How can I renegotiate payments an on-line payday loan company refuses to?

UPDATED: Oct 5, 2011

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How can I renegotiate payments an on-line payday loan company refuses to?

I can no longer afford the monthly payments. If I pay this month, my utilities will be shut off. They advance company refuses to work with me. I want to close my bank account and start sending them a few hundred dollars each payday. What can they do? What will they most likely do? I want to pay it back but can’t live with the outrageous payments. I made it for about 4 months but can’t do it now.

Asked on October 5, 2011 under Bankruptcy Law, California


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Unfortunately, a creditor is under no obligation to work with you, negotiate with you, or accept less than full payment. If they won't work something out, you can't make them.

If you stop paying, they can sue you. Assuming they win--which they will, if it is valid debt and you have defaulted on it--then your credit rating will be damaged, since there will be a default reported against you. If you don't or can't pay the judgment, they will potentially be able to take one or more of the following actions: garnish (or take part of) your wages; garnish your bank account; put a lien on any real estate you own; execute on other property (like vehicles you own), which means to force the sale of the property to pay them.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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