Payday Loans

The Legal Ways To Get Out Of No-Verification Payday Loan Debts

It is easy to get into the debt caused by short-term payday cash advances, but it is often very difficult to get out of it. The point is that, things might be a little difficult; it is not an impossible thing. Now that the majority of states have stricter laws regarding payday lending, there are several legal ways that can help you get out of no-verification payday loan debts. The first thing that is very important for you to understand here is that no-verification loans are not special payday loans. You should not get confused with different tags used with such lending programs. Payday loan companies use these tags with the only objective to make the loan programs more lucrative. The “no-verification” tag only means that the lender is not going to waste time in verifying the details provided you; they are just going to approve it immediately and provide you instant cash. There are several other self-explanatory tags also that many lenders often use, such no teletrack payday loans, no doc payday loans, bad credit payday loans, and others. Despite the tags used with these programs, the fact remains the same – these loans are easy to obtain but can be very risky, as nonpayment on the set due date can push you into a viscous cycle of debt. If you seriously want to get rid of your debt problems, you must first do a proper research on your current situation. Besides that, having a clear understanding on how a payday lending business works will also help you plan for repayment. Following is a brief rundown on how to go about it.

Check The Legitimacy Of The Company You Borrowed The Cash Advance From

While you are trying to find out the legal ways to get out of no-verification payday loan debts, the first thing you have to do is to check the legitimacy of the company you have borrowed the loans from. If you have borrowed from multiple lenders, check the legitimacy for each of them. Many states, such as Georgia, have banned payday lending. Therefore, if you are living in one of those states and a lender (include those who are running their business from Internet) still issues you a payday loan, it is an illegal act. Likewise, most states require the lenders to obtain license before providing such loans to their citizens. If you find that the lenders you have borrowed from are not duly licensed, it only means that you are dealing with an illegal lender. In such cases, the laws say that you are obligated to repay only the principal amount of the loan, which is the original amount of money that you borrowed initially; you cannot be held liable to pay interest (not even on a low rate) or other finances charges on such loans (that have been issued by illegal lenders).

Check The Violation Of Laws

Even if the lenders are duly licensed and legitimate ones, you can still have several other legal ways to get out of no-verification payday loan debts. Almost every state has imposed certain restrictions on payday lenders, such as they cannot charge more than a certain rate of interest. There are also limitations on whether the rollovers are permitted or not; if permitted, how many rollovers are allowed. As per the laws applicable in many states, the payday lenders cannot charge collection fee or NSF (non-sufficient fund) fee for more than once. It means if they are sending the same check again and again for collections while the laws prohibit it, they are doing an illegal act. If you find that your payday loan companies are violating some of the laws that are applicable in your state, you can file a complaint against them. However, here again, it is very important for you to keep in mind that despite your lenders’ involvements in violation of certain laws, you will still be obligated to repay the loan; it is just that you will be asked to make the payment as per the provisions of the laws.

Overall, awareness of the payday loan laws is very important when it comes to using legal ways to get out of no-verification payday loan debts.

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