Some tips on Cash Advance loans.
Date: Tue, 07/04/2006 - 14:24
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When you say the customer can't keep more than two outstanding c
When you say the customer can't keep more than two outstanding checks to any company what do you mean? Are you saying that a customer can't have more than two loans at a time with one company? Most of the storefront ones that I have dealt with would only let the customer have one loan at a time.
It depends upon the state laws if you can have more than one loa
It depends upon the state laws if you can have more than one loan in multiples of 100 from the same company. The maximum amount permissible is $500. Then the law applies about not to keep more than 2 checks outstanding with the company.
While dealing with your storefront lenders, did you take $500 one time or a lower amount?
i've seen couples go in and write checks each in their name and
i've seen couples go in and write checks each in their name and get loans maybe it means that too.
In Ohio, you are only allowed one loan at a time. There are no
In Ohio, you are only allowed one loan at a time. There are no rollovers either. It's good to learn your state laws regarding payday lenders.
Here in California, the max is 300 with no rollovers
Here in California, the max is 300 with no rollovers
In Iowa the limit is $500 with no rollovers - so how do some of
In Iowa the limit is $500 with no rollovers - so how do some of the internet companies loan up to $1800??? If only the followed the laws of our states we wouldn't have been in this mess but on the bright side we wouldn't all have met and made the great friends we have either, would we?
anthony, I am sorry but those are some really broad generalizati
anthony, I am sorry but those are some really broad generalizations to be posting because there are multiple exceptions to everyone of those tips. I have personally encountered so many people who take a piece of misinformation such as what you have posted as the set in stone truth, which is sad because so many are not willing to take the time to go to google and look for their state's legislative website and seek the truth for themselves.
I mean you no disrespect personally, but there are a lot of people who come here each and every day looking for answers and a lot of times we never see these people because they never register. They are lost in debt, confused, and they need solid factual law, not sweeping generalization, which if left unresearched could seriously worsen an already dire situation.
I am going to step down off my lil soap box now. Peace.
Quote:The maximum amount permissible is $500. Then the law appli
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The maximum amount permissible is $500. Then the law applies about not to keep more than 2 checks outstanding with the company. |
Michigan allows a max of $600.00 and there is no stipulation in the law as to how many checks a store can require on one loan. Many of them will require 4 checks. They will divide the 600+the fees by 4 and the borrower will write out 4 checks for one loan! This way if all 4 of these checks bounce the borrower pays 4 nsf fees from the bank AND 4 $25.00 fees from the lender.
Quote:As per the usual state laws, the fees of the cash advance
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As per the usual state laws, the fees of the cash advance companies are capped at 15% or $30, which ever is less. |
Utah and Wisconsin have no cap on interest fees
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The company cannot advance more than $500 to a customer from all their combined cash advance outlets. |
Washington allows $700 and MI allows $600.00
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The check cannot be held for more than 31 days. |
Washington has a max of 45 days.
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The customer cannot keep more than 2 checks outstanding to any cash advance company. |
MI has no limit.
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It is necessary for a cash advance company to provide written explanation of the transaction in clear, understandable language. The date when the check will be deposited must be clearly mentioned. |
This one I can buy.
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The cash advance company must not do "Flipping" or give customer more time to pay the loan in exchange for another fee. It is a prohibited act. |
Missouri allows 6 "flips".
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Any company that violates the law will be fined up to $1,000 for each transaction and for each day a violation continues. The companies doing the violations can be forced to refund the excessive charges. If you are aware of any company doing the violations, contact the Dept of Financial Institutions for review. |
If you are a Texan good luck finding the Department of Financial Institutions. You will have better luck with the Texas Banking Commission. Every state has different penalties. Some will only suspend or revoke a license, and others will charge as much as 10k, and some have stipulations for jail time.
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Do not confuse cash advance loan companies with the "Title Pawn" companies. The above rules are applicable to the cash advance loan companies only. |
Pawn company laws are way too wierd and twisted to even go into.
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Always read the contract thoroughly and understand the terms and conditions before signing it. |
This is the best tip here! Especially since every state has different laws....
Or maybe the best tip is to STAY AWAY FROM PAYDAY LOANS!!
Or maybe the best tip is to STAY AWAY FROM PAYDAY LOANS!!
YAY! The laws differ in each state and everyone should check the
YAY! The laws differ in each state and everyone should check them out first. Polly, do you think the topic done by Anthony is less important as it gives out general information and nothing specific? I guess he has compiled the points together to alert the people about the consequences. No offense, Anthony! You need to check out this topic when you return back.
