Can payday lenders sue you, or have you arrested?
A payday lender or collector can sue you in civil court. A collector can't threaten arrest over unpaid debt. What the FDCPA covers and what to do.
Payday loan debt help
Behind on payday loans? Start here.
Find out what your state lets lenders charge, what your loan is really costing, and the steps that get you out, in the order to try them. We're not a lender and we never send anyone to one.
Ways out, roughly in the order to try them
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Stop renewing and protect your paycheck
Revoke the lender's permission to debit your account and place a stop payment at least 3 business days before the next withdrawal.
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Ask for your state's payment plan
Where state law requires one, the lender has to let you repay in installments instead of renewing; your state's page says whether it does.
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Replace it with a credit union PAL
Federal credit union payday alternative loans are capped at 28% a year with an application fee of $20 or less, and can't be rolled over.
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Talk to a nonprofit credit counselor
A counselor goes through your whole budget and tells you what to pay first and whether a debt management plan fits.
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Consolidate with a real loan, not a relief company
A cheaper loan that pays off your payday debt can work; a company that wants fees before settling anything is breaking FTC rules.
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Bankruptcy, as the last resort
If payday loans are part of a larger pile you can't repay, talk to a bankruptcy attorney after the counseling federal law requires.
Who runs this site
PaydayLoan.Help is an independent information site for people who already have payday loans and want out. We aren’t a lender or a loan broker. We don’t run payday lender ads, and we never refer anyone to a payday lender.
If you use the help form, we pass what you tell us to a nonprofit credit counselor or to a lender offering lower-cost loans. Some of those referrals may pay us a fee. That’s how the site can stay free, and it’s spelled out in our disclosures. It never changes what we publish about the law.
How the state rules are checked
Payday loans are mostly regulated by states, and the rules vary enormously. Some states allow them with limits, some allow only longer installment loans, and some don’t allow them at typical payday prices at all.
Every state page is built from two places: the state’s statute, and the state’s lending regulator. We read the law itself rather than someone else’s summary, and each page shows the date it was checked. Where a regulator publishes a license lookup or a complaint page, the state page links to it so you can confirm a lender yourself.
Federal rules, like the credit union PAL limits, the Military Lending Act and the CFPB’s limit on repeated withdrawal attempts, are read from the regulation text and linked in each guide.
Laws change. The statute and the regulator are the final word, and if you find something out of date, write to hello@paydayloan.help and we’ll fix it.
Where to start
If a payment is coming out of your account in the next few days, start with stopping the withdrawals. Otherwise, the full order of moves is in how to get out of payday loans, and the calculator will show you what your loan is costing compared with a 28% credit union loan.
Guides
How to get out of payday loans: the order of moves that works
Stop renewing, control the withdrawals, ask for your state's payment plan, then a 28% credit union loan or nonprofit counseling. Fees worked out.
Military Lending Act and payday loans: your protections
The MLA caps covered loans at 36% MAPR, bans same-lender rollovers and forced arbitration, and voids loans that break the rules. Who's covered.
Nonprofit credit counseling for payday loans: what to expect
How a nonprofit credit counselor helps with payday loan debt, where to find one (NFCC, FCAA), what a debt management plan can and can't cover.
Online and tribal payday lenders: does your state's law apply?
A federal appeals court held a tribal choice-of-law clause didn't shield CashCall from state law. How to check a lender's license and what to do.
Payday alternative loans (PAL I and PAL II): rules and how to get one
Federal credit union PALs cap the rate at 28% and the application fee at $20. PAL I vs PAL II terms side by side, and how to find one.
Questions people ask
Is PaydayLoan.Help a payday lender?
No. We don't lend money, we don't broker loans, and we never refer anyone to a payday lender. We publish information and can connect you with nonprofit credit counseling or lenders offering lower-cost loans.
If I stop the automatic withdrawals, do I still owe the loan?
Yes. The CFPB says revoking a lender's authorization to debit your account does not cancel the loan. It puts you back in control of what gets paid first while you work out a plan.
Can I be arrested for not paying a payday loan?
The CFPB says a debt collector can't threaten to have you arrested, or have you arrested, for an unpaid debt. If you're sued, though, ignoring a court order can lead to arrest, so never ignore court papers.
How much does renewing a payday loan cost?
At $15 per $100 for 14 days, a $400 loan costs $60 every time you renew. Five renewals is $300 in fees, and you still owe the $400. That's about 391% APR.
What's a payday alternative loan?
A small loan from a federal credit union with a maximum rate of 28% a year and an application fee of no more than $20. PAL I lends $200 to $1,000; PAL II lends up to $2,000 with no membership wait.
Want a person to look at it with you?
Ask to be connected with nonprofit credit counseling. Free to ask, and we don't check your credit.