I got a few small tribal loans to cover some medical bills, but the interest rates are insane. I’ve read online that these loans aren’t enforceable in some states, so people are saying to just stop paying them and block any payments.
But I’m worried about what could happen—getting sued, court action, wage garnishment, etc. I already put a stop payment on them at my bank and revoked ACH access, but I keep thinking they’ll come after me since I signed the loan agreements.
Has anyone here been through this and just ignored tribal loans? What happened? Did they actually try to collect, or did they just drop it? I’m a little freaked out by the idea of legal trouble, so I’d love some advice.
Reilly said:
Just don’t pay them, close your bank account and get a new one… they can’t take legal action.
Really? They can’t? Thanks! I looked into it more, and I found out Ascend Loans has a class-action lawsuit for charging illegal rates in Illinois. Spotloan got sued too and had to offer loan forgiveness or pay cash to the people who took loans.
Seems like they can’t report to the main credit bureaus, so can they really send it to collections or go after wages?
Worst case, I’m “in bad standing” with them and can’t borrow again (no big loss, lol). This shouldn’t hurt my main credit score, right?
Lesson learned—I’m definitely staying away from these loans in the future. I’ll look for valid options or maybe a co-signer if I need one.
So basically, I’m free to ignore them? I’m a little worried because I did sign their agreements, but it sounds like they’re not really legal and wouldn’t have any case in court?
Should I cancel my email too or just block them?
I already stopped payment at my bank for all four loans and called to revoke ACH—two confirmed they got it. So now, just ignore their calls and flag their emails as spam?
Thanks, I feel better now. I’ve always been careful about paying my bills, so this has me stressed. I’ll set up a plan to pay my medical bills directly and avoid these high-interest loans forever.
Thanks again! It’s almost funny knowing they can’t really do anything. This loan didn’t cover everything, but it helped with some bills, and now my payments will be lower.
How could they, though? They include arbitration agreements, and many of these lenders aren’t legally licensed in some states. I’ve found out two of them are facing lawsuits for illegal rates. My state caps loan interest, and their rates are way over the limit. Not sure they’d stand a chance in court.