Taking a loan and never paying it back? PLEASE HELP?
My sister is in a financial mess and no one has extra money to help her. I really tried talking her out of this but she thinks nothing will happen to her except get a strike on her credit score.
Here is her plan….
She wants to take one of thoughs online instant cash loans that don’t check your credit or verify your job that put the cash in your bank account within 24hrs.
She plans on taking out all the money and closing the account.
She said there is nothing the company will do except fwd it to collections and put a strike on her credit. She has excellent credit and does not care if there is one negative.
I explained one negative can destroy credit but she dosent care because she can’t afford next months rent.
She lost her job and plans to be low income for the next 5 months because she went through all her savings.
What will happen if she closes her bank account after getting this money? What should i tell her?
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You are absolutely right, she will destroy her credit.
One of the worst "negatives" you can have on your credit report is an "unsecured" default (such as a credit card or loan). It basically means that someone loaned you money, asking for nothing as collateral, and you decided that you simply didn’t feel like paying it back. It’s bad, right up there with a foreclosure or a repossession. In fact, it can be viewed as worse, because if you fail to pay for a house or a car, the bank can take them back and sell them to get some of their money back. If you default on an unsecured loan or credit card, the lender simply loses everything. They cannot come to your house and take all the stuff you bought with their money.
Your sister thinks that just one negative will not have a big effect on her credit; she is dead wrong. People that were once reliable can become unreliable, and the lenders know that. Next time she applies for any type of credit, the prospective lender is going to look at her most recent credit activity (the fact that she didn’t pay back this loan), not the fact that she USED TO pay her bills, a long time ago. She is right though, all that will happen is it will go to collections and put a strike on her credit. A big, nasty strike. And she’ll get lots of annoying mail and phone calls from these people trying to collect their money.
As far as your actual question: she will not get in trouble for closing her bank account, that is her right to do. She will get in trouble for not paying back the money.
But desperate people do desperate things, and if she doesn’t plan on needing her credit for the next 7 to 10 years, then she probably won’t worry about it too much. But I know what’s going to happen: in two years she will be back on her feet, and wanting to buy a house or a car, and she will be upset that nobody will loan her money, or will do so at an astronomical rate.
Just tell her to think carefully before acting. She’s a big girl, and she’s gonna do what she wants to do.
**EDIT**
By the way, she will not be arrested. This is a civil matter. If she were to walk into the place and forcibly rob them, or sneak in and take the money, that is an offense for which she will be arrested. But it works differently with loans. If they physically hand her the money, and she doesn’t pay them back, they can only take her to court. The police will not arrest her!!!
i would not dare do a thing like this. she may end up in jail if she doesn’t watch out. tell her not to do it.
That’s a bad, bad plan. I’ve heard where some of those loans can have 400-900% interest, and they will find her to get it. They would sue her and garnish her wages, put liens on any type of property she owns, and tack on all that interest until they get payed back.
she could be arrested for fraud… taking money with no intention to pay it back is fraud……and buy closing you bank account that proves it… If she is renting she should try and talk to the land lord to see if they can work it out
she can go wast pots in a restaurant if she’s desperate. They’ll always have a place for her.
I can’t say what they might do to her in jail because I’ll get reported but you may try to imagine
There’s an old saying in the collection business, " If you’re gonna be a thief, make sure you can retire from it".Plus they can take her to court and once they get a Judgment, they will go after her pay. Plus the fact if she has a car, the insurance will go up due to the default.