Payday lenders give away small, short term loans to clients when they need immediate money in between paychecks. Payday advances are also known as, cash advances and fast cash loans. They can also be done electronically via the internet. This includes the application process, approval and fund deposit.
Choosing a secured and safe payday lender can often be overwhelming. There are plenty of lending firms to choose from today and finding a reputable company is a challenging task. But by sticking to some basic tips, finding a lender can be done in a snap.
Payday Loan Lender’s Interest Rates and Fines
Recently, a lender has been fined up to $90,000 by Oregon legislators for charging interest rates reached more than 2,000 percent. With the surge of the Internet and the increasing demand for this type of loans, the industry is also faced with the growing population of illegal lenders.
The lawmakers in Oregon have already submitted a series of measures to curb current pay check lending. This includes a 36% cap on its interest rates. According to statistics, around 80% of brick and mortar lending companies have already closed their businesses since this move, driving most consumers to relying on the Internet for emergency funds.
A lot of online lenders are not registered to do business in Oregon. These companies are fined as a consequence to their violation. Global Payday Loan LLC, a Utah based lender, (which also does business as Payday-Loan-Yes, Fastcash Advance, CashNet500 and First National Services) was already fined for up to $90,000 for the lack of licensing requirements in Oregon. This fine was charged after the company offered advances to Oregon clients from $100 to $500 through their company site. The site reportedly charged interest rates from 300% up to 2,700% on the amount. Currently, there have been a number of laws passed by other states to protect their people from paying high interest rates and fees for cash advances. It would be wise to check with the state and see if these lenders are licensed in your state.
Find Reputable and Licensed Companies Online
Here are easy tips on how you can find a credible and legitimate lender that won’t charge you sky high interest rates:
- Check their license: Llenders must be fully licensed in your state. Check their license through the BBB or your states department of financial institutions.
- Make sure they have a secure website: Before signing up, find the security seal on their site to make sure that any information from you will not be stolen.
- Read the site’s terms and conditions: Always remember to read the site’s terms and conditions. You should never agree to any type of note, or contract without reading the fine print.
- It pays to ask recommendations for lenders: It will also be helpful to read lender reviews online.