Settle A Past Due Payday Loan – 4 Crucial Things To Consider
In order to settle a past due payday loan, there are several things that you need to take into your careful consideration. It is true that payday lending programs are designed in such a way that allows you to borrow money through a very simple and fast process. You can easily get the money you need deposited in your bank account. Most lenders approve your loan application and even transfer the fund within propecia online pharmacy a matter of just a few hours. Another attraction is that almost anyone can qualify for these short-term loans because the eligibility criteria are very simple. But, despite all these lucrative features, no one can deny the very fact that it is a highly risky loan program and majority of borrowers often end up getting trapped in a vicious cycle of debt. You can easily obtain these loans and easy miss the payments on due date and thus can easily have your loan become a past due. Once you miss the due date, your debt starts rising very fast because lenders charge extremely high amount of interest as well as penalty fees. If you are also struggling with payday debts and are looking out for ways on how to clear your past dues, the following information should help. Following are the 4 crucial things that you must work on while you are trying to get out of the debt trouble caused by payday loans.
Never Ask For A Rollover
Though you do need extra time to settle a past due payday loan, you are strongly recommended never to request your lender to renew or rollover your loan. And, if your lender is still doing it, you must first look into the payday loan laws applicable in your state. It is very important for you to keep in mind that majority of states have strictly prohibited the provisions of rollovers or renewals of payday loans when they become past due. Lenders can charge certain penalty fees, but they are not allowed to charge additional interest on the loan amount if you are paying back after the due date has crossed. The states where rollovers and renewals of past due payday loans are legally prohibited include Wyoming, Washington, Virginia, Tennessee, South Dakota, Oklahoma, Ohio, New Mexico, New Hampshire, Nebraska, Montana, Mississippi, Minnesota, Michigan, Kentucky, Iowa, Indiana, Illinois, Hawaii, Florida, California, and Arkansas. As you can see, very few states are left where rollovers are legally permitted, but even in those states, there are legal limits on how many times a payday loan can be renewed or rolled over.
Check The Legal Status Of Payday Lending In Your State
While you are working on your strategies to settle a past due payday loan, you must not forget to check if payday lending is legal at all in your state. There are sixteen states that have either completely banned payday lending programs or have imposed low-rate cap (the maximum ceiling of interest rate is 30-40% in most of those states); those states include Georgia, New York, New Jersey, Arkansas, Ohio, New Hampshire, Maine, Arizona, Connecticut, Massachusetts, Oregon, Maryland, North Carolina, Vermont, Pennsylvania and West Virginia. Even in District of Columbia, payday lending is defacto prohibited. If you are living in any of these states and a payday loan company has still issued you a cash advance, you will legally be obligated to pay back only the principal amount of money. You cannot be held liable to pay interest or penalty charges in such cases. Besides that, you obviously must also file an official complaint against such illegal lenders.
Mandatory Repayment Plan
An easy way to settle a past due payday loan is by requesting your lender to allow you to pay back in easy installments over a certain period of time. In fact, there are some states that have made it legally mandatory for payday lending companies to offer an affordable repayment plan to those borrowers who are going through financial hardship and are thus unable to repay the loan in full as a one time payment. The states that have made such repayment plans mandatory include Washington, Virginia (once per year), Oklahoma, Ohio (60 days, no fees), New Mexico, Nevada, Michigan, Indiana, Illinois, Florida, California, Alaska and Alabama. If you are living in any of these states and your lender refuses to accept any such repayment proposal, you can get legal help and file complaints against them.
Legal Limit on NSF (Non-Sufficient Fund) Fee
Before you start working on a strategy to settle a past due payday loan, you must first review the charges that have been applied on your loan account. Most payday lenders are quite unfair in their collection practices. When you sign up for a payday loan, you usually have to submit a post-dated check to lender. The lender sends this check to your bank for collection on the set due date. If you do not have sufficient fund in your bank account, your check will obviously get bounced. This is an opportunity for the lender to charge you a certain amount of NSF fee. But, most lenders are unscrupulous ones and they keep sending the same check (which has already been bounced) again and again for collection. Every time your check bounces, they charge a hefty amount of NSF fee. But, now that most states have enacted special laws to regulate payday lending, certain legal limits have been imposed on how much NSF fee can be charged and how many times the check can be sent for collection. The states, where the NSF must not exceed $25 include Washington (one time per loan account), Virginia, Oklahoma, Nevada (one time), Michigan, Illinois (check Presentment limit = 2) and Colorado (check Presentment limit = 1). Likewise, there are other states that have imposed the maximum limit as $10, $20 or $30. At the same time, there are also some states that have made no specific provisions regarding the number of times and the amount of NSF fee that can be charged on past due payday loans.
You can get detailed information about these four crucial points by visiting the ‘payday loan laws’ section in the ‘payday loan’ category. These four points will definitely make the task much easier for you and you will be able to settle a past due payday loan while making the best use of your legal rights.