Online Loan Advice
With so many new payday loan lenders establishing businesses in recent years, congress has created laws to prevent any vulnerable customers from being taken advantage of by cash advance loan lenders. These laws are continuing to be revised so that consumers will still have access to non-traditional loans and lenders will still be able to maintain their business.
We are committed to ensuring that you are aware of the most recent and up-to-date information regarding loans online. This section will explore this detailed information and specifics so that you may become acquainted with online loans.
Laws and Regulations Surrounding Payday Loans
The United States government pushed for states to cap the interest rates on payday loans so that consumers would not find themselves unable to pay back the money. Many states however deregulated the caps because of concern surrounding lenders moving out of state and taking jobs and jobs. Although these caps seemed to be beneficial to many consumers, cash advance lenders were including hidden fees that outweighed the benefit of the caps on interest rates. This lead to reform that balanced congress' intervention and the state governments push for deregulation for payday loans.
This new balance of regulation was divided into three categories. Each state falls within one of these categories. The first category ensures that all payday lenders follow the small loan laws within each individual state. These vary with each state but typically there is a cap on interest rates that are not to exceed 36% and although not every lender has implemented this interest rate specifically, we can pair you with a lender that meets your specific needs with no obligation.
In addition, these regulations set the terms of the length of the loans and do not allow for the lender to make revisions. This category forces payday lenders to be fair to their customers by law.
The second category also follows the small loan act of that particular state. Each lender however, can modify their interest rates as long as the borrower gives consent to the amount charged. This allows for lenders to be more flexible but does not allow them to take advantage of vulnerable consumers as they are still adhering to the restrictions of the small loan laws for the state in which they operate.
The third category allows cash advance loans but places certain restrictions on them. The states that follow the criteria of category three place maximum interest amounts for certain loan amounts. A state may only charge up to a certain percentage on the maximum loan amount set by the state. For instance, the state of North Carolina can only charge up to 15% on a maximum loan of $300. These maximums allow the government to regulate how much consumers are being charged for a lending service. This also allows them to regulate how much debt a person can hold with a lending company. These laws protect consumers with both short and long term loans.
Each of the three categories that states fall into help protect borrowers from accruing overwhelming amounts of long term debt. These actions by the government have protected people from acquiring too much debt but still allow for them to take advantage of non-traditional online loans when they are needed.
It is our goal to match you with an online loans that will offer you the cash that you need with terms that are agreeable to you. When you need emergency funds for an unexpected situation, we are here to connect you with an online loan lender that can help you obtain the cash you need.
Note: Online loans are available to you whenever you need immediate cash for emergencies or unexpected expenses. Online loans however are cash advances and only intended for short-term and occasional use. If you find that you need to use a cash advance service often or have on-going budget problems, or have serious financial difficulties, you may need to seek help in other areas. If you need help with credit, budgeting or debt management, please contact a reputable debt management program such as the National Foundation for Credit Counseling at 1-800-388-2227.