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Short-term loans, like payday loans, that carry a combination of high interest and short-terms, can be difficult to repay on time.. An online payday loan is a short term, small dollar loan secured by your paycheck. The entire transaction occurs online.
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A payday loan default can drain your bank account and trigger collection calls, a lawsuit and wage garnishment. Here are some actions you can take to protect yourself if you cannot. Failure to repay a loan is not a criminal offense. In fact, its illegal for a lender to threaten a borrower with arrest or jail.
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