Some states have implemented caps on the amount of interest that payday lenders can charge, in order to shield consumers from excessive fees and interest rates. Borrowers that are considering a cash advance should be mindful of the potential consequences of default, including legal action and commercial collection agencies efforts. Borrowers who're considering a pay day loan should be conscious of the potential consequences of default, including law suit and damage with their credit score. payday loans online instant Bankruptcy can be a legal method that can eliminate most unsecured debts, including payday advances, although it will surely have serious consequences for your borrower's credit score and financial future. The high interest levels on payday advances can make it difficult for borrowers to repay the money on time and may lead to a cycle of debt. Some payday lenders may need borrowers to sign a contract that includes mandatory arbitration clauses, which may limit the borrower's power to pursue a lawsuit in the event of an dispute. Borrowers who cannot repay a cash advance may face harassment from lenders, including repeated calls, emails, as well as visits on their home or workplace. Some payday lenders may offer rollover or extension options, which allow borrowers to extend the repayment period of the money in exchange for additional fees and interest.