Sometimes a payday loan store will call you when you have missed a payment and threaten you. They may try to scare you into paying them some money, but you cannot go to jail for failing to pay a payday loan.
The only thing the payday loan store can do is sue you in court. If they win, they can garnish up to 15% of your wages to pay off the loan.
If you are retired or unemployed there will be no wages for the payday loan store to garnish. But with the help of a lawyer, you may win the lawsuit.
Remember, even if they win a lawsuit against you, a payday loan store cannot touch your monthly social security or pension check.
Updated: August 2017