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In 2011, The Wall Street Journal found that more than a third of states allow borrowers to be jailed, even though federal law mandates that loan repayment be treated as a civil issue rather than a criminal one.
Theres a lot more to learn about the practice itself, how widely its used, and its effect on consumers, Mary Spector, a law professor at Southern Methodist University who specializes in debt collection issues, told HuffPost.
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Safe Internet Use Some valuable tips on using the internet safely. The most common repayment method is via your bank debit card, where you agree to let the lender take the money from your bank account, known as a continuous payment authority best personal loan in india. If there are not sufficient funds in your account to repay the loan on the agreed date, the lender may keep asking your bank for all or part of the money, and will also add charges for late payment.
Payday loan fraud is also becoming increasingly commonplace, aided in some cases by seemingly inadequate security checks by certain lenders. Unless you can prove that it is not you who has taken out the loan, you may be vigorously pursued for the debt plus interest and possibly other charges. The Risks.