There are two states that have payday loan laws that are very restrictive. Laws concerning cash advance loans are here to protect us from getting taken advantage of and paying thousands of dollars in interest. These laws were made up concerning interest rate, time of the loan allowed, how many allowed loans allowed out at a time, amount of loan, etc. While it isn’t meant to be restrictive on those who need money, it can seem that way.
Ohio
- Maximum Loan Amount Allowed $500
- Term – 31 Days
- Maximum Finance Rate and Fees Allowed 28%
- $100 dollar loan for 14 days = $1.08 fee
- APR of 28% for a 14 day loan
- Only 1 loan allowed at a time, and only 4 per year with no rollovers .
- Only 2 allowed loans in 90 days
- Payment plans are allowed for 60 days only. No fees are allowed to be charged
New Hampshire
- Maximum Loan Amount Allowed $500
- Term – 7 -30 Days
- Maximum Finance Rate and Fees 36 %
- $100 dollar loan for 14 days = $1.36
- APR for a 14 day loan 36%
- Only 1 Loan allowed at a time, with no rollovers. No refinancing, extensions, or renewals.
If you live in either of the above states and need a payday loan, then the company has to follow the above laws. Whether you are looking for a company online or in person. If you happen to have a loan already out with interest rates higher then the above listed rates then you can call up the company. Tell them about the law and how you can file a complaint if they do not lower your rate/payment.
Don’t worry about finding the best company if you need a loan as if a store practices in either of these states they will have to abide by the state laws. This means that if you were to drive by any cash advance store you will find that they offer amazing interest rates. Unfortunately not every state has payday loan laws like Ohio and New Hampshire.
