Posts Tagged ‘payday loan laws’

State Payday Loan Laws

Written by David Schmidt. Posted in Payday Loan Laws

payday loan laws by state

Find the latest laws regarding payday loans right here.

Like many laws in the United States of America, payday loan laws vary from state to state. Each state passes regulations and bills that help to regulate the payday loan market in a way that is beneficial to them. Some states have lenient restrictions on payday loan laws in order to encourage free market forces to work, while others prefer to rein in predatory lending with more oversight. Knowing the state payday loan laws where you life is an important way to protect yourself from falling victim to predatory lending or debt that might make your life unpleasant. Below we will offer a few tips that will help you to research state payday loan laws and links to information on your state.

General State Payday Loan Laws

There are a number of state regulations that have implications for how payday lenders work in each state, but there are a few similarities you should be aware of. Most states have a minimum and maximum level for the term of the loan. Some states offer a minimum of 5 days while others offer 10, but these rules will change the way you do business with payday lenders based on your state. Another indicator you should look for is the minimum and maximum amount that a lender can give. In some cases the payday loan lender can only give $500 to a borrower, while in other cases the laws at set at a percentage of the gross monthly income of the borrower. Each state has a different regulation. In fact, some states ban payday loans altogether.

Fees and finance charges are another commonly regulated aspect of payday loans. In order to prevent incredibly high interest rates, many states set an upper cap on the amount that payday lending companies can charge. Although lobbying in each state has made it possible to still extract over 400% ARP, this is still an upper limit that could be much worse if the free market could continue.

Licensing and Liabilities for Payday Lenders

Consumers also have to make sure that they realize which online payday loan lenders are licensed and registered with the state that they reside. Each state usually only has a few online payday lenders (with a few exceptions), so it is imperative that you determine whether or not an online company is acting illegally by lending you money. In many cases this can lead to extremely high interest rates that land you in thousands of dollars of debt for only a small loan. Do not fall victim to these types of shady practices. Instead, make sure all of the laws are being followed with your storefront or online payday lenders.

As each state is different, we have compiled a list for you to consult every time you have questions about payday lending laws in your state. Hopefully it will provide useful for you to better understand your rights and protect yourself from predatory lending that has already hurt so many individuals and families.

Alabama Payday Loan Laws

California Payday Loan Laws

Colorado Payday Loan Laws

Florida Payday Loan Laws

Illinois Payday Loan Laws

Indiana Payday Loan Laws

Massachusetts Payday Loan Laws

Nevada Payday Loan Laws

New York Payday Loan Laws

North Carolina Payday Loan Laws

Ohio Payday Loan Laws

Oklahoma Payday Loan Laws

Oregon Payday Loan Laws

Pennsylvania Payday Loan Laws

South Carolina Payday Loan Laws

Tennessee Payday Loan Laws

Texas Payday Loan Laws

Utah Payday Loan Laws

Virginia Payday Loan Laws

Can a Payday Lender Garnish My Wages?

Written by David Schmidt. Posted in Payday Loan Laws

Well, according to the FTC the answer is no. There are two stages to this issue. First a lender must be licensed in the state they are lending you money in and if they are licensed they must file a civil suit before a judgement can be entered and a garnishment ordered. Many lenders are not licensed and continuously by pass due process by sending a garnishment to your employer without a court order. The FTC states this is not legal.  The FTC filed suit against defendants who are named Eastbrook LLC, also doing business as Ecash and GeteCash; LoanPointe LLC; Joe S. Strom; Benjamin J. Lonsdale; James C. Endicott; and Mark S. Lofgren.

The FTC claimed that these payday loan companies illegally tried to garnish borrowers’ wages. They did so by offering loans of up to $1,000 to be repaid from a borrower’s upcoming paycheck. They require online loan applicants to check a box on their agreement, indicating their clients agree with loan terms.

These terms included an inconspicuous statement consumers often don’t see or don’t read, which states that their wages will be garnished to cover delinquent loan payments. The statement allegedly attempts to circumvent federal requirements, including a debtor’s right to revoke a garnishment agreement.

The FTC alleges that, in carrying out their scheme, the lenders violated the FTC Act, the Fair Debt Collection Practices Act, and the Credit Practices Rule. U.S. law allows federal agencies to require employers to garnish employees’ wages without a court order when the employees owe the government money only. But a payday lender is not a government agency must take action in a court of law and get a judgement before they can proceed with any wage garnishment.  You can read more about the FTC Suit here  These loans must be paid back and our proven program will help you. Just fill out the form to the right for a no obiligation quote. You have nothing to lose and everything to gain by getting these payday lenders off your back.

Avoiding Payday Loan Debt

Written by David Schmidt. Posted in Payday Loan Debt

We often advocate that our customers consolidate payday loan debt and begin the long arduous process of becoming debt free. But what do we do when we are finally finished paying off that debt? How can we make sure we do not fall into the same habits and mistakes that we made before? These are hard questions to answer, but we hope to offer a bit of guidance. Payday loan consolidation is difficult enough, but making your way back into the debt free world can be a challenge.

Know Payday Loan Laws

Knowledge is power when you are facing predatory money lenders. If you make sure to research the laws that protect you and your family, then you can avoid some of the pitfalls that previously plagued you. Many laws in your region may actually work in favor of the money lenders simply because they have a much larger lobbying presence than you do. If you are not aware of your rights and the legal loopholes that they can exploit, then you will find yourself back into debt and struggling to consolidate once more. Going through payday loan debt once is enough – twice is too much!

Keep Track of Your Finances

In some cases the only reason payday loan debt accumulates is because you lack the understanding of your own finances. We have all been there. Every month it seems like plenty of money is entering the bank account, but somehow it never seems to be adequate enough.

In order to rectify the situation you must take a look at credit card statements, bank account information, and your bills in order to determine where the money is being siphoned. Perhaps you recognize that your kids borrow too much money for movies and snacks. Maybe your night out with the boys is costing too much. The only way to get your finances on track is to be knowledgeable about where money is coming and going.

Tightening the Belt to Avoid Payday Loan Debt

Once you determine where the debt is coming from, you can eradicate it with a few steps. It isn’t hard to determine where you can save money when the facts are staring at you in the face. After you determine how to save money and maintain a surplus of money you can avoid payday loan debt completely.

For many people, debt collects in numerous ways. As evidenced by the recent financial meltdown, many unqualified people “owned” their homes. In reality, these people paid expensive mortgages every month, which eradicated much of their monthly income. Without money to spend on food and other family items, families increasingly turned to predatory payday loan lenders. It may be hard to stomach, but rental properties will help you avoid this. Find a property that you can rent for well below your monthly earnings. Live within your means for a while and you will not get caught in the cycle of debt.

Follow these simple steps and you will hopefully have a much easier time avoiding payday loan debt the second time. You’ve experienced it once and there is no reason to do it again!

Use some of these great tips from Jerrie Guthrey to remain debt free:

Pennsylvania Payday Loan Laws

Written by David Schmidt. Posted in Payday Loan Laws

Pennsylvania payday loan laws are simple, payday loans are not allowed in the State of Pennsylvania. (The Check Cashing Licensing Act of 1998 prohibits check cashing agencies from issuing payday loans) But many online lenders try to find legal loopholes around this ban on payday loans.Pennsylvania Payday Loan Laws

Pennsylvania law does allow small loans and the interest rate cap in PA is 26%, but most payday lenders rely on their partnerships with their  federally chartered, out of state banks and claim they are exempt from this law or they align themselves with Indian tribes which operates under their own set of laws. Unfortunately, most payday lenders charge well above 400% APR. We have seen some above 1000%. Most payday lenders know the payday loan laws in PA and that they aren’t supposed to issue these types loans to PA residents but do so anyways. They feel that since most people aren’t aware of the payday loan laws they cant get away with charging high interest and fees. But nonetheless check cashing agencies are prohibited from issuing cash advances based on the basis of a post dated check.

If you have borrowed money and are a resident of PA the debt should be paid back and we can help. Also note, owing a payday lender is not a crime it is a civil matter. We have been hearing a lot of complaints from consumers who come to us stating that payday lenders or over zealous debt collectors are threatening people with jail. It is against the law for a bill collector to make such statements and your debt cannot be discussed with any one else other than your spouse, you and your attorney. Payday loan laws in Pennsylvania should be discussed soon in the states legislature to combat rogue internet lenders operating illegally.

Even though Pennsylvania payday loan laws are clear, if you have borrowed money from payday lenders generally and morally you are obligated to pay it back nothing more. That is where we have helped hundreds of people get these loans and lenders taken care of. And remember you cannot be arrested for owing a debt. Fill out the form to the right to see how much we can save you.

 

Indiana Payday Loan Laws

Written by David Schmidt. Posted in Payday Loan Laws

Indiana Payday Loan Laws:

The state of Indiana has specific laws which pertain to Payday Loans. They are as follows:

Legal Status: Legal (storefront)

Citation:  Ind. Code Ann. 24-4-4.5-7-101 et seq.

Standard Loan Terms Maximum Loan Amount: $550 (not to exceed 20% of borrower’s monthly gross income)

Loan Term: Min: 14 days Maximum Finance Rate and Fees: 15%: $0-$250; 13%: $251-$400; 10%: $401-$500

Finance Charge for 14-day $100 loan: $15 APR for 14-day $100 loan: 390%

Debt Limits: Maximum Number of Outstanding Loans at One Time: One per lender; Two total

Rollovers Permitted: None (cannot renew, repay, refinance or consolidate) Cooling-off Period: 7 days after 6 consecutive loans

Repayment Plans available: After 3 consecutive loans, payday lender must offer an extended payment plan of at least four equal installments at no additional charge.

Collection Limits: Collection Fees that are charged: One $20 NSF fee;

Complaints or to get Information Indian Regulator: Indiana Department of Financial Institutions 30 South Meridian Street, Suite 300 Indianapolis IN 46204 Phone:  (800)382-4880

Internet lenders must be licensed in the state of Indiana to lend money to Indiana residents.

As you can see the rates for loans in Indiana are quite high. Although these loans seem quite attractive if you need fast cash its advisable to be very careful not to overextend yourself by getting too many. If you are drowning in payday loan debt we can help!

Another important note is a payday lender cannot threaten you with a “criminal” action to collect on a payday loan debt.

Texas Payday Loan Laws A Simple Breakdown

Written by David Schmidt. Posted in Payday Loan Laws

In the state of Texas Payday Loans Laws are clear and payday lenders are considered legal, but the lenders have certain limits on interest and amounts they can lend at a single time.     Texas payday loan laws

•Term of Loan: 7 – 31 days

•Maximum Rate of Finance and Fees: 48% rate of interest (annually) plus $10 per loan

•Finance Charge on $100 loan for a 14 day period: – $11.87

•APR for $100 loan for a 14 day period: 309%

Texas Payday Loan Laws For Military Personnel

S.B. 1479 protects military members and their families from certain actions in regards to payday lenders, and mandates payday lenders to make special disclosures to military borrowers.

The laws in Texas also require all internet lenders to be licensed. If they are indeed licensed in the state they must abide by Texas state laws.

Texas does allow companies that are Credit Service Organizations (CSO) to lend money to its residents though and are not subject to the laws set forth above.

A Credit Service Organization is defined as:

(a) A credit services organization is a person who, with respect to the extension of credit by others and in return for the payment of money or other valuable consideration, provides, or represents that the person

can or will provide, any of the following services:

(1) Improving a buyer’s credit record, history or rating;

(2) Obtaining an extension of credit for a buyer; or

(3) Providing advice or assistance to a buyer with regard to paragraph (1) or (2) of this subsection.

How do TX Payday Loan Laws Pertain To You?

If you would like more information on how these laws work and how they pertain to your situation please fill out the form to the right and we will rush you a free quote. We are the premier payday loans consolidation in Texas.

North Carolina Payday Loan Laws

Written by David Schmidt. Posted in Payday Loan Laws

Up until 2001, the practice of issuing payday loans was completely legal. But North Carolina state government decided to rule against the legislation allowing it continue with the help of Attorney General Roy Cooper.

North Carolina, now has specific laws regarding usuary or small-loan rate caps that would make payday lending illegal under the rates usually charged with these loans. Subsequently, it is now prohibited.

According the State Attorney’s Generals office they don’t not consider a payday loan debt a legal and enforceable debt. Although when the money was borrowed it should be paid back but lenders are limited in their course of action.

The act of payday lending via internet though exists since regulation is very uneven and payday lenders are often able to get around the NC state laws by offering loans over the Internet (Still Prohibited), or if the lenders are using one of the alternative business structures: cash rebates, or CSO “Credit Services Organization” method.

If the lender is offering small loans using the above allowable methods the interest rate cap on loans 36% per annum.

Since the money was borrowed it should be paid back but nothing more. These lenders are very agressive in collecting such as calling your employer, references and you. We have helped hundreds of North Carolina residents get out of these loans so we can absolutely help you as well. Please fill out the form here on our site for a free quote or call us directly at 877-734-6700

Please feel free to contact us if you have any questions or need any help whatsoever.

Lastly, if the payday lender or debt collector is harassing you, threatening to garnish your wages or threatens you with going to jail you can file a complaint and can do so by going to http://ncdoj.gov/Consumer/2-2-12-File-a-Complaint.aspx

GET YOUR FREE CONSULTATION NOW!

Payday Loan Help

We Deal with the Payday Lenders For You And Eliminate The High Interest and Fees!

Get a Free Quote Below or Call Us Now at 877-734-6700