Payday Loan Jail: Can they arrest me?

By Shawn Lee Martin

payday loan jailWe get asked the following question way too many times in a week: Payday loan jail: can they arrest me?

Seems payday loan collectors will stoop to any level they need to in order to scare the borrower enough to get them to do what they want.

The answer to this question is well…. yes people can end up in jail over owing money.

Lets take a look at what a debtors Prison is.

There are no payday loan jails per say, unless you call being caught in the payday loan trap jail and many people do.

Yes they can take you to court and sue you, but most do not. They would rather have you in the trap so they can keep making money off of you.

Caught in a payday loan trap?

Click here to see how we can help you!

What they Really do

What these payday loan companies really do is hope a customer takes a loan out and runs into trouble paying it back thus they can offer the borrower the option of rolling over the loan.

This usually leads to Gotcha!

This starts the whole interest and fee process over from the roll over date and deducts nothing from the original loan.

A simple $250.00 two week loan can soon blossom into several thousand dollars in interest and fees in a matter of a month and they now have the borrower trapped.

Now they can start hounding the customer to pay on the loan, but they can usually not come up with enough to pay it all off, thus the outrageous interest and fees just keep adding up by the day.

They have talked people into selling all their property, using pawn shops and borrowing from relatives and friends.

They call the borrowers at work and at home and they also call all of the references the borrowers wrote down when taking out the loan up to and including calling their bosses.

They will threaten court action and jail time if the borrowers do not pay immediately.

In other words they will resort to almost anything to collect, but they do not want to collect it all, by the borrower leaving any balance at all keeps the interest adding up and them making money and lots of it.

Even though many of the tactics these loan companies use are in fact illegal that fact rarely slows the collectors down.

What the borrowers can do

Most borrowers are so scared and out of sorts by these collectors actions they feel trapped and backed against the wall.

People have paid and paid for months until they simply ran out of all resources and all they would have really had to do was contact a payday loan consolidation company.

A good company would immediately turn the tides on the payday loan company and put the power right back into the borrowers’ hands.

Once these payday loan companies know the customer is on to them and have hired a solution to the problem, they negotiate down the debt and agree to easy payback terms with the consolidation company.

They will stop the calls and the interest and get this out of their way as they know they can no longer work the payday loan trap on this borrower anymore so they concentrate on getting rid of them and moving on to the next victim.


If one finds themselves in trouble with out of control payday loan debt the first and only option the person should even consider is finding a good highly rated and trustworthy payday loan consolidation company.

This will take the control out of the lenders’ hands and put it where it belongs, back with the borrowers.

Before these companies can ruin the borrowers’ banking account, destroy their friendships and get them fired from their jobs, let the consolidation company do all the work and get this taken car of in as little as a day!

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Caught in a payday loan trap?

Click here to see how we can help you!

22 thoughts on “Payday Loan Jail: Can they arrest me?”

  1. Hmmm… It is a sad story to heard and even scarier when you are the borrower. It is difficult to find a really genuine payday loan company as most of them just want to squeeze you until you are dry out of money. That is why my parent told me to never borrow from these type of companies. Stay healthy and debt free.

  2. Hey Shawn,

    I find it so sad what lenders will and do when people find it difficult to come up with their payments on time.

    I have said before I am will always do my best to try and debt free. I am not sure i agree to live below our means but setting aside money for that amount of time as spare cash is a smart idea.

    Great article though I always find info to take away with me when i visit you site

    Thank you


    1. Hi, Jack!

      Man if everyone thought like you….. 🙂

      Thanks for stopping by and please help spread the word that we are here!


  3. Hey Shawn,

    Wow! It’s so sad what lenders can do when people struggle to come up with their payments.

    Personally I’m a huge advocate for living debt free.
    I really like the approach of living below our means, setting aside money for 3-6 months of expenses, having spare cash in the wallet and house, and making a solid financial plan. I do a little writing on this at my site.

    Thanks for writing this post and giving people a source for help!

    To Your Financial Goals,

    1. Hi, Alex!

      If only everyone could do this!

      Life has a way of making thing hard at times and hopefully we can help make a differnece for those looking to follow your steps!


  4. great post once again. and great answer to this very question as to whether one can be jailed for being in debt.

    It is refreshing to know once again that debt consolidation companies can help make this situation preventable.

    it is interesting to note that most customers of these payday loan companies are not told of the consequences of defaulting but are lured into taking up these loans. Which isn’t the best

    1. Hi, Fidel!

      You are spot on, they do not let customers know about any of the traps they can get caught in. Actually, they hope it happens as they can make even more money.

      We will keep letting people know that they have options!

      Thanks for stopping by!


  5. Hey Shawn, interesting to hear that collectors are virtually getting away with threatening debtors with jail in a bid to get them to pay up (or not)!

    It’s sad that so many people don’t know the truth from the scaremongering and that they cannot be jailed simply for owing the money but only, and ONLY after it goes to court and if they became in contempt of the court’s judgement.

    Not only could the payday loan industry do with being sorted out and properly regulated so could the collection industry that thrives on the back of it because sometimes they are even worse.

    Great information Shawn, good to know there are still some good guys out there willing to help these poor people out of their nightmare.

    1. Hi, Mark!

      Yes, we are the good guys, lol.

      The main prblem is that most of these collectors think they are abopve the law and you would be amazed how many people will call relative and borrow money to give them to keep the cops away.

      Just sad, and that is why we are here, to help those who need it.

      Thanks for stopping by!


  6. Most inner cities have pawn shops, dollar stores, title pay places where you borrow a few hundred dollars and give them your title, used car dealerships where you pay $100 dollars down for a $500.00 dollar beat up car and then when you miss a a payment they repossess it! I read somewhere these people make hundreds of thousands of dollars per year reselling the same cars.
    People prey on the poor, uneducated people who only know how to survive for the present day. Thanks for bringing these scams forward…. Our states should do more to stop this behavior.

    1. Hi, Marc!

      Thanks so much for stopping by!

      Yes, the states are trying but too little too late for some.. Many are making payday loans illegal, but the online companies are based out of the USA or are owned by Indian tribes and just ignore the laws..

      Lawmakers are also combating lobbyists who spend tons of money buying our politicians.

      Please help spread the word that we are here and will help anyone who needs it.


  7. It is just awful what some people will do for money. Is it just me or do you also see this happening to older people more so than younger people?

    1. Hi, Maureen!

      We see all walks of life and all age groups. It is so easy to get sucked up into these loans and then not be able to get back out.
      The companies prey on the elderly and the young alike.
      That is why we are here, to inform and to help.
      Thanks for stopping by!


    1. Hi, Hayley!

      That is why we are here, to inform people and warn them of the pitfalls of payday loans and help them if they are already in trouble.
      Thanks for stopping by!


  8. Just watching the video got me steamed.

    Now I wish I was a lawyer so I could go after these low lifes.

    Enjoyed the writings Shawn. Always a good read.


    1. Hi, Larry!

      Yes, I agree, it does tend to get the blood boiling!
      That is why we are here to help anyone who is in need of it concerning payday loan debt!


  9. I have heard of debt collectors calling people’s wives and asking how they could marry such lowlife’s, calling and harassing their place of employment, and yes, threatening to throw them in jail.

    Fear is a very strong human emotion and they will definitely use it against you.

    1. Hi, Travis!

      Boy, you aid a mouthful there!
      They can be below the bottom feeders in life, and we can help anyone who is in trouble and dealing with these guys and gals.
      Thanks for stopping by and please spread the word!


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