Payday Loans - A Legal View

Posted by Steve B.
4
Finance & Investment
Sep 6, 2019
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Millions of people each year need emergency money for sudden expenses they did not plan for. Most of these people have some credit problems and seek out the fastest and most accessible way to get fast money – payday loans.

First, a few facts about payday loans:
  • The average loan payback time is 14-15 days for most loans.
  • The average loan size is just over $300.
  • Sometimes you can pay by providing a post-dated check for your next payday period.
  • Most people give their lender authorization to electronically withdraw money from their bank account (checking) when it is due, as well as receive the initial loan in the same manner.

    • Are Payday Loans Legal?

    Yes. Payday loans are legal. However, there are states that have outlawed payday loans and many others that have put restrictions on payday loans.

    Which States Prohibit Payday Loans?

    Currently, payday loans are prohibited in the following states: Arizona, Arkansas, Connecticut, Georgia, Maryland, Massachusetts, New Jersey, New York, North Carolina, Pennsylvania, Vermont, and West Virginia. 

    What Is a Rollover and Is It Legal?
    When someone is unable to repay their payday loan on the scheduled date, they may be able to extend or ‘rollover’ the loan. If it is legal in your state, you can expect to incur some additional fees for the rollover. 

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