| Payday Loans
Legal? |
Yes |
| Legal Citation: |
D.C. Code Ann. § 26-301 et seq. |
| Terms
of Payday Loans: |
-> Maximum Loan Amount = $1000
-> Loan Term = Maximum 31 days
-> Maximum Finance Charge = 10% of face
amount + fee of $5: $0- $250; $10: $251-$500;
$15: $501- $750; $20:$751-$1000
-> Finance Charge for 14 day $100 Loan
= $16.10
-> APR for 14 day $100 Payday Loan = 419% |
| Limits of Debt: |
-> Maximum # of Outstanding Loans: Not
specified
-> # of Rollovers Allowed: Not specified
-> Repayment Plan :
-> Cooling-Off Period: |
| Debt Collection Limits: |
-> Collection Limits:
-> Criminal Action: Not Allowed
|
| Where to Get Information? |
-> Regulator: D.C. Department of Insurance,
Securities and Banking (Visit
their Website)
Address: 810 First Street, NE, Suite 701
Washington DC 20002
Phone: (202) 727- 8000
Fax: (202) 535-1197
Regulatory Contact: Howard Amer; Director,
Banking Bureau
Important Links
-> Complaints
& Disputes
-> Download
Complaint Form (PDF)
-> Database
of Payday Loans |
i) APR (Annual Percentage Rate):
The Annual Percentage Rate (APR)
is an interest rate that is different from the Finance
Charge. The APR was developed to gauge the "true
cost of borrowing a loan." The finance charge
is a mere interest rate e.g 8% that does not provide
a lot of useful information. However, the APR does.
Here are the components (finance charges) included
in APR:
-> Loan processing fees
-> Underwriting fees
-> Document preparation fees
-> Private mortgage insurance
-> Pre-Paid interest charges: The interest charged
from the date of closing a loan to the end of the
month (when payment is due).
-> Points - Discount & Origination Points
The following items are NOT included
in the Annual Percentage Rate (APR) calculation:
-> Title or abstract fee
-> Appraisal fee
-> Escrow fee
-> Attorney fee
-> Notary fee
-> Document preparation fees
-> Home inspection fees
-> Recording fees
-> Transfer taxes
-> Credit report look up fees
2) Cooling-Off Period
A Cooling-Off Period is when all
loan clients receive a 3 (three) business day cooling-off
period during which clients can change their mind
about the agreement and exit or cancel with only
a specified fee. A business day is any day that
is not a Saturday, Sunday or public holiday.
3) NSF Check (Non-Sufficient Funds)
An NSF check is when a check is
dishonored because the Payor does not have sufficient
funds in his/her bank account.
4) Loan Term
The loan term is the length of
time after which the loan is due. For example, if
the loan term is 30 days, the loan becomes due after
30 days of initial borrowing date. |
