Knowing is Everything: Your Rights as a Payday Loan Borrower

Short in cash and want to get a payday loan? It might sound easy, but if you aren’t aware of your rights, you might end up dealing with an unreliable lender for a long time. Before getting started on the application process with a lender, you should know about the following:

State Law

A reliable payday loan lender in Utah or any other state follows federal laws strictly. Depending on where you’ll apply, you have the right to know the maximum amount, repayment schedule, loan extension, and if any interest rates apply. This way, you won’t be surprised with what you have to repay. In Utah, for example, state law limits loan extension for up to 10 weeks only.

Loan Cost

Ask for the annual percentage rate of charge (APR) and loan finance fees. It’s your right to have all the information regarding your loan before committing to a lender. The loan agreement should include what the loan will cost you. Understand all the payment terms and ask questions to clarify any issues you don’t understand.

Loan Duration

The repayment plans should be readily available during your application. Don’t agree to anything unless you have this. It’s your right to know the schedule of your repayment, including the loan extension if you’re planning to apply again. For instance, some states only allow payday loans if the duration is not less than seven days or not more than 31 days.

Repayment Safety

Payday loan lenders shouldn’t harass you in any way to repay your debt. It’s your right to complain if they’re going overboard. They should only contact you at least three to four times a week. Repayment warnings should never involve the use of threatening language.

A good payday loan in Sandy and SLC, Utah or elsewhere involves working with a lender that respects your rights. Browse online to find reliable lenders and never worry about the risks of your loan again.

Resources:

http://www.utcourts.gov/lawlibrary/blog/2009/12/5_warnings_about_pay_day_loans_1.html
http://www.dfi.utah.gov/PDFiles/Consumer%20Guide%20to%20Payday%20Lending%20in%20Utah.pdf
http://www.utahmoneycenter.com/signature-loans/payday-loans/