For all my NJ posters here is the NJ laws on Payday Lending!
Date: Sat, 11/05/2011 - 20:11
New Jersey is one of those sixteen states in the United States of America that have completely banned payday lending. As per New Jersey payday loan laws, it is a criminal offence for lenders to offer extremely high rate short term cash advances to the residents of this state. If you are residing in this state and have a complaint against a specific payday loan company (including those who operate their business from Internet), you can file your complaint with the New Jersey Department of Banking and Insurance. You can fax them at (609) 292-5461, call them at (609) 292-5360, and visit their office at 20 West State St. Trenton NJ 08625. You can contact them even if you just have some queries and want to obtain more detailed information about the payday loan laws applicable in your state.
Small Loan Rate Cap
Consumer Loan Act applies in this state, as per which the interest rates on short-term cash advances or just any form of loan must be agreed to by a contract, but in any case, the rate must not be more than 30% per annum. This maximum ceiling on the annual percentage rate has been imposed by the New Jersey payday loan laws. If a lender offers you a loan and then charges an interest rate higher than 30% per annum, you can not just file a complaint against them but you also have the legal right to file a criminal lawsuit against them and ask for compensation for the resulting humiliation and financial torture.
Cash Cashers Cannot Offer Cash Advances
New Jersey has also prohibited check cashers, even if they are duly licensed to operate their business in this state, from issuing cash advances on a post-dated check. Only banks and other licensed lenders can offer short-term or long-term loans but even they cannot charge more than 30% per annum as interest rates.
What If The Lender Operates The Business From Internet?
New Jersey payday loan laws are applicable to all those lenders who either have their offices in this state or are running their business from Internet only. However, here it is very important for you to understand that online payday loan lenders are often very difficult to locate and it is not at all an easy task to take legal actions against them despite the fact that there are provisions for the same. Internet lenders often try to attract consumers by offering them easy loans and by claiming that the New Jersey laws do not apply to them because they are not based in that state. You are strongly recommended not to borrow loans from them because it can turn to be very risky and expensive. If they are harassing you, you can tell them that you are well aware of your legal rights and that you have the right not to be harassed as per the Fair Debt Collection Practices Act.
If they keep on harassing you, you must file an official complaint against them with the New Jersey Department of Banking and Insurance, which is the regulatory authority in this state to impose New Jersey payday loan laws.
Small Loan Rate Cap
Consumer Loan Act applies in this state, as per which the interest rates on short-term cash advances or just any form of loan must be agreed to by a contract, but in any case, the rate must not be more than 30% per annum. This maximum ceiling on the annual percentage rate has been imposed by the New Jersey payday loan laws. If a lender offers you a loan and then charges an interest rate higher than 30% per annum, you can not just file a complaint against them but you also have the legal right to file a criminal lawsuit against them and ask for compensation for the resulting humiliation and financial torture.
Cash Cashers Cannot Offer Cash Advances
New Jersey has also prohibited check cashers, even if they are duly licensed to operate their business in this state, from issuing cash advances on a post-dated check. Only banks and other licensed lenders can offer short-term or long-term loans but even they cannot charge more than 30% per annum as interest rates.
What If The Lender Operates The Business From Internet?
New Jersey payday loan laws are applicable to all those lenders who either have their offices in this state or are running their business from Internet only. However, here it is very important for you to understand that online payday loan lenders are often very difficult to locate and it is not at all an easy task to take legal actions against them despite the fact that there are provisions for the same. Internet lenders often try to attract consumers by offering them easy loans and by claiming that the New Jersey laws do not apply to them because they are not based in that state. You are strongly recommended not to borrow loans from them because it can turn to be very risky and expensive. If they are harassing you, you can tell them that you are well aware of your legal rights and that you have the right not to be harassed as per the Fair Debt Collection Practices Act.
If they keep on harassing you, you must file an official complaint against them with the New Jersey Department of Banking and Insurance, which is the regulatory authority in this state to impose New Jersey payday loan laws.
Thanks for sharing this information with us. I hope this will he
Thanks for sharing this information with us. I hope this will help all of the forum members.
