PaydayAct

Payday advances are great way to solve your short term financial issues. Although, if you are stuck dealing with a lender who is less than reputable, you must be prepared with the knowledge of what your legal rights are. When you choose your lender, it is important to know the following information: before you enter into any loan transaction, you must know your rights; also, research the lender you are thinking about applying with to make sure they are reputable.

RIGHTS

Payday lenders and the loans they issue are bound by federal and state laws. As lenders, they have their set of rights and responsibilities and as a borrower; you are also protected by your rights.

State laws outline the maximum amounts that you can borrow, as well as the repayment schedule allowed. It varies from state to state from a minimum of $500 to $1500. Check your rights per your state, you can easily do a search online and find this information in minutes.

COST OF YOUR LOAN

Before committing to take a loan with a specific lender, the lender must give you all the information regarding the loan. This includes interest rates and/or the loan finance fees. It is very important that you fully understand what the loan will cost you. The costs should also be in your loan agreement or your contract.

LOAN PAYMENT PLANS

Lenders must give you information on their available payment plans and schedules. The information should be available to you during the applications process. Also, you can find this information on the website of the lender, if they have one. Even if a lender has multiple payback options, you should still pay the loan back as soon as you can to prevent more fees.

YOU CANNOT BE THREATENED

When payday loans go unpaid, they may be referred to collection agencies. It is not within the lender’s rights to threaten you with criminal prosecution.

You may be taken to civil court where your wages may take a hit, or a lien may be implemented on your assets to pay for the loan. Some states do not allow collection of court costs.

STATE RIGHTS FOR PAYDAY LOANS

As mentioned earlier, the rights given to payday loan borrowers vary by state.

You can also check the Better Business Bureau to see if there have been any complaints about them. If you are looking at lenders online, make sure you know that they are located in your country.