Wednesday, 1 October 2014

is there crimal conseques to defaulting on a personal loan

Question

is there crimal conseques to defaulting on a personal loan



Answer

Usually these matters are considered civil and not criminal, but there have been cases where people are criminally prosecuted for defaulting. If the other party, and the police/state, believe that the person taking out the loan never had any intention and/or ability to repay the loan, then they may consider that to be fraud. In such a case, a person could be criminal liable if they made fraudulent representations on a loan and never had any intention of paying it back. But simply defaulting on a loan by itself is not a criminal act.



No comments:

Post a Comment