Among various types of loans that are available for people going through tough financial times, payday loans are a useful medium for many individuals. Payday loans are easy to obtain as there are very few requirements to get such loans approved. Proof of adequate income is mostly sufficient to get payday loans. Regulation Parameters
Payday Loans Questions
Jun, 9, 2014
Dec, 24, 2013
Consumers can file a payday loan complaint with a newly-established page on the Consumer Financial Protection Bureau’s website. If a borrower has a question or complaint about their loan, they should first contact their lender. If that does not lead to an answer or a solution, borrowers now have a more powerful approach than in the past. Starting last month, the CFPB began accepting payday loan complaints.
Aug, 14, 2013
Due to convenience, ease, risk, and accessibility, prospective borrowers may find it more convenient to get a payday loan online rather than through a store. While most every city has a payday loan store (where they’re legal), that does not mean that they are the best option for prospective borrowers who are in need of quick short-term loans.
May, 10, 2013
To calculate the APR of your payday loan, use the formula ((F/T) x 365)/(the term of the loan in days), where F represents your loan fees and T equals the total amount of the loan. For example, if you receive a total of $255 in credit from a lender for a 14 day payday loan and owe $45 in fees, your calculation would be: ((45/255) x 365)/(14) = (0.17647 x 365)/14 = 64.41156/14 = 4.6008, or 460.08 percent What is an APR?
Apr, 26, 2013
Federal regulators have announced that they are imposing new regulations on direct-deposit advances, a short-term loan service offered by some major banks. Regulators have compared the advances to payday loans, in that both services don’t vet a borrower’s ability to repay a loan, have a very quick turnaround, charge high interest rates, and are difficult to repay for some borrowers.
Apr, 15, 2013
Military members cannot get payday loans because short-term loans are severely restricted by several laws. The laws protect military personnel against usury charges and predatory lending that are often seen in payday loans. But limitations against payday loans have not always been around. A 2006 Department of Defense (DOD) report, commissioned by the U.S. Senate, found that 17 percent of military personnel used payday loans and it hurt military readiness and hindered the morale of troops and their families.
Mar, 4, 2013
A lender does not check a potential borrower’s credit score before approving a new payday loan. Payday loans are small, short-term loans that are due on the borrower’s next payday. The loans are usually repaid via a pre-written check or an automatic bank draft. Payday loans are not structured like secured loans in which an automobile, home, or valuable item can be claimed to repay the debts. Instead, these short-term loans are secured only by a borrower’s bank account number or postdated check.
Feb, 27, 2013
Yes, you can be sued for defaulting on a payday loan. If a payday loan company lends you money then you are legally obligated to repay them. It isn’t free money after all and should be treated like any other form of debt. You must repay it in the end. Of course, should you refuse to repay it or be unable to satisfy the debt, then the lender is within their rights to take you to court over the payday loan. However, this process can be complicated depending on state laws and the manner in which a borrower obtained the payday loan.
Feb, 11, 2013
A payday loan company can contact a borrower’s employer but the company is limited as to the amount of information it can legally reveal. Since a credit check is not required for payday loans, a lender bases the loan amount on a borrower’s monthly income and current employment status. Similar to other security checks, such as on renter’s applications, a payday loan lender is allowed to call a borrower’s employer to verify that the job they claim is legitimate and their monthly income is as described on the payday loan application.
Dec, 18, 2012
There are several ways that prospective borrowers can find out if a potential lender is located within the United States. Some instant loans are available from retail store locations. These companies maintain physical stores in cities that provide check cashing, lending, and even prepaid debit card services. Since these businesses are physical stores, borrowers should have little doubt that they come from the United Statesand that they are operating in accordance with city, state, and federal laws. Instant loans offered online, however, are a whole different story.