigslist, and get a telephone recorder. They may violate fair credit regulations, and resolve alot of your problems.

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Answered on 2/20/07, 10:07 pm


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