Pay day loans are landing individuals in prison. Pay day loans provide employees a method to find some quick money.

Pay day loans are landing individuals in prison. Pay day loans provide employees a method to find some quick money.

By Aimee Picchi

Pay day loans provide employees ways to acquire some fast money. Exactly exactly What might shock numerous borrowers: Falling behind on repaying those loans can secure them in court — and also behind bars.

The problem comes from a clause within the cash advance contracts, in addition to quirks when you look at the U.S. system that is legal. Significantly more than 99per cent of storefront payday loan providers have actually what is called a small-claims “carve down” inside their agreements, which means in the place of looking at arbitration in the event of an unpaid financial obligation, they are able to make the situation to court that is small-claims.

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