Payday Loans

How To Find If Your Payday Lenders Are Violating The Laws For Pay Cash Advance?

If you are considering borrowing pay cash advance from a payday loan company, it is very important for you to do some basic homework and find out the company is not violating the state laws for payday lending. But, even if a lender is following all the laws religiously, it does not mean that the short-term cash advance loans offered by them make the right choice for you. Despite the very fact that every state has enacted certain laws to regulate these programs, it is quite unfortunate that in majority of the states where payday lending is legal, lenders are allowed to charge extremely high rate of interest. Therefore, if you are thinking about borrowing a new payday loan, you must also do a thorough review of its pros and cons in a way to find out if you can practically afford such loans. The following information should help you make an informed decision in this regard.

Payday Loans Are Not Legal In All States

The first thing that is very important for you to keep in mind is that pay cash advance programs are not legal in all states. There are sixteen states that have banned payday lending. These states are – West Virginia, Pennsylvania, North Carolina, Oregon, Connecticut, Maine, Ohio, New Jersey, Georgia, Vermont, Maryland, Massachusetts, Arizona, New Hampshire, Arkansas and New York. Even Internet-based lenders are legally not allowed to issue short-term payday cash advances to consumers residing in one of these states. If you are living in one of these states and have already borrowed a payday loan from an online payday loan company, it is important for you to know that you are now legally liable to pay only the principal amount (the actual amount of money you had borrowed initially. You cannot be made liable to pay interest or other charges on such loans. Besides that, as soon as you find out that you are dealing with an illegal lender, you must immediately file an official complaint against them with either the Federal Trade Commission (FTC) or with your state authority.

Restrictions On Basic Loan Terms

Even in those states, where pay cash advance programs are still legal, there are certain restrictions on the basic loan terms, such as the maximum loan amount that can be issued to a single borrower, the number of payday loan accounts that an individual borrower can have at one time, the maximum rate of interest and other finance charges that lenders can charge, the maximum amount of collection fee, the number of times non-sufficient fee can be charged, whether an affordable repayment plan for defaulters is mandatory on lenders are not, the minimum and maximum repayment period that lenders must provide to the borrowers, and an array of other such things. You can get the detailed information on this page by browsing through the titles on the left hand side. In this section of ‘payday loan laws’, you can review the state-wise laws through very easy navigation.

Overall, awareness of pay cash advance loans is very important for all consumers, including those who are considering borrowing it and those who have already borrowed it and are now struggling with the repayment.


Custom Search

Tags: , ,
Posted in Payday Loan Laws, Payday Loans | No Comments »

Leave a Reply

You must be logged in to post a comment.