Can Cash Advance Lead to Court Action?

When payday lenders take legal action against you, they are betting on the fact that you won't respond to the court summons. As a result, the court will immediately issue a judgment against you. Most loans of this type involve small amounts that have accrued fees and high levels of interest. Debt collectors usually win because debtors don't show up in court for the garnishment hearing.

No, you cannot be arrested for not paying a payday loan. However, if you are sued or if a court ruling was handed down against you and you ignore a court order to appear, a judge can issue an arrest warrant against you. People often don't want to rely on family members or pawn their possessions in case of an emergency for cash, but a quick loan could lead to this if you can't pay it back. Fast loans are designed to help borrowers manage financial difficulties during a cash shortage until their next payday.

Xcash Money Solutions provides Ontarians with various loan options, including payday loans, personal loans and auto title loans.

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