my 411 canada
www.my411money.com/Most lenders repeatedly attempt to withdraw the funds from your bank account, as allowed per the loan agreement terms. If the transactions are declined by your bank due to insufficient funds, the lender may initiate withdrawals for smaller amounts.
Even if the lender collects a portion of the outstanding balance using this method, you could still face financial difficulties if other banking transactions are declined. Plus, the bank fees could pile up, costing you several hundred dollars in a short period.
Collection agencies getting involved
You can expect the lender to initiate collection efforts, including repeated calls and letters demanding payment, while continuously attempting to draft your account. The lender could also sell your debt to a collection agency or hire an attorney to collect what’s owed.
You may be able to halt collection actions by requesting an extension from the lender. Select states have laws that mandate payday lenders to grant extended payment plans to borrowers if requested. Be mindful that these extensions often come with additional fees and interest.