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A same day payday loan are a quick, simple way of getting money if you want it to meet an emergency, but you should understand the penalties you risk if you deliberately try to get out of repaying the loan.

Before giving you approval, same day payday loan companies will ask you to fill in a simple form, giving your age, address, employment and bank history. They will check on your credit worthiness and that you earn a minimum of $600 a month in a job where you have been employed for more than six months and that your salary is paid directly into your bank account.

A same day payday loan is a short term cash advance with your next pay check as collateral. You should carefully work out your budget to take into account repaying the loan, but if you think there might be a problem, you should contact the lender and arrange a rollover. Most lending companies will allow up to 5 rollovers, which will give you the time to repay the total amount of the loan plus interest and rollover fees.

Refusing to repay a loan constitutes a fraud and under the 2006 UK Fraud Act, loan companies can take a defaulter to court. The court usually orders the loan to be repaid and you will find yourself paying court charges too. The court will put the debt into the hands of debt collectors, who have the right to seize your possessions.

Being taken to court and having a judgement against you will damage your credit history, and you will find it impossible to apply for same day payday loans in the future. You will also find yourself with a criminal record. If this is your second or third offence, you can even find yourself facing a prison sentence.

Most loan companies will only threaten court action as a last option, as they would prefer you to repay the loan without going to such extremes. The best way of protecting themselves is to make sure repayments are done by direct debit from your account on the same day as you receive your pay.

If you remember to calculate your budget carefully when you are thinking of taking out a same day payday loan and make sure that the lending institution allows rollovers in case of unforeseen difficulties, there is no reason for not repaying the loan and avoiding the unpleasantness of court action, prison and bailiffs knocking on your door. best site




 


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