Payday Loans

Idaho Payday Loan Laws

As per Idaho payday loan laws, it is legal for check cashers and other lending institutions to offer short-term cash advance programs for the consumers residing in the state of Idaho. Idaho is one of those few states that have done very little (or almost nothing) to protect the rights and interests of its consumers. Still, you are strongly recommended to have a thorough understanding about the various legal provisions that are applicable to payday lending in Idaho. The more you know about the laws applicable in your state, the better you will be able to decide about your course of action, whether it is about repayment of your existing outstanding payday debts or about borrowing a new loan.

The Idaho Laws Prohibit Criminal Actions Against Borrowers

Payday lenders and the payday debt collectors are often very aggressive in their debt collection practices. They try to threaten the borrower in various ways. For example, they may threaten a borrower with a criminal lawsuit, but it is very important for you to keep in mind that Idaho payday loan laws strictly prohibit taking criminal actions against those borrowers who are unable to repay the loan in full because of poor financial position. Criminal charges may be placed against you only if you borrowed the loan through a fraudulent activity, such as by providing false or incomplete information.

Collection Fees

The maximum NSF fee that payday lenders can charge in the state of Idaho must not exceed $20. Besides that, if there is a specific provision disclosed in the loan contract, up to 12% of interest per annum may also be charged on unpaid amount.

No Provision For Mandatory Repayment Plan

Many states have made it mandatory for the lenders to provide an affordable repayment plan to the borrowers so that they can easily repay the loan, but there is no such provisions under Idaho payday loan laws. But again, this option is still open to you; it is just that your success will depend on how efficiently you can negotiate with the lender. It is entirely up to the lenders to decide whether they should accept any such repayment proposal.

The Maximum Number Of Times An Unpaid Loan Can Be Rolled Over

One of the major culprits that make short-term cash advances very risky and dangerous is the provision of automatic renewal of unpaid loans every month, which means more interest (at triple digit APR) and other financial charges. The outstanding balance thus grows very fast and within a couple of months it becomes just double or triple of what you had actually borrowed. In some states, there is no limit on how many times the unpaid loan can be rolled over again and again, but in Idaho, this number is restricted to three. As per Idaho payday loan laws, payday lenders cannot renew your outstanding loans to more than three times. If you fail to make the repayment in full even after three rollovers, your account will be sent to collections, which means no further interest can be charged on your loan amount. It will keep a break on the growth of your outstanding debt. Still, it is important to note that even three rollovers are too much and you are strongly recommended to do your best to avoid it.

Maximum Loan Amount And Maximum Number Of Loans At A Time

Though there are no specific provisions on how many outstanding loans you can have at a time, the maximum aggregate loan amount must not exceed $1000 in any case.

APR And Other Financial Charges

Unfortunately, there is no limit on how much interest or other financial charges can be charged on payday loan in Idaho.

No Provision For Minimum Or Maximum Repayment Period

Unlike the laws in other states in the United States of America, Idaho payday loan laws do not have any specific provisions on how much time the borrowers must be provided to make the repayment of the loan.

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Posted in Payday Loan Laws, Payday Loans | 1 Comment »

One Response to “Idaho Payday Loan Laws”

  1. Robert says:

    Very good and informative points. Idaho has done very small effort to protect its residents from becoming the culprits of pay day lenders. But if you are a resident of Idaho and you are going to take pay day cash advance, it is very necessary to go through all the laws and rules applicable in the state. Creditors are not liable to take any criminal action against the borrower so there is no need to worry about the harassment of sending into the jail. If you are find to be involved in any type of illegal or fraudulent activities, criminal case can be registered against you. Idaho activities have also restricted collection fees to a certain limit. The major cultrit of the pay day lending program’s are the automatic renewal or roll-overs of the loan. It is restricted to the number 3. After that you can not do the payment, your account will go in the collection status, and there is no provision for an alternative repayment plan so be aware of that. Idaho has not prohibited the maximum APR or other financial charges, it is really bad as the company can charge really high APR.

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