Payday Loans

What Are The US Laws For Same Day Cash Advance Programs?

A same day cash advance program is a type of payday loan, where the approval for the loan comes within just a few hours. In fact, you even get the money transferred to your bank account within twenty-four hours. In the United States of America, there are no specific federal laws to regulate this type of lending, but every state does have its own set of laws, which the lenders must follow. It is important to note that even if the company you are borrowing the cash advance from is running its business through Internet and has its offices located in any other state, they must follow the laws applicable in your state if they are issuing the loan to you. The state where you reside matters in this regard, not the state where the office of the lender is located it. Following is a brief rundown on some of the legal aspects associated with these programs.

Legal Status

The first thing that is very important for you to find is whether same day cash advance or any other form of payday lending is legal in your state or not. As of now, sixteen states and the District of Columbia have strictly banned payday lending programs. The states where payday cash advances are strictly prohibited include Georgia, New York, New Jersey, Arkansas, Ohio, New Hampshire, Maine, Arizona, Connecticut, Massachusetts, Oregon, Maryland, North Carolina, Vermont, Pennsylvania, and West Virginia, . If you are living in one of these states and have already borrowed a cash advance, you are liable to pay back only the principal amount (without any interest or other finance charges) as per the laws. Besides that, you can also file an official complainant against the company either the FTC (Federal Trade Commission) and/or with your state authority.

Maximum Rate Of Interest

Every state has also imposed a maximum limit on the rate/amount of interest that can be charged on a same day cash advance. If you are borrowing a new loan, do not forget to review the rate of interest that the lender is charging. Do not sign up if it is higher than the APR permitted under the state laws.

Number Of Rollovers Permitted

Most of the states have strictly prohibited the provisions of rollovers or renewals, but some states still allow lenders to rollover loans if the repayment is not made in a timely manner, but even those states have restricted the number of times such rollovers can be made.

Mandatory Repayment Plan

Some states have also made it mandatory for the lenders of same day cash advance to allow those borrowers who are unable to repay the loan to make the repayment in small instalments over a certain period of time.

Collection Charges

Certain maximum limits have also been imposed on the amount of collection fee that lenders can charge on cash advance debts. For example, the NSF (non-sufficient fee) fee must not be higher than $30 in most cases. Besides that, most states have also made it illegal for the lenders to send the same check again and again for collections even if it is bouncing every time.

Overall, the awareness of the state laws regarding same day cash advance programs is very important. If you find that your lenders are violating the laws, you can file complaint against them. The laws have provided you certain legal rights, which you must know how to utilize when needed.

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