Click on any of the States
below to learn whether Payday Loans are legal
in that particular state. Each page will also
tell you the related Law or Citation where information
is referenced from. Each page has the following
information:
- Maximum Loan Amount: The maximum
payday loan amount you can take out at any point in time.
- Loan Term: The maximum amount
of time you have to borrow a payday loan, after which full payment
is due.
- Maximum Finance Charge: A cap
on the maximum interest that lenders can charge you.
- Finance Charge for 14 day $100 Loan: This
is the typical interest charge you will pay on a $100 loan borrowed
for 14 days.
- Annual Percentage Rate (APR): See below for explanation.
- Max # of Payday Loans that an individual
can take out, types & amounts of penalties that lenders
can charge if not paid within due date and whether lenders can charge
for "Criminal Action."
Note: Some States still have
Small Loan Rate Caps or Usury Laws. The database
will tell you the small loan rate cap and its
related referenced citation. For example, the
state of West Virginia has a Small Loan Rate
Cap of "31% per year on a loan
of $2,000 or less" and its related
Citation is "Small loan act applies.
W. Va. Code § 46A-4-107 and § 32A-3-1
et seq."
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. |
