A cash loan online is an ideal way to quickly straighten out any financial affairs that are causing you problems. For example, you may have to pay rent or utility bills in the next few days or risk having your electricity cut off or your landlord giving you a final warning. You may even be in danger of paying bank overdraft fees which are greater than a cash loan online repayment. This form of loan goes by many names including payday loan, instant cash loan, cash loan online or check advance loans. All of them are designed to help you deal with a short-term financial problem.
Regulation
There is a lot of hyperbole used to describe the alleged dangers of online cash loans companies. It is suggested that they are illegal but this is simply not true. Instant cash loans are banned in some American states and other countries worldwide but companies that offer such loans don’t practice where it is illegal. In the United States in particular, the process of receiving a cash loan online is strictly regulated. This means that instant cash loan companies have to adhere to the financial regulations of the state they practice in or else they will be prosecuted and banned from the state. Because there is controversy surrounding online cash loans, companies of this nature are better regulated than the banking sector.
Protection
The Truth in Lending Act is what protects the consumer in the United States. It is a federal law which ensures that all instant cash loan companies have to divulge certain information to the consumer before making the loan. For example, they must clearly state the amount of interest that is to be paid prior to making the loan when a repayment date is agreed upon. Although it is irrelevant because online cash loans are so short-term, the lender must disclose the APR. Other information must be provided on the disclosure which is given to the consumer before the agreement is signed. Lenders must also follow the rules for lending to the military which include providing an APR which is no higher than 36%.
Individual State Laws
Of course, you need to carefully read your own state’s rules and regulations pertaining to borrowing a cash loan online. For example, in Nebraska, you’re not allowed borrow more than $500 and the term of the loan cannot exceed 31 days. No company can charge you more than $17.65 interest on a $100 loan over a 14 day period with the maximum APR for that period not allowed to exceed 459%. Also, consumers cannot have more than two loans outstanding at the same time. In Delaware, the maximum loan is also $500 but the maximum term is 60 days. There is no maximum allowed limit for APR or amount of interest to be paid in total over a 14 day period.
When looking for a cash loan online, ensure that you do your research and find an instant cash loan company that adheres to your state rules. If you do, you’ll find that the cash loan they provide will be invaluable.
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