Deferred Presentment and tiny Loans (payday advances) faqs for Consumers

1. What exactly is a deferred presentment and tiny loans?

These loans may get by various names such as: cash loan, check advance, deferred deposit check loans, deferred presentment or tiny loans. a pay day loan is|loan that is payday} a short-term unguaranteed loan secured with a debtor’s individual check or the debtor’s contract to truly have the money owed applied for of these bank or credit union account at some future date (usually week or two after making the mortgage).

1. What’s the many i could borrow?

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The maximum amount that you can borrow is $350 under the Louisiana Deferred Presentment and Small Loan Act.

1. What is the many i will be charged for an online payday loan?

Louisiana legislation permits a loan provider to charge $20 for each and every $100 lent, plus a ten dollars paperwork cost. But, the total number of the costs cannot go beyond $55 once the quantity lent is $220 — $350.

1. Can we restore or refinance my pay day loan?

No. completely spend off the cash advance before another loan. But, you borrowed, you can refinance the remaining 75% of the amount you initially borrowed, but you will be charged additional fees based on the remaining balance owed if you pay the fees and repay 25% of the amount. As an example, you cannot repay the entire amount on the due date, you can pay the $25 fees plus an additional $25 (25% of $100) for a total of $50 and refinance $75 (75% of $100) if you borrowed $100 with $25 in fees and. costs to refinance the balance that is remaining of75 could be $20.

1. What are the results it is due or pay the 25% plus the fees if I cannot repay my payday loan when?

The lender is required to accept a partial payment of $50 or more and apply the payment to the outstanding balance on the loan ahead of the deadline regarding the loan. The lender can take legal steps to collect the debt on or after the due date.

1. Can a lender cost me personally more cash if we cannot repay my cash advance on time?

Yes. may charge a fee 36% per 12 months for example 12 months after the deadline and 18% thereafter.

1. Can a loan provider deposit check if I do not have enough money in my account to cover the full amount of the check that they are holding?

Yes. The lender can charge you an additional $25 NSF check fee and is entitled to be reimbursed the fee (usually $2 — $3) that the lender’s bank charges for processing the NSF check if the lender deposits your check and it is returned unpaid by the bank.

1. May I do have more than one payday loan outstanding during the time that is same?

Yes. Nevertheless, it’s not a smart idea to make one loan to settle another and can even cause extra hardship that is financial. A second loan will likely make things more difficult if the first loan did not resolve your financial difficulties. The greater amount of payday advances you outstanding, the harder to pay them down completely.

WARNING: Payday advances aren’t designed to fulfill your long-lasting needs that are financial. The long-lasting utilization of payday advances may cause hardship that is financial.

(This document is supposed to adhere to the directives of HCR 137 from the 2009 Regular Legislative Session.)