Fast Payday Advance - Know Your Rights
A payday loan can offer a quick fix to a short term financial
emergency. However, you want to be sure that you don't get taken
in by a shady lender. So know your legal rights before you sign
any paperwork.
Your Rights
Payday loan lenders must abide by both federal and state laws.
State laws will dictate amounts you can borrow and your
repayment period. For example, Montana limits cash advances to
$300, while Illinois sets caps at $1000. Regardless of where you
live, you can expect some basic protection under the law.
Know The Costs Involved
Before you sign for a cash advance, you have the right to know
the cost involved. This includes both the APR and loan finance
fees. Legitimate lenders will post this information on their
website or send it when you request more information. You should
also receive this information in a loan agreement.
Know The Payment Plan
You also have the right to know what the payment plan is. This
should be stated at the beginning of your application process.
However, you can often find this information in the FAQ section
of a payday loan lender's website. Ideally you should pay back
the loan as soon as possible to avoid paying costly late fees.
No Threats
Payday lenders are not to threaten you with criminal prosecution
to collect late loans. You may be hauled into civil court where
your wages might be garnished or a lien can be placed against
your assets to pay for the loan and court costs. Some states
don't allow for collection of court costs.
State Rights
Some states extend more rights to you as a borrower. For
instance, in Washington, you can change your mind and cancel
your payday loan within one day. However, with electronic money
transfers, it is better to take a serious look at your decision
before you submit the application. To understand your own
state's payday loan laws, you can find information through the
department that handles financing issues.
Before you commit to a payday loan lender, research the company.
Request information on their rates and payment plans. Compare
this information with several companies to find the best deal.