Several States Set Caps On Payday Loan Fees

Several States Set Caps on​ Payday Loan Fees
Several states have set caps on​ payday loan fees and that’s good news for people who need this type of​ short term financial assistance .​
These caps limit the​ amounts that payday loan originators can charge for such loans,​ also known as​ direct deposit cash advances .​
Though several states have set caps on​ payday loan fees,​ many have not taken this steps .​
Here are a​ few reasons why you​ should care.
The way it​ used to​ be
Before states began setting caps on​ payday loan fees,​ the​ fees being charged by a​ small minority of​ lenders were excessive .​
Some people who needed a​ loan and did not bother to​ look for a​ better deal from another lender agreed to​ the​ high fees .​
Occasionally,​ they found they were deeper in​ debt than they needed to​ be as​ a​ result.
One thing that’s important to​ understand is​ that even though several states set caps on​ payday loan fees,​ only lenders that have completed the​ steps required to​ register and become licensed to​ do business in​ such states have committed to​ abide by the​ payday loan fee caps .​
Companies can still conduct business in​ a​ state that has set caps on​ payday loan fees even though they’re not licensed and registered in​ that state .​
Borrowers are advised to​ avoid these firms since the​ level of​ consumer protection afforded by them is​ unknown.
Choose your payday loans company wisely
If you’re considering applying for a​ payday loan,​ don’t patronize the​ unregistered businesses but look for those that are licensed to​ operate in​ your state .​
If the​ company has taken the​ time,​ effort,​ and expense to​ register to​ do business in​ a​ particular state and,​ in​ doing so,​ agree to​ abide by that state’s laws governing payday loans,​ there’s a​ good chance you’ll be treat fairly and honorably by that company.
Whether you​ pay attention to​ the​ payday loan company’s licensing and registration in​ your state,​ it​ is​ critical that you​ be sure that you​ fully understand the​ terms of​ the​ payday loan before you​ agree to​ it .​
If you​ have questions,​ ask .​
That’s the​ only way that you​ can protect yourself against being charged interest rates and fees that you​ cannot afford and perhaps finding that you​ have put yourself in​ a​ bigger financial predicament than you​ were before.
Another reason why you​ should care that several states have set caps on​ payday loans is​ because you’ll have that state’s government on​ your side should you​ need it .​
It’s unlikely that you’ll encounter a​ problem with fees on​ your payday loan,​ but,​ if​ you​ do,​ you’ll want help in​ dealing with the​ situation .​
With the​ state on​ your side,​ you’ll be able to​ make a​ better case against what you​ feel may have been unfair business practices.
States set caps on​ payday loans fees to​ protect consumers,​ not payday loan business owners .​
These states also want to​ protect consumers against becoming victims of​ fraudulent lending and similar abuses .​
Contact your state’s Department of​ Banking if​ you​ feel that you​ have been such a​ victim.
Several States Set Caps On Payday Loan Fees Several States Set Caps On Payday Loan Fees Reviewed by Henda Yesti on April 29, 2018 Rating: 5

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