The state of Washington has some clear regulations when it comes to online payday loans and “brick and mortar” locations. For store locations, a customer would write a check which is then held until the end of the loan period. When it is time to pay, the customer can use that check or bring in money to pay off the loan. An online payday loan does not hold a check, but will have direct access to debit a bank account.
The state of Washington has clear effective rules which are enforced for their residents. If you are a resident of Washington or a lender wanting to loan to a Washington resident it is wise to understand the regulations for the state.
- The amount borrowed may be up to $700 or 30% of your income, whichever is less.
- Borrowers information will be stored in a state-wide database which will be accessible to all payday and online payday loan lenders.
- Borrower’s may only take out 8 payday loans per year or 12 month period.
- If the borrower cannot repay the loan when it is due, you may request and installment plan.
- While a borrower is paying off an installment plan, no other online payday loans or payday loans may be taken out.
- Harassment or intimidation of lenders is not allowed when the loan is being collected upon. File a complaint with the Department of Financial Institutions.
There are maximum loan amounts and length of loan terms which must be adhered to. The maximum loan amount is $700, maximum loan term is 45 days and the maximum fee is 15% for the first $500 and 10% on the remaining amount over $500.
All loans must be processed by a licensed payday lender whether it is a store location or found on the internet. A borrower can check with the state of Washington to verify the license of a lender.
Washington residents have rights in reference to online payday loan and payday loan lenders.
- Any loan which was obtained by a non-licensed lender may not be collected upon nor pursue action against the borrower.
- A borrower has the right to change their mind about the loan within 24 hours.
- A borrower has a right to know about all costs involved and the right to a payment plan.
- Lenders may not threaten criminal prosecution as a way to get repaid.
- A lender may not lend a new payday loan to repay an old one by the same or affiliated lender.
- Outlined information about finance charges and annual percentage rate must be disclosed to the borrower.
Apply this checklist before acquiring an online payday loan and payday loan.
- Verify that the lender you are in touch with is licensed.
- Have you exhausted all other money options?
- Do some comparison shopping to find a trusted lender with the competitive fees.
- Will your next paycheck cover the pay off price?
- Try your best to only borrow from one lender at a time.
- Keep track of your scheduled payoff date.
If you find yourself deep in debt, know that an online payday loan or payday loan does not solve debt problems. They are an option for quick cash to solve an emergency cost issue. Spotya.com strives to that trusted source of cash with some of the competitive fees in the industry.
