The US Laws For Online Payday Cash Loan
The laws that regulate online payday cash loan programs in the United States of America vary from one state to another. Since payday lending works differently as compared to how the conventional loans work, the laws are getting stricter with every passing year in order to ensure the rights and welfare of the consumers remain well protected. These small short-term cash advance programs have become very popular in the last few years because of the lucrative features they offer, such as very easy qualifying criteria, no credit checking, very little
or no paperwork at all and quick approval. The money you borrow as part of these programs is transferred directly to your bank account; usually, it has to be a checking account, but many lenders these days are also issuing loans to those who have a saving bank account.
But, despite all the attractive features that these easy and fast payday loans boast about, there are several negative aspects as well, such as the unusually very high cost of lending, unfair repayment terms and the fact that a vast majority of payday loan companies do not follow the laws thoroughly. Following is a brief rundown on some of the important legal points that you must keep in mind while you are considering borrowing an online payday cash loan.
Do The Laws Of Your State Apply To Those Lenders Who Are Operating Their Business Through Internet?
Yes. It is very important for you to understand that as long as a lender is issuing a cash advance to you, they must abide by the payday loan laws of your state regardless of whether they have their offices located in your state or not. Always remember, the laws of the state where the borrower is a resident member of matters, not the laws of the state where the lenders have their offices based on. Therefore, you are strongly recommended to be well informed about the laws that regulate this form of lending in your state. This way, you will be able to do your research and find out whether the loan terms that are being offered to you are in accordance with the laws of your state.
What If You Are Living In A State That Has Banned Payday Lending?
There are sixteen states in the US, where all sorts of payday lending, including online payday cash loan programs, have been officially declared as illegal. If you are living in such states, such as Georgia, there is no legal way to obtain a payday cash advance. However, if you search online, you can easily find a very long list of Internet-based payday loan companies that are willing to issue you a cash advance. You are strongly recommended to be wary of such lenders because they are clearly scams.
You can find detailed information about the specific laws for online payday cash loan programs that are applicable in your state by clicking on the relevant links on the left side menu on this page.