Most recently I had someone in my office who had taken out several payday and title loans in order to stay current so I decided to discuss further here on this blog, says Bankruptcy Attorney Victorianne C. Maxwell
PAYDAY LOANS IN GENERAL
They are often referred to as a paycheck advance. It is a small, short-term loan that is intended to cover a borrower’s expenses until his or her next payday.
GENERAL TERMS OF A PAYDAY LOAN
The payday companies do not run a credit check the deposit the funds into a checking account within 24 hours after it is approved. The interest rate on these loans are often extremely high. Payday lenders usually charge a fee of at least $15 – 30 for every $100 borrowed. In 2006, Congress capped the interest rate for payday loans to military personnel at 36%.
FAILING TO PAYBACK YOUR PAYDAY LOANS
Typically, payday lenders will debit your checking account in order to collect their fees and the balance on your loan. If the payday lender deposits your check and it bounces or the funds are not available, your bank will charge you bounced check fees. Also, the payday lender can potentially sue you for the default.
LEGALITY OF PAYDAY LOANS?
In North Carolina, payday companies are labeled predatory lenders and have been banned. Several companies have been fined by the North Carolina Attorney General’s office for their practices.This means they can not operate in the state of North Carolina. Some payday lenders find loopholes and offer their services over the internet. If they offer serves to a resident of North Carolina the interest rate is capped at 36%.
HOW CAN I CANCEL THE PAYDAY TRANSACTION?
Unfortunately, most people will end up taking out these loans continue to take these type of payday loans out a continuous basis and end up paying out more in fees than the actual value of the loans. Often times the borrowers become reliant on these loans to pay their bills. There are other options like cash advances. Though cash advances are often at a high rate of interest they are less costly than payday loans. If the issue with credit itself is becoming a problem it may be time to go see a Bankruptcy Attorney who can help you with a fresh start. Payday loans are unsecure debts which are discharged in chapter 7 bankruptcy and eventually discharged in a chapter 13.
Maxwell Law Firm PLLC represents clients in North Carolina with: bankruptcy court, filing for bankruptcy, chapter 7 bankruptcy, foreclosure defense, chapter 13 bankruptcy representation, and loan modifications. You may schedule your appointment by calling 704-461-1883 or save 25% off the fees and schedule online. California Bankruptcy Attorney Chirnese L. Liverpool assists debtors with California payday companies she can be contacted by calling 818-714-2200.