New Jersey

New Jersey currently has no laws regulating the amount of fees a payday lender can charge. In addition, New Jersey doesn’t limit terms on loans or the number of times a person can roll over a loan. There are laws however on loan amounts. Under New Jersey law a payday loan lender cannot lend over $2,500 at one time. Also, if a customer defaults on a loan at least three times within a year, a cash advance lender is required to suspend services to that customer for at least 6 months.

Despite the fact there are very little laws regulating fees and terms, New Jersey does set licensing standards. Any business that wishes to provide payday loan services in the state of Virginia must obtain a license. In order to do so, the applicant must meet certain guidelines and follower certain regulations:

• Every payday loan location in New Jersey is required to have a net worth of at least $50,000.
• Each applicant shall pay a biennial license fee of $2000.
• A payday lender in New Jersey has to maintain consumer records for at least 5 years.
• Each payday loan store in New Jersey has to have a photographic record of checks that have been issued to customers.
• Each check must be endorsed with the business name.

In addition to the requirements above, payday loan lenders in New Jersey must have an established record keeping system. The record keeping system should keep on file the date of the transaction, the name of the customer, social security number of the customer, face amount of the check, the date of the check, the names of those presenting the check, the name of the financial institution, the amount of fees charged, and photograph copy of a fully endorsed check.