The borrower is also not required to pledge any personal property with the lender towards collateral or security. Due to this, several borrowers have an opinion that one can easily get off without paying back the payday loan.

However, the fact is that one needs to face really dire consequences in case the payday loans are not repaid. Listed below are a few of them.

1. A payday lender provides loan to any borrower only after getting a post-dated check. This check is submitted by the lender in the bank on the next payday so as to get back the loan amount. Insufficient funds in the account will result in the check bouncing, an activity that is considered as a criminal offence as per banking norms. Apart from the bank charging overdraft fees, even the payday lender will charge certain extra fees for not paying the money.
2. In case, the borrower continues to ignore or avoid his/her payday loan repayment, the lender then refers the issue to a payday debt collections agency. The primary strategy followed by these agencies is to embarrass the borrower about the debt by making telephone calls and sending reminders almost every day.
3. Certain agencies tend to adopt more aggressive methods of debt collection such as threatening and bashing. Even payday loan lenders tend to encourage these agencies by providing incentives to those who can recover the debt quickly and efficiently.