Payday loan help for Indiana people
IC 24-4.5-7-111
Sec. 111. "Lender" means a person licensed by the department of financial institutions under this chapter to engage in small loans.
Top Queries
- How do I know if a lender is licensed in Indiana or not?
- What are the other facts lenders should be obliged to?
- What if the check returns, can they bring criminal charges against me?
- Where to complaint if I find them doing illegal practices?
How do I know if a lender is licensed in Indiana or not?
Browse the database of licensed lenders on the website of the Department of Financial Institutes of Indiana here.
What are the other facts lenders should be obliged to?
A lender may offer maximum $500 or 15% of the gross monthly income of the consumer, whichever is less. Indiana suggests certain slabs against fees:
- 15% for first $250 of the total loan amount
- 13% for $251 to $400 of the total loan amount
- 10% for $401 to $500 of the total loan amount
Minimum loan term is 14 days; lenders are not allowed to offer new loan to a consumers within 7 days after 5th consecutive small loan is paid in full. After the 5th consecutive small loan, the lender should make the loan a simple interest loan with installment offers where simple interest loan code is applied.
Lenders cannot renew any loan, a subsequent loan once previous one is paid in full may not be considered as renewal.
What if the check returns, can they bring criminal charges against me?
No, the lender cannot even threaten you of criminal prosecution; they may charge $20 NSF Fees one time against the same check/ACH debit regardless how many times it has been deposited and returned.
Where to complaint if I find them doing illegal practices?
All queries and complaints should be forwarded to the Indiana Department of Financial Institute and know how to file a complaint with them.
