subject: Payday Loan Laws-regulations - Take Control Of Your Finances [print this page] When you need a payday loan, make sure that you understand the payday loan laws-regulations. Many states have their own individualized laws-regulations on cash advances and it is important to understand the laws for your specific state before jumping in to a short-term loan that will charge higher fees than the individual state will allow. With new federal regulations, you can have the entire fee information made known to you before you even sign the paperwork. Make sure that you fully read all paperwork and understand everything you agreeing to.
Different areas of the United States have different payday loan laws-regulations. If you live in the Midwest, in a state like Illinois, there are absolutely no laws on payday loans and they can charge outrageous interest rates (521%) to those people who have bad credit. Kansas on the other hand can only offer cash advances of up to $860 and can only charge an interest rate of up to 4% of the loan. If you live in the south in a state like Mississippi, the loan amount cannot exceed $400 and the interest is calculated like a service fee and cannot exceed 18% of the loan amount. However, if you reside in West Virginia, you can get a payday loan of up to $45,000. If the loan is $2000 or less, they can charge you up to 31% interest and if it is above $2001 they can charge up to 27% interest.
The payday loan laws-regulations in the eastern state of Colorado limit loans to $500 and the most a loan business can charge in interest is $75. If you are in Hawaii, the maximum loan amount you can request is $300 and they can charge up to 15% interest during the life of your loan. In the western state, Pennsylvania, you will only be able to get a loan for up to $500 and you will not be charged more than $75 in interest. Also, if you decide you want to cancel your transaction, you can do so by 5pm the next business day.
As you can see, every state has its own payday loans laws-regulations. Make sure you thoroughly check all of the details before agreeing to anything. More often than not, people jump into something without becoming educated about the decision first. All states are different and only you can control your financial future, take time to read between the lines.
by: Warren Stephen
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