Payday Loans

The Best Ways To Get Help With Payday Debt

If you are looking out for ways on how to get help with payday debt, you will be glad to know that the laws in the United States of America have provided you certain legal rights. The more you are aware about those rights, the more effectively you can protect yourself from the predatory nature of payday lending practices. However, the legal options and your rights will mainly depend on which state you live in. The answers to the following questions will help you determine your strategies on how should go ahead and deal with your mounting and seemingly never-ending payday debt problems.

Is Payday Lending Legal In Your State?

Before you start working on your strategies to get help with payday debt, you must first find out if payday lending is legal in your state. There are sixteen states that have either completely banned payday loan programs or have imposed strict legal provisions to restrict interest rates. Look at the loan agreement you have signed. If you are living in a state like Georgia, where it is not legal for any lender to offer these types of short-term cash advances, you can file a complaint with your state authority or directly with the FTC (Federal Trade Commission). However, here it is important for you keep in mind a couple of things. For example, the state laws are applicable not only to the lenders that are based in the state but also to those payday loan companies that are running their business from other places through Internet. The laws apply depending on where the borrower resides not on where the lenders have their offices based. It means if you are in Georgia and you have borrowed from an Internet payday loan company, it is an illegal act on part of the lender. Besides that, you must also note that even if payday lending is illegal in your state, if you have borrowed money from a lender as part of a cash advance program, you will still be liable to make the repayment, but only the principal amount (without any interest or penalty). So, you can make things easier for yourself by making an offer to your illegal lender that you are willing to repay the principal amount if they agree to close your debt account after that.

What Is The Maximum Interest Rate Applicable In Your State?

When it comes to getting help with payday debt, you must also be well aware of the maximum interest rate cap that the laws have imposed in your state. If you find out that your lender is charging you more than the maximum rate legally allowed as per your state laws, you can again file a complaint. To make things easier, you should also inform your lender that you are aware of the legal provisions applicable in your state and that you also know about your legal rights. If the lender agrees to lower the rate within the range allowed by law, it is well and good. If not, you have the right to refuse to make the repayment.

How Many Times The Loan Account Can Be Renewed Or Rolled Over?

While you are looking out for ways on how to get help with payday debt, you must also be well aware of the rollover laws of your state. It is a very common practice among payday loan companies that when a borrower fails to make the repayment on the set due date, they renew the loan account and extend the due date for another month pretending they are giving more time to the borrower to repay the loan. The catch here is that the lenders charge interest and a hefty amount of penalty for this extended period of time, which can be a whopping sum of money. With a 3-digit APR, just one rollover may cause the outstanding debt balance to grow double or triple of the actual principal amount. Because of the predatory nature of the provision of rollovers and renewals, many states have prohibited such practices. Many others have restricted the number of times a payday loan account can be rolled over or renewed. Therefore, awareness of these laws is also very important for you.

Overall, as you can see that getting proper help with payday debt is not a very difficult task for those who know how to use their legal rights.


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