Payday Loan Summary by State Part 3
Knowing your state’s laws on payday lending is smart. Even if you are not currently thinking about getting a payday loan you should still understand the laws regarding them. Here are more laws by state.
The state of Maine is one of several that allow the payday lenders to charge any fees or interest rates that the borrower will agree to pay. Currently the laws are rather open and there are no limits set on anything. There are some lawmakers who are considering making changes to the existing laws. It is unknown at this time if the laws will stay the same or if they will be changing within the next few years.
In Maryland lenders must comply with criminal usury and small loan laws. The interest rate cap in this state is less than payday lenders normally charge. There is some speculation by people who do not want payday lenders to be around that they are operating illegally. Those in favor of having payday lenders around point out there are laws that they have to comply with.
Massachusetts has the same laws that Maryland does. The same speculations are made in Massachusetts as the ones that are made in Maryland.
Michigan laws have recently changed. All payday loans must be paid back within thirty one days. The new laws also limit the amount that a borrower can get to six hundred dollars. The law also says that a borrower can have only one loan out at a time.
In Minnesota a borrower can have a loan out for thirty days. Payday lenders may lend out up to three hundred and fifty dollars. For the first fifty dollars lenders only charge five dollars and fifty cents. For amounts ranging from two hundred and fifty dollars to three hundred and fifty dollars the interest is six percent with a five dollar fee.
The laws in Mississippi allow for a borrower to have a loan out for up to thirty days. Lenders are allowed to lend out up to four hundred dollars. Lenders usually charge around eighteen percent in this state.
Missouri has passed laws allowing payday lenders to operate in the state. They are allowed to lend out up to five hundred dollars for a time between fourteen and thirty one days. In this state, lenders cannot charge more than seventy five percent in interest rates.
Montana has laws that say that payday lenders can lend out no less than fifty dollars and no more than three hundred dollars. The law allows these loans to be out for up to thirty one days. The law in this state does not allow the lender to renew, consolidate, or refinance any of these loans.
Nebraska has also passed laws that allow payday lending to take place in their state. These laws say that a borrower can get up to five hundred dollars for up to thirty one days. The lenders in this state usually charge fifteen dollars for every one hundred that is borrowed.
In Nevada there are no laws regulating the amount that a payday lender charges for fees or interest rates, the must have the customer’s consent to pay these fees and interest rates in writing. No lender in this state is allowed to lend someone more than twenty five percent of their current income at the time that the loan is made.
Payday laws change so it is a good idea to keep up on the laws in your state. These are current in their state. Keep up with the laws if you are interested in getting a payday loan.