What Are the Consequences of Stopping Payments with Progressive Leasing?
Consequences of Stopping Payments with Progressive Leasing
If you find yourself unable to continue with your lease payments due to unexpected situations, you have the option to cancel your lease at any time. Importantly, you can return the items to Progressive Leasing without additional charges or penalties. You will only owe unpaid lease-to-own costs.
However, if the lessor is unable to repossess the leased item, they may likely file a civil suit against you to recover the value of that item plus interest, fees, and costs. If granted judgment, they can collect against you, which may include garnishing wages or bank s (among other things).
Additionally, not making the payment constitutes a breach of contract, allowing the lessor to repossess the vehicle. This action will negatively impact your credit score and rating, making it difficult to secure new avenues of credit, such as a mortgage, another auto loan, or credit cards.
While failure to pay Progressive Leasing is not classified as a criminal offense, it is possible that you could end up in jail if you fail to respond to legal action taken against you.
Can Progressive Leasing Take Legal Action for Non-Payment?
Understanding the consequences of not paying a leasing agreement with Progressive Leasing is crucial for consumers. Individuals in financial distress may wonder if such a situation could result in imprisonment. This article explores the legal ramifications of failing to pay Progressive Leasing, examining various aspects that determine liability and potential outcomes.
First, it’s essential to distinguish between civil and criminal liability when considering the consequences of not paying Progressive Leasing. Civil liability arises from a breach of contract, which is the nature of most leasing agreements. Failing to make payments typically results in actions like lawsuits for breach of contract. The creditor, Progressive Leasing, may seek a judgment to recover the owed amount through wage garnishment or liens on property. However, this does not lead to criminal penalties or jail time.
When Progressive Leasing pursues legal action for unpaid debts, the process often begins with filing a lawsuit. If the court rules in favor of Progressive Leasing, a judgment is issued, legally obligating the debtor to pay the specified amount. This judgment can be enforced through methods like wage garnishment or property liens. Federal law limits garnishment to 25% of disposable earnings or the amount by which weekly income exceeds 30 times the federal minimum wage, whichever is less.
Moreover, failure to comply with a court order, such as ignoring a summons or not appearing for a debtor’s examination, can result in contempt of court charges. If collection efforts remain unsuccessful, Progressive Leasing may file a lawsuit to obtain a court judgment. Once a judgment is secured, the company can enforce it through mechanisms like wage garnishment.
Importantly, we no longer have ‘debtor’s prisons’, so not paying your debts does not have criminal implications in the absence of some sort of fraud element. Nonetheless, failure to pay will almost certainly show up on your credit rating. It will also likely result in a collection action against you, with further damage to your credit.
How to Safely Cancel a Progressive Leasing Agreement?
You can cancel your Progressive Leasing agreement at any time. To do so, you have the right to return the items without any additional charge or penalty.
Here are the steps to safely cancel your leasing agreement:
- Call Progressive Leasing at (877) 898-1970 to set up the return.
- If you choose to return the items, your lease-to-own contract will be canceled, and no further payments will be required.
- You will only owe for the time you used the items, with no penalties for cancellation.
Additionally, you can end your agreement on your own by ing customer service during their working hours:
Working Hours: Monday to Friday: 10 a.m. to 7 p.m. Saturday: 10 a.m. to 6 p.m.
