With so much online and physical increase of payday loans’ presence, in the recent market, consumers are baffled when they need the help of these small loan services.
That’s because, they don’t know which payday loan service to choose, how many of them are authentic, and how many are banned or illegal.
Out of the 50 states of America, there are some that ban payday loans completely, some that ban high-interest payday loan services, and some that has no such legal restrictions on usurious payday loans!
States that ban payday loans completely:
Payday loans, or small cash advance loans, are actually not banned in any state of America.
The fact is however, the strict rules that these states carry, make it very unprofitable business for payday lenders to issue usurious small loan services.
These states include Arizona, Arkansas, Connecticut, Georgia, Maryland, Massachusetts, New Jersey, New York, North Carolina, Pennsylvania, Vermont, Washington DC, and West Virginia.
All these states restrict the environment, as per legal rules and regulation, where payday lenders can charge their desired interest rates.
Usurious loan services are not made favorable to payday loan companies and lenders, in all the above states. It is, therefore, to be aware of the fact, that any loan company offering short-term loans with high interest fees, might just be a scam altogether.
Hence, it might not be a very good idea to even search for payday loans in all these states.
How to search for the best payday loans, in states where payday lending is legalized:
Payday loan companies are infamous for unauthorized lending activities. All the states, except those mentioned above, encourage payday lending.
But, this doesn’t mean all the companies are legal and you should blindly trust all that have shiny small scale presence.
You need to search for payday loan companies, that are having a massive reputation, and are entitled to other forms of loan services also. These companies must have a good physical presence, and better even, if they are having branches throughout the states.
Plus before taking out any loan from these small scale private finance companies, be sure to check the lender’s license, and the loan terms thoroughly.
Even though the loan amounts are small, you should not hesitate to question a company. Moreover, the company should also be open in disclosing all the loan terms in full detail.
Any issues in being open to consumers, calls for a ‘no no’ sign!
Beware of tribal loans:
Tribal lenders are marked as illegal all over the US. They have their own laws and they don’t fall under the US Federal Government.
These tribal lenders, as per the law cannot issue such high-interest loans to U.S. citizens. You need to be aware of these facts, and avoid payday lenders at any cost.
If required, you can get help from your own family members, or in dire consequences do cash advance on credit cards, but don’t ever rely on tribal payday lenders.
Hence, you have by now understood, that it is definitely not a good choice to get help of payday loans.
Even if you are taking out one, then do follow the lines stated in this post.