Minneapolis Bankruptcy Law Blog

In Minneapolis and St. Paul, having a vehicle is practically a necessity, especially in the winter months, when snow and ice can make even the simplest commute a challenge. During this time of year, the last thing anybody wants to receive is a letter threatening repossession.

Cars and other vehicles are typically financed by taking out a loan. The loan is often secured by the vehicle itself. In the loan contract, there is language in it giving the lender the right to "repossess" or take back their collateral if the borrower fails to make the scheduled payment on them. The contract itself will generally state how far behind or "in default" a borrower must be before the creditor has the right to repossess the vehicle.

Lenders do not have to tell individuals when they are coming to repossess a vehicle. They can repossess a car at any time.

A payday loan is supposed to be short term loan that provides quick cash to people with debt problems. They are typically backed by the borrower's next paycheck. Borrowers provide the lenders with either a post-dated check or the routing and account number to a bank account so the loan can be repaid on the next payday.

Monsters on the Net

Taking out an online payday loan seems to be an easy transaction. But for many people who have turned to them in a moment of crisis, the decision to use them has come back to haunt them.