Payday loans Columbus Ohio - Payday Advance Credit ™ USA
Are you in need of quick cash? Are you considering payday loans as your last resort to get out of the fix? Although these loan types are very heavily advertised it is very important that you educate yourself about the rules and regulations pertaining to these loans. If you miss out on reading the fine print these loans may end up costing you an enormous amount of money. So it is better that you make yourself familiar with what the lender can and cannot do when it comes to payday loans.
Majority of the states in the United States have laws in place in order to safeguard the American Debtors from the predatory lending practices of the payday lenders. Ohio is among the few states that have handed down its regulations for the payday loans. The following article provides the borrower with an overview of the regulations applicable in the state of Ohio.
Ohio uses to be a payday lender friendly state, but in 2008 the rules were changed to prevent abusive practices like charging extremely high rates for missed payments and rolling over of payday advances. Under Ohio’s new STLA or Short Term Loan Act, the lenders must give the borrowers with the option of extending their loans up to 60 days, and the lenders cannot charge any additional fee for the same.
Payday loans in Ohio also has a limit on the amount that a payday lender can offer to the consumer. Lenders are not allowed to issue any payday advances that are more than $500. Additionally, they interest on the payday loans has been limited to 28% and the lenders cannot charge more. Many payday lenders might charge interest rates as high as 300%, this is not in accordance with the STLA and must be reported.
A vast majority of customers were earlier entrapped into a vicious debt cycle. Such occurrences were partially due to the limited time that the borrowers had for repayment of their loans. Most of the payday advances were usually payable within 2 weeks from the date of approval of loan. According to the new laws the lenders must provide the borrowers with a minimum of 31 days for repayment of payday advance. Furthermore, if a borrower misses a payment they only have to pay a nonsufficient funds charge of $20. In order to offer loans in the state of Ohio the payday lenders are required to obtain a license. Also they must be physically present in the state in order to offer advances to the borrowers. This helps to ensure that the lenders would play fair while issuing money to the borrower.
A written agreement must be created by the payday lender for issuing a payday loan. This agreement must be made in an easy to understand format and highlight all the important information. The lender must clearly state in the agreement that the interest rates offered by them are higher than that offered by other loan issuing parties. They must also mention the appropriate fee, due dates, charges and other relevant and important information.