A debt buyer is a type of debt collector who purchases a creditor’s debt at a discount in order to collect on it. Creditors sometimes prefer selling their debts at a loss to debt buyers as a tax write-off.
Simply so, can I go to jail for not paying a payday loan?
You will not go to jail if you do not pay a “payday” loan. … A creditor may pursue collection of a debt through the civil courts in the United States; however, debtors cannot be prosecuted in criminal court for not paying a debt.
Considering this, do payday loans go away after 7 years?
Difficulty securing future financing: Since a payday loan default can stay on your credit report for up to seven years, you may have a tough time getting approved for other loans down the road. Arrest threats: Although it’s illegal for a lender to threaten you with arrest or jail, they may do so anyway.
How long can creditors pursue a debt?
How Long Can a Debt Collector Pursue an Old Debt? Each state has a law referred to as a statute of limitations that spells out the time period during which a creditor or collector may sue borrowers to collect debts. In most states, they run between four and six years after the last payment was made on the debt.
Creditors will usually sell or ‘assign’ a large amount of debts to a debt purchaser. The debts will be sold at less than their face value, but the debt purchaser is entitled to collect the full balance.