Many lenders that offer payday loans and installment loans to California residents are illegal. If you have received one or more of these loans in the past or are thinking about getting one, you should contact this office. Payday loans have a repayment period of no more than 31 days in the state, and there are no reinvestments or extension fees. You can apply for an expanded repayment plan, but lenders don't have to give you one.
Consumer loans, also known as installment loans, are similar to payday loans in that they are usually smaller personal loans. Banks are generally not subject to interest rate limits, and in bank rental plans, the payday lender transfers the loan briefly to a bank that has little to do with the loan. The payday lending industry is problematic in many ways, but the most important is the enormous cost of borrowing. The House Financial Services Committee also introduced a federal bill in May that, among other things, would limit the APR rate on payday loans nationwide to 36%, approximately double the current APR for credit cards.
When a loan is not fulfilled, it is sent to a debt collection agency whose job is to contact the borrower and receive the unpaid funds. DebThammer offers content, calculators, tips and repayment programs for the 12 million Americans struggling with payday loan debt. California has a rate limit that seems like it should be low enough at first glance, but a financial charge equal to 15% of the nominal amount of the payday loan check is much higher than the 15% APR. Call the lender and explain that you want to cancel the loan agreement, repudiate the item you financed (a car or a house), and be exempt from any future obligations.
Consumer advocates claim that limiting payday loan rates will not significantly affect consumers' ability to obtain cash. There are clear limitations on allowable principal amounts and financial charges, which determine the cost of your loan. Even so, returning money you don't really need could save you hundreds of dollars in interest over the life of the loan. Even if you have bad or bad credit, you can apply for a quick loan with Advance America online and get your money approved within 24 hours.
If you're already struggling to pay your bills, payday loans are more likely to make things worse than help you. Unless otherwise provided by law, borrowers under any installment loan are entitled to prepay all or part of the loan in installments, together with accrued interest, at any time.