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It is often that one finds oneself in an unsatisfactory position
of being unable to pay the loan on the due date. In such a
case, it is important to contact the payday loan lender and
work out a deal regarding repayment options. Mostly, all payday
loan lenders are flexible and will offer rollovers or other
options to the customer. The fee structure may double or increase
and it is advisable to pay as much of the principal and fee
amount as possible. However, the most important rule of the
game is not to default on the repayment amount. This will
lead to several problems like additional NSF fees from both,
the bank when the payments bounce and the payday loan lender
or who will extract the pound of flesh as specified in the
contract. The payday loan company can also exercise the option
to send your account to a third party collection agency. Not
only will this prove unfavorable to your long term creditworthiness
but also the default will get reported to consumer credit
agencies. This in turn will make it impossible for you to
acquire another payday loan or even open a new checking account
in the future. Failing all, some payday loan lenders will
sue the defaulting lenders by taking them to court.
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