Payday Loans

The Legal Aspects Of Converting Pay Day Cash Advances Into Installment Payday Loans

With most states coming up with new set of laws to regulate payday lending, it has now become much easier than ever before to convert payday cash advances into installment payday loans. But, not everyone can qualify for this. The state laws have set certain eligibility criteria that you must meet in order to take advantage of the legal provisions that make it mandatory for payday loan companies to allow borrowers to pay off their debts in easy installments. The exact provisions vary significantly

from one state to another. Therefore, it is very important for you to educate yourself about the laws applicable in your state. Unless you know your legal rights as a payday loan borrower, you will obviously not be able to take the best advantage of those rights.

States Where Installment Plans Arte Mandatory In Certain Circumstances

In Alabama, Alaska, Florida, Illinois, Michigan, Nevada and Oklahoma, an affordable installment plan for repayment has been made legally mandatory for payday lenders, but the laws do not say anything specific about the eligibility criteria.

As per the state payday loan laws in California, the installment plans for payday cash advances have not been declared as legally mandatory for pay day lenders, but the laws specify it clearly that if a lender and a borrower fall into any such agreement voluntarily, the lender must not charge any additional fee or interest.

As per the payday loan laws in Indiana, if a borrower gets three consecutive payday cash advances and fails to repay the same in time, it becomes mandatory for the lender to allow that borrower to pay back the due amount in four equal installments (within four months or four pay days). But again, lenders are prohibited to charge additional fee or interest for such installment payday loans.

In New Mexico also, such an installment repayment plan is legally mandatory for lenders. They must allow borrowers to pay back their debts in small equal installments over a minimum period of one hundred and thirty days.

In Virginia, such repayment plans are allowed as per the laws, but borrowers can take advantage of this convenience only once per year per lender.

What If Payday Lending Is Illegal In Your State?

There are many Internet-based lenders who offer online pay day cash advances even to those who are residing in a state where payday lending is not legal at all. Such states include Georgia, New York, New Jersey, Arkansas, Ohio, New Hampshire, Maine, Arizona, Connecticut, Massachusetts, Oregon, Maryland, North Carolina, Vermont, Pennsylvania, District of Columbia and West Virginia. If you are residing in one of these states and have still borrowed an online payday loan, it clearly means only one thing – the lender you have borrowed the loan from is an illegal one.

The only way to deal with an illegal payday loan company is the legal way. However, you do not necessarily have to file a criminal lawsuit against them straightaway. The first step should be to file a written complaint with the relevant authority in your state. For example, The Office of the Commissioner of Insurance is the regulatory authority for these types of cases in Georgia. You can contact them at Industrial Loan Division, Two Martin Luther King, Jr. Drive West Tower, Suite 704 Atlanta GA, zip code – 30334. They also accept complaints through phone calls at 404-656-2070.

to find contact details of the concerned regulatory authority in other states where you can file complaints against illegal payday loan companies.

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