If you are thinking of taking a payday loan, first, you have to know the states in the US where you can take it legally. That’s because, these quick-cash loans are allowed in 36 states, not all of them. Also, the law regarding the maximum number of loans you can take in a year also differs from one state to another. There are other regulations too that you must know. So it is essential to know the law, before you proceed to accept the loan.
A payday loan offers the much needed respite to all those who are in urgent need of cash. Yes, this is not a long-term solution, but it is best suited to those who are unable to pay their utility bills, must carry out urgent car repairs, or have to pay for some medical expenses suddenly. The processing and approval is very quick. It can happen within 24-72 hours of your application. Even those with poor credit or no credit history can get the loan, as the lending agencies don’t check credit records. There are hardly any paperwork and hassles as well.
Payday loans have faced some criticism, but thousands of individuals across communities are still taking these loans because of their many advantages. However, in spite of the many advantages, many states in the US still don’t allow payday lending. There are other states that allow these loans, with a few restrictions.
We believe that often this criticism is unjust. Payday loans offer real value to people who need the money urgently. Often it is the only way for a lot of individuals to get credit from a legal source.
States That Allow Payday Lending
In the paydayloaninfo.org website you will get links to each state that allows payday lending. Plus, you will also get vital information about the key cost of loan terms as per the current state laws. When you are searching your state, always look for the cost of the loan in dollar terms, and also the annual interest rate in your state for a 14 day loan of $100. Remember, these are short-term loans offered till your next paycheck arrives, so it’s usually for a couple of weeks or so. In some rare instances though, the term of the loan can be extended if you are unable to repay within that time.
Every state page also lists the maximum number of loans you can take in a year. There are limits on extended repayment plans and loan renewals too. Plus, also go through the laws regarding collection limits and the fees a lender can charge when the loan amount is not repaid on time. Each state has also mentioned clearly what a lending company can do to collect the debt if a borrower is not able to honor the commitment of repaying.
States that allow payday loans have also passed legislation to control the rate at which the loan can be offered (small loan rate cap). Check the rate in your state. Now ask your lending company to be sure that you are being charged a rate that is legal according to your state’s latest laws.
Most payday loan companies are honorable businesses that follow all regulations, making it a legal and ethical business. We follow it too. We tie up with lenders who are registered lenders in their state. You can apply for a loan with us here. There is an industry association too that regularly monitors the performance of payday loan companies across the country and reports all violations. These are short-term loans (2 weeks), and so, there is no risk of getting into a long-term debt. So you see, there is really nothing to worry about taking a payday loan.
Contact Information for State Regulators
There are payday loan regulating agencies in all US states. You will find information about them in the respective state pages. Plus, you will also know about their websites and contact information. Keep it with you for future reference. Plus, there are links to the forms you can fill out to lodge a complaint, instructions on how you can file a complaint, and other vital information on payday loans that you might need.
Payday Lending – Legal Status by State
These small loans are subject to state regulations. States have traditionally placed caps on the rates for small loans. The annual interest is usually between 24 and 48 percent with installment repayment schedules. To protect consumer interest, many states have their own criminal usury laws.
Payday loans can be offered legally in those states where legislatures have either deregulated small loans, or where the lenders have been exempted from offering small loans or usury laws, or where there is legislation that allows loans against a check receivable by the borrower.
18 states and the District of Colombia have prohibited high cost of payday lending. There are many strategies the states have used to control the rate, and the payday loan companies are following these regulations as well.
Georgia for instance does not allow payday lending. It is a violation of racketeering laws in the state. New Jersey and New York prohibit payday lending through criminal usury statutes. The annual interest is restricted to 25-30 percent. Arkansas used to allow payday lending once, but that changed after a ruling in 2008 by the Arkansas Supreme Court that it was a violation of the state’s Check Cashers Act. Since then, the Attorney General has halted all payday lending in the state. Two years later, in 2010, voters stipulated a 17% annual rate cap. The Check Cashers Act was finally repealed in 2011.
There are rate caps on payday lending in many states including Connecticut, Maryland, Arizona, West Virginia, Vermont, Pennsylvania, North Carolina, Massachusetts, and the District of Columbia. Out of them, North Carolina, Arizona, and the District of Columbia have repealed their respective loan authorization laws.
Five states allow loans on checks held for deposit. But the rate is lower than a typical payday loan. In Maine, the cap is at 30 percent. However tiered fees are allowed. Oregon allows a minimum of 1 month term at 36 percent. There is also a loan fee of $10 for each $100 borrowed. In New Hampshire, there is a cap of 36 percent. In Ohio on the other hand, the cap is at 28 percent APR. Voters in Montana have kept this at 36 percent.
The loan term in Colorado should be for a minimum of 6 months for loans on unfunded checks held by a lender. The annual interest here is at 45 percent. There is also a monthly maintenance fee of 7.5 percent, and also a tiered finance charge. Borrowers can repay the loan anytime they want in one lump sum or in installments.
States That Allow Payday Loans
The thirty two states that allow payday lending against a check of the borrower and without any caps are as follows – Alaska, California, Alabama, Delaware, Hawaii, Idaho, Florida, Kansas, Kentucky, Illinois, Indiana, Louisiana, Michigan, Iowa, Missouri, Minnesota, Mississippi, Nebraska, North Dakota, Nevada, New Mexico, South Dakota, South Carolina, Oklahoma, Tennessee, Rhode Island, Wisconsin, Virginia, Washington, Texas, Utah, and Wyoming.
Thank you for visiting our website. Hope we helped you get a loan.
You must log in to post a comment. Log in now.