Houston Payday Loan Lawyer
What is a Payday Loan?
Payday loans offer a quick and easy solution for those in need of cash, but the high-interest rates associated with them can be crippling for those who don't have the means to repay the loan on time. For example, a loan of $500 with a 20% interest rate can cost borrowers $100 in fees, meaning they would have to repay $600 on their next payday. If the borrower is unable to pay the full amount, the lender may offer payment extensions, but this comes with further fees and interest, making the amount to be paid back even higher.
Avoid Debt with Safer Alternatives to Payday Loans
Taking out a loan is a big decision that should be carefully considered. Payday loans might be the best solution for short-term borrowing needs, but there are also other options that can offer greater financial security. Consider smaller loans from a small loan company or credit union, low-cost credit offers, asking for more time from the loan servicer or creditors, and local consumer credit counseling, all of which can provide more favorable terms than a payday loan.
When taking out a payday loan, it’s important to not borrow more than you can afford to pay back with your next paycheck. Account for the high interest rates and make sure you have enough left to make it to your next paycheck.
If you’re considering taking out a payday loan or have questions about an existing one, contact Keeling Law, Houston payday loan settlements attorney. We have handled a range of complex cases of loan settlement and disputes and can help you determine the best course of action for taking out or paying back a loan.
What Happens if Payday Loans Go Unpaid?
Under the Texas Finance Code, debt collectors are not allowed to threaten or use coercion to make a debtor pay, such as threatening arrest for nonpayment of a consumer debt without proper court proceedings. When it comes to payday loans, they usually involve a promise to pay in the future.
Sometimes, lenders require the borrower to write a post-dated check for the loan payment. It is an offense in Texas for a person to issue a check if they do not have sufficient funds in the bank to pay the check together with other checks outstanding. That being said, if someone asserts that you have issued a bad check, you should not ignore the problem and should seek the services of a lawyer if you receive a notice or subpoena.
Discharging Payday Loans by Filing for Bankrupcy
Payday loans can generally be discharged in bankruptcy court. However, it's important to remember that if you don't have enough money in the bank to cover a check, don't write it. Additionally, never leave a check with a lender or sign a check without sufficient funds. If someone accuses you of writing a bad check, don't ignore the issue. Make sure to respond to any notices or subpoenas, and consider seeking the help of a lawyer.
Your Payday Loan Disputes Attorney
At Keeling Law Firm, we specialize in providing debt relief services, such as filing Chapter 7 and Chapter 13 bankruptcies, for our clients located in Harris County, Texas. Our Board Certified Consumer Bankruptcy Lawyer, Ken Keeling, is here to provide you with the legal advice you need.
This article is intended to address small, short-term loans. Theft by check is a serious offense of obtaining goods or services with a bad check, and the Harris County Texas District Attorney offers answers to Frequently Asked Questions – Check Fraud on their website.
If you're looking for a payday loan settlement and disputes attorney, please feel free to contact our office at 713-686-2222 to schedule an appointment. We look forward to helping you find a viable solution to your consumer debt problem.
Contact us today to learn more about how our Houston payday loan settlements attorneys can help you today and other services we have to offer such as:
- Home Foreclosure
- Vehicle Repossesion
- Wage Garnishments
- Medical Bills
- Credit Card Debt
- IRS Debt
- Loan Modifications
- Student Loans
- Property Tax
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