Payday Loans

Nevada Payday Loan Laws

Nevada payday loan laws have done nothing much to protect the consumers from the claws of predatory payday lending. Still, there are a few legal restrictions that have been imposed on lenders to give some relief to those borrowers who are feeling great difficulty in making the repayment. Short-term cash advance in the state of Nevada can be very risky and expensive. Following are some key points regarding the related legal provisions applicable in this state.

Criminal Actions Are Prohibited

Though a few states have allowed payday lenders to file criminal lawsuit against those borrowers who do not pay their loan in time, Nevada has strictly prohibited it unless the consumer borrowed the loan through some fraudulent activities or with a criminal intent.

Collection Fees

Nevada payday loan laws allow lenders to charge various types of collection fees that include Service of process costs, Reasonable Attorney’s Fees, Court Costs, and $25 dishonored check fee. Besides that, the laws have also specified it clearly that lenders cannot charge more than one fee for closed account and more than two fees for insufficient funds. It means lenders cannot send the same check for collection for more than two times.

Repayment Plan Is Mandatory

The only relief that consumers seem to have got as part of the state laws is that an affordable repayment plan has been made mandatory. It means when a borrower fails to make the repayment, the lenders must allow them to repay in small monthly installments. But, here again, there’s a catch. The laws have not prohibited the rollovers.

Rollovers Permitted

Nevada payday loan laws have not said anything specifically regarding the rollovers. But, as per the laws, payday lenders cannot extend the repayment period for more than two months from the due date (that the borrower missed). Since rollovers are indirectly permitted, it is not clear when the lenders can be obligated to offer that mandatory repayment plan to the borrower.

No Limit On Interest And Other Fees

Horribly, the state laws have not imposed any maximum limit on interest and other financial charges on payday loans. It simply means payday lenders here are free to charge as much as they want. However, one thing has been made specifically clear in the law code that when a borrower misses the due date, the interest charged for the extended period of time must not be more than 10% plus the prime rate charged by the largest bank in Nevada.

Maximum Number Of Loans And Maximum Loan Amount

There is no maximum limit on how many outstanding payday loans you can have at one time, but the maximum amount of the loan must not exceed twenty-five percent of your gross monthly income.

If you think that your lenders are not treating you fairly, you can file a complaint with the Nevada Financial Institutions Division. You can also contact them for more detailed information on Nevada payday loan laws. You can fax them at (702) 486-4563, call them at (702) 486-4120, and visit their office at 2785 E. Desert Inn Rd., Suite 180 Las Vegas NV 89121.

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

One Response to “Nevada Payday Loan Laws”

  1. Jack says:

    Not so much have been offered in the state laws of Nevada to save borrowers from the harrassasment of money lenders beside some legalities posted on companies for the consumers who are in a difficult position to pay the amount in time. Small term loans are proving to be dangerous and luxurious here. Non repayment of loan amount in time can not be sued in the court unless and until it has been done purposely. Collection charges have been specified according to services offered. Every lending house has to offer a simplified repayment schedule in case any one is not able to pay his dues within stipulated time, however turnover of the loan has not been abolished. Turn over can not be enhanced beyond 60 days. No restriction has been imposed on lending houses from charging high rate of interest. You can take multiple loans at a single time but your income should support this and the maximum amount has been fixed per person. Still if you are being cheated by any financial institution you can go directly to state authorities to file a complaint.

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