State Laws about Payday Loans

Payday loan companies could be found in every city and state in the country and online. At any given day, you can just walk in and apply for a payday loan and expect to have cash in an hour or two. You know that their interest rate is really high but you still need the money and you need it fast and these companies could easily give what you want.

You can pay them in no time at all since you’re sure that you sure that you’ll be receiving your pay on time. You write them a post dated check so that they can just cash it in on your payday.

Of course, if anything bad happens, you can just arrange the payment scheme so that it could be more flexible. Wrong.

Compared to most types of loans, payday loans don’t generally allow arrangements for late payments. Missing one payment is ok since the interest rate is a little bit tolerable for now. But if you fail to pay within a month or two, you’ll find yourself in a lot of trouble and arrangements is not just possible. Unfortunately there are very few states that allow payment arrangements.

The following are the states that allow payment arrangements for payday loans:

• Alabama
  
• Alaska
  
• Florida
  
• Illinois
  
• Michigan
  
• Nevada
  
• Oklahoma
  
• Washington
  

If the payday loan companies in these states will not allow you to make some arrangements, you should contact your state regulator as soon as possible to avoid further trouble.

When you’re in Alabama and Alaska, be sure to make some arrangements with payday loan company first before you contact the state regulator. But never close your savings account that is connected to the account. In this state, the payday loan company may file criminal charges if you close your bank account before your due. Most payday loan companies will give you arrangements as long as you do that before the due date.

Colorado and Wyoming are also two states that allow payday loan companies to file criminal charges if the bank account connected to the loan is closed before the due date. You should really think twice in getting a payday loan in these states since they don’t allow debtors to make some arrangements in payday loans. The only thing you should do is pay them really fast or else your savings and salaries in that account will only go to the payday loan companies.

Payday loans in Mississippi will also get you in trouble with the law if you close your account. But besides from a closed account, the payday loan company may even file you with criminal charges if the check they tried to cash in or deposit bounced. That means even though you didn’t close your savings account, you’ll still be sued by the payday loan company simply because there is no money in your savings account.

Hawaii and Missouri are also states that allow criminal charges to those who closed their account before the due date. Criminal charges are also allowed when you stop the money transfer to the payday loan company. That means you have to pay them or else face criminal charges. There is no help either because the state laws do not force the payday loan companies to allow arrangements. This arrangement is a little bit similar to Arkansas but criminal charges are only possible for those who stop payment and close the account at the same time.

Utah doesn’t allow criminal charges for bounced check but the payday loan company could still sue for treble damages.

As much as possible do not apply for a payday loan in the previously mentioned states. Although there are federal laws that could protect you, the state laws will also be enforced so you’ll have to pay them on time or else face criminal charges.  Please check your state law before using any of the services since state law might have changed. 

Try to avoid going for payday loans and start saving money.  Small tips I had mentioned in my blog will definitely helps you to Be Smart and Save Money by not making Stupid Mistakes.