What happens if I do not pay back my Personal Line of Credit?
Your account may be suspended. The lender may also be able to take the money you owe directly from your checking account or any other account you have at that bank or credit union. This is called “setoff.”
Setoff is not permitted for credit card accounts, but is permitted for personal lines of credit. Read your contract before you sign it so you know what you are agreeing to.
Not paying back your Personal Line of Credit may also negatively impact your credit score and history, which could impact your ability to get credit in the future. You may also be liable for collection costs in some states.