Did you know that most states have laws regulating your payday
loan? If you’re like most people you’re unaware about
the state laws limiting personal loan practices. Be careful! What
you don’t know about cash advance loan laws can actually
hurt you. You see some lenders that offer payday loans or short-term
personal loans are breaking the law by charging cash advance fees
well over the state limit. By knowing the cash advance laws you
ensure that you’ll pay the fees that you’re supposed
to.
Prior to laws regulating payday loans, people with bad credit or
no credit were getting hit with enormous amounts in fees. Sometimes
as much as 800 or 900 percent annual interest! Thanks to lawmakers,
cash advance or short-term loan lenders are forced to abide by a
certain percentage and are no longer able to charge triple digit
rates to people with bad credit.
State laws regulating payday loans also established guidelines
as to what lenders must disclose. Before short-term personal loan
laws lenders were allowed to hide their fees in lengthy cash advance
loan agreements that were written in unclear language. Now lenders
that offer payday loans are required to provide agreements written
in clear understandable and that disclose fees upfront in bold typeface
print.
All in all there are more than 30 states with regulating payday
loan laws. To find the laws limiting short-term personal loan practices
in your state, just click on the region you live in then pick your
state. You’ll discover what cash advance lenders are supposed
to charge you, and you’ll find out what your rights are as
a consumer.
