Payday loans in Houston Texas Payday Advance Credit ™ USA
In the past few years the number of unsecured loans provided by most traditional banks has declined considerably. While it might be very challenging to get a personal loan from the bank, people looking for quick financing can go with payday loans. These loans do not have very strict criteria for approval. The manner in which these loans are governed varies from one state to other. The city of Houston, Texas has different payday laws from other states.
One of the most important rules for payday loans is that the lender has to explain all the risks associated with a payday loan to the borrower. The lender also has to clearly explain about the costs involved, the rate of interest and the accumulation of interest overtime. This regulation helps in ensuring that the borrower is aware of the risks and charges involved and is not caught by surprise. One of the Houston ordinances have limited the payday loans amount to 20% of the gross monthly income of the borrower. Loans with single payments cannot be refinanced more than three times, while the instalments loan cannot have more than four instalments. With each instalment the principal owe must decrease by about 25%.
Another law in the State of Texas regarding payday loans is that there is a limit to how much money can be taken out at any time. In some states, the amount of money that is taken out is unlimited. While most lenders do not give out very large loans anyways, in the State of Texas they are not allowed to give out any loans more than $1,800. This law also disallows any borrower from taking out multiple loans, if the total balance of these loans is more than $1,800. While there is a limitation of how much money can be taken out, there is no limit to the amount of interest or fees the payday lender can charge.
Another regulation related to the payday loans is that the lender does not have any criminal rights for a borrower who defaults on payments. In certain states intentionally defaulting on loan is considered to be a criminal act. However in the state of Texas if you default on a loan you cannot be prosecuted in a criminal court. However you can still be taken to a civil court, where the lender could pursue a judgement against you and even force you to bankruptcy.
All the loans must be repaid in full by your next pay date. This includes the entire amount of the loan along with the appropriate interest amount. Loans that are not paid in full can be subjected to penalties and fines. If you are an active member of the US Military you cannot receive a payday loan since the military prohibits its service members from utilising any quick loan services. Texas laws do not cap the charges associated with payday loans in Houston Texas, giving the lenders freedom to fix their own interest rates. You must carefully review the terms and conditions and the interest rates associated with loan before accepting the loan.