Payday Loan Jail Time?

By Shawn Lee Martin

payday loan jail timeOne thing that just drives us crazy is when people come to us and complain that payday loan companies are  threatening them with payday loan jail when they get behind on their payments.


Payday loan jail?

Does this even exist and if so how can this be legal?

Well, technically it does not exist in the USA as we have banned debtors prisons years ago but, and there seems to always be a but, there still are many possibilities of landing in jail for your debts and payday loans can be added to that possibility.

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Can I Go To Jail?

Well, yes you can go to jail for having defaulted payday loan debt but it is not for that debt to the payday loan company that would get you sitting behind bars.

When you take out a payday loan they companies have you post date a check for the payment amount on your next payday and this is all fine and good as long as nothing goes wrong.

Unfortunately in this world very seldom does everything go as planned and when things go bad they can get ugly very quickly when it involves payday loans and banks!

If your check does not clear the bank it now becomes a worthless check and in all 50 states issuing a worthless check is a crime punishable by jail and or probation.

As you can see the possibility to end up in jail is very real!

Now I know you are thinking if you call the loan company and let them know your check will not clear and ask them to not deposit it until you have the funds in the bank to cover it you should be good, right?


They will hold that check over your head and threaten to deposit it, then turn it into the authorities for possible charges against you if you do not pay up immediately!

These companies and ruthless and just simply do not care about your well being. All they care about is collecting money!

Debtors Jail?

While debtors jail does not exist for all practical applications, people do end up in jail over their debts today, thus, one could say debtors jail is still in existence, just under different names.

People can go to jail for tax debts and child support and worthless checks are on that list of reasons one can be jailed.

Although the main reason people end up in jail under these conditions is by conducting an illegal action like issuing worthless checks or disobeying a court order to pay in instances for example of probation and child support, they all have the same theme, people owing money.

Texas is now prosecuting people for the payday loan companies and other states may follow this practice.

This is just one more way these companies can harass you and keep you trapped in payday loan debt and they know it. and they use this against you, along with many other questionable collection practices.

They use this against you, along with many other questionable collection practices.


We here at Help payday Loan Debt understand what these companies are up to in their collection practices and we know any good consolidation company can and will protect you!

They can help you stay jail free and get payday loan debt free all at the same time!

Check out how we can help point you in the right direction by clicking the link below and you can start the process that will put an end to the threat of payday loan jail time!

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We Can Stop All Legal Action In Their Tracks!

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6 thoughts on “Payday Loan Jail Time?”

  1. Hiya, Shawn – this made me chuckle because of what happened with a Pay-Day-Loan company that was No.1 in the UK.

    They offered cheap loans to people who could never afford the repayments – 100,000+

    The government told the company to bugger off and wrote off all the debts.

    It was hilarious. One of the few times the UK government has done anything useful, ever, in the history of the UK.

  2. Wow! I could have used this site in College when I was getting money from PayDay loan places. This is a vicious cycle that never ends. I had no idea that now they are saying people can go to jail. They take people’s money and then they scare the heck out of them. This is a great site and very informative.

    1. Hi, Misty!

      Wish we could have helped you back then. 🙂

      If you ever find yourself or someone you8 know in a bad place with payday loan debt please come back and let us help you!


  3. Hi Shawn, thanks for the great info. Payday loan seems to be a really scary thing if you can’t keep up with your repayment. So what are the possibilities to avoid a jail sentence, or to have a criminal record? I guess ultimately you have to pay up to the original loan lender?

    And should this be all done before your missing payment is reported to the authority? Once you’re prosecuted by the state, it will even be messier to resolve I guess?

    1. Hi, Ray!

      Great questions!

      What the payday lenders do is use the threat of turning you in for writing a worthless check if you do not pay up immediately.

      What we do is negotiate with them for you and take the pressure off of you.

      If and when this would ever reach a court it would be completely out of the payday lenders hands and they really do not want that so they will work with us to negotiate a Payday loan repayment plan

      Hope that helps answer your questions 🙂


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