Payday Loans

Wyoming Payday Loan Laws

If you are considering borrowing short-term cash advances or if you are already facing a debt problem caused by these easy yet risky lending programs in the state of Wyoming, you must have a thorough knowledge about Wyoming payday loan laws. The state laws have been introduced recently with an objective to provide some protection to the rights and interests of the consumers against the unfair practices that payday lenders usually get involved in. Though certain restrictions have been imposed on the lenders, it is important to note that payday lending is still a very expensive financial option in this state. No solid attempts have been made to reduce the rate of interest that payday loan companies are charging on short-term cash advances. The APR (Annual Percentage Rate) for these programs in Wyoming can be as high as 700% per annum or even more. Besides that, there can be several other charges also. The only relief is that rollovers are prohibited, which makes sure borrowers do not get trapped in a viscous cycle of never-ending debt. Following is a brief rundown on some of the specific provisions made under the state laws.

Criminal Suits Cannot Be Filed Against Borrowers

As per Wyoming payday loan laws, if a borrower who takes a payday loan for a short-period of time and the fails to pay off the same on the set due date due to his/her poor financial position, it cannot be treated as a crime and so no criminal lawsuits can be filed against him/her. It is a civil case and lenders have an option (it is up to them to use it or not) to file a civil lawsuit against defaulters. It is very important for you to keep in mind that you can never be sent to jail for non-payment of payday debt. Besides that, the Fair Debt Collection Practices Act (FDCPA) applies to payday lending programs also, which means payday loan companies must not harass you in any manner even if you are unable to make the repayment. They do not even the right to garnish your wages. Wage garnishment and forced liquidation of some assets are some of the possibilities that can happen only after a court order (as a result of the civil suit filed by the lender). If your creditors are harassing you and not following these laws, you can file a complaint against them to your state authority.

Rollovers Are Not Permitted

Wyoming payday loan laws prohibit the provisions of rollovers or renewals or consolidation or refinance of payday loans when a borrower fails to make the repayment in time. In many states, where rollovers are permitted, lenders usually encourage (in fact force) borrowers to borrow a new loan to pay off the previous one. Alternatively, they simply renew the loan account, which means the borrowers are liable to pay interest and other charges for another month. Considering the sky-high interest rates (in 3-digit APR) that are charged on these loans, the outstanding loan balance eventually becomes double or triple within a matter of just one or two months. Since the main target consumers for these types of lending programs are the ones who have hand-to-mouth monthly salary, majority of borrowers often find themselves trapped in a never-ending cycle of payday loan debt. Fortunately, such things are not very likely in the state of Wyoming. Still, you have to be very careful while you borrow these loans, as the road to repayment still can be a very tough one due to the sky-high APR.

APR And Other Finance Charges

Wyoming payday loan laws allow lenders to charge either $30 or a flat 20% on every $100 of loan issued for a 14-day repayment period. Besides that, they can also charge up to $30 additionally in terms of other finance charges. The APR thus can be as high as 780% per annum.

If you find out that your lenders are not treating your fairly and that they are violating some of the laws, you can contact the Wyoming Division of Banking and file your complaints with them. You can also contact them for more detailed information about your rights and options under Wyoming payday loan laws. They are accessible via fax at (307) 777-3555 and via phone at (307) 777-7797. Their office is located at Uniform Consumer Credit Code, 122 West 25th Street Cheyenne WY 82002.

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One Response to “Wyoming Payday Loan Laws”

  1. Martin says:

    A very nice article written on the laws in the state of Wyoming for the persons fallen in the debt due to short term cash loans. The laws have been designed in such a way that borrower’s interest should be on top and they can not be get harassed by lending institutions. No arrangements have been made in the state laws to reduce the high rate of interest .The per year rate can be higher in the multiple of hundreds. No top up of loan is allowed in the state laws. If you have failed to repay the loans in due time you can not be prosecuted in the criminal court , you can not be sentenced if you can not repay the loan. Lending house can not harass you on repayment front nor they can recover it from your salary account . Many lenders try to renew your loans but you should strictly avoid this practice as this will create a big trouble for you. Renewal of your existing loans is a never ending process which will trap you in the web of debt. No restrictions have been put on the charging of high interest rate.

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