Author Box
Articles Categories
All Categories
Articles Resources

State Regulations For All Payday Loan Companies?

June 26, 2012 | Comments: 0 | Views: 197

Although not every state in the U.S. allows for payday lending, those who do have put state regulations in place to protect customers from predatory lenders. If a borrower has a problem with their payday loan or cash advance lender, they can count on having some recourse due to being protected by the Federal Trade Commission as well as the Fair Collections Act. Each state also puts a cap on the amount the lender can loan, how much interest they can charge, and how high their fees can go.

This unfortunately does not hold true for offshore loan companies and tribal-based lenders. Offshore lenders can be anywhere outside the U.S. and therefore are not bound by the same laws as U.S. lenders. They have carte blanche when it comes to fees and interest rates and consumers have no legal protection should something go wrong. Not to mention they can do whatever they please with the borrower's information, often times leaving the consumer to fall victim to identity theft and illegal scams.

The same holds true for tribal-based lending companies. With the benefit of sovereign immunity protecting tribal-based businesses from state regulations, borrowers outside the tribe are not legally protected should something go wrong with their loan. As with offshore companies, these lenders can do what they want when it comes to fees and interest rates. There are no caps and interest rates are much higher.

So with that being said, why would a person choose to take out an online payday loan with an offshore or tribal-based lender instead of a retail or online lender that is located here in the U.S.? Simply put: The amount a consumer can borrow. Typically the applicant can get a higher dollar amount on their loan than what their state allows them to borrow. Often times the desire to get more monetarily trumps the concern for how much they will end up paying for their loan in the long run. This can lead to higher overall loan amounts which may result in a borrower not being able to payback their on their next payday. This could mean potential financial disaster for the borrower.

Getting a payday loan or cash advance is a short-term solution to getting some quick cash for a financial emergency or unforeseen expense. Borrowers should always do their research when looking for a credible lender, keeping in mind that the lender should be licensed and regulated by their lending state.

Spotya is a trusted source for an online payday loan. Visit for more information.

Source: EzineArticles
Was this Helpful ?

Rate this Article

Article Tags:

Payday Loan


Payday Loan Companies


Payday Lenders


Online Payday Lenders


Online Payday Loan

The 3 Month Payday Loans is most suitable options for the people who do not possess assets. There are a variety of loan options for the people who are willing to pledge assets against the cash

By: Cameron white l Finance > Personal Finance l July 09, 2013 lViews: 560

For many people, bankruptcy can make their world fall apart. The apparent loss of reputation coupled with the inability to take financial decisions can deter anyone from thinking clearly. But all is

By: noragwilt l Finance > Bankruptcy Lawyers l November 18, 2012 lViews: 304

If you are availing payday loans with monthly payments, it is easy for you to obtain quick money from online lending companies.By getting the best deals of loan, you can save money in terms of

By: Malen Cheks l Finance > Loans l November 16, 2012 lViews: 289

Loans online have become the popular source of income and people can make smart decision of taking it.Now, don’t go anywhere and sit in your home silently. Such deals would bring you money without

By: Marsh Jone l Finance > Loans l November 13, 2012 lViews: 288

Loans for the unemployed would let you feel comfortable with your unstable conditions due to jobless period.If you compare the rates of a few lenders, you would definitely get the suitable lender to

By: kelse roy l Finance > Loans l November 13, 2012 lViews: 467

By taking cash advance for bad credit, it is easy for you to improve your credit status. This loan is useful to relieve financial stress. This loan is totally free from credit verification and

By: Honard Nork l Finance > Loans l November 09, 2012 lViews: 301

Fast payday loans perfect way to cope up with all your financial problems without getting tensed or depressed. This loans scheme surely brings happy simile in your life once again. Applying online is

By: Daniel Robertl Finance > PayDay Loansl August 06, 2012 lViews: 343

All-in-all, same day loans is a good financial support for those borrowers who need instant cash before they received monthly paycheck.So this is the reason of the popularity of these loans. There

By: Cameron whitel Finance > PayDay Loansl July 30, 2012 lViews: 242

Do payday lenders charge higher interest rates than traditional lenders? Maybe not when taking into consideration the duration of the loan and the amount of time it takes to actually pay off.

By: Melissa Daleyl Finance > PayDay Loansl June 29, 2012 lViews: 219

While instant payday loans are useful for emergency situations, obtaining one can be avoided by aligning your finances. You don't need to get instant loans if you manage your finances well. People do

By: Cedric P Loisellel Finance > PayDay Loansl June 28, 2012 lViews: 222

Approvals on payday loans with bad credit are amongst the most commonly secured loans on the market. In fact, they are much more simply approved that many expect and offer a genuine break to

By: Mary Wisel Finance > PayDay Loansl June 27, 2012 lViews: 185

It can be a difficult situation when you are short of funds. Thankfully for emergencies, there are short term loans available. Payday loans are one common way to get money right away. You can obtain

By: Brad Reganl Finance > PayDay Loansl June 26, 2012 lViews: 176

Do payday lenders charge higher interest rates than traditional lenders? Maybe not when taking into consideration the duration of the loan and the amount of time it takes to actually pay off.

By: Melissa Daleyl Finance > PayDay Loansl June 29, 2012 lViews: 219

Discuss this Article

comments powered by Disqus