PayCheck Loan - New Rules For Lenders
Up until now, online lenders allowed almost anyone over the age of 18, who has a job to apply for a paycheck loan. As long as they had a checking account, and earned over $1000 per month, they would receive a cash loan quick, usually within the same day. Loan companies provide online cash loans overnight with repayment terms that range from 4 to 32 days, but most often the loan must be repaid with the next paycheck. Loans can be used to pay off some or all of the current bills that cannot wait until payday. However, there may be some changes ahead.
All online cash loan companies must be licensed in each state in which they operate as precaution against unscrupulous business practices. Consumer protection is paramount among elected officials. Each State's governing body sets their own rules that vary from jurisdiction to jurisdiction. For example, payday cash advances, or short-term cash loans as they are often called, range from a low of $250 to $1000, and in some states even more. Many states require a physical presence within its boundary in order to allow a company to offer payday loan services. Some states don't allow banks to use their charters for storefront payday loan companies, which in the past, was a common occurrence.
Some states are more friendly to individuals who need a short-term cash loan. They make it difficult for paycheck loan companies to charge high fees. Other states ban or limit rollovers, or prohibit lenders from offering a customer more than one paycheck loan at a time, while still others do not allow options for refinancing or loan consolidations.
Many state legislators are now considering additional rules to tighten up their particular regulations in order to conform with their neighboring states that may have more consumer friendly rules. Iowa is just one such example of a state that recently made some adjustments to it's lending regulations.
Most companies put their best foot forward to attract new business. They recognize that their best customers are repeat clients. The convenience of getting a cash loan quick with just an online cash loan application is worth the higher interest rate, particularly when compared to the NSF charges for bouncing a check. Since each state has a different set of rules, almost every company operating within that jurisdiction will have current and pending regulations at the top of their agendas.
In order to relieve the stress of dealing with overdue bills and late banking charges, searching out which companies offer the most current information is perhaps the safest way to protect yourself when using a paycheck loan online.