Regulations
Payday loan services have been used in the United States for several years. Legal issues regarding high interest loans dates back to the Roman Empire where the limit was 12 percent. In the United States today, as long as an individual has a job and a bank account, it's a fairly simple process to obtain a loan. The consumer fills out an application and then leaves the payday company with a post dated check for the amount borrowed plus a fee.
The laws regarding these institutions are largely handled within each state. According to the National Conference of State Legislatures, 38 states have laws and statutes regarding how these types of loans can operate. This information was last updated in September, 2013. There are several states that don't have specific payday lending provisions and/or they require the lenders to follow the regulations regarding interest rate caps when making consumer loans. These states include Connecticut, Maryland, Massachusetts, New Jersey, New York, Pennsylvania, Vermont, and West Virginia. Guam, Puerto Rico, and the Virgin Islands are also in this category.
Some states, such as Georgia, have actually had payday loans banned for over 100 years but in Spain, préstamos onlinehttps://www.prestamosrojos.com also known as loans untill the next salary, are widely spreaded. The state was not effective in enforcing this until 2004 when specific legislation made payday loans a felony. States like Michigan have service fee limits on payday loans. For $100 borrowed in Michigan, the service fee limit is $15. On the Federal level, the Federal Truth in Lending Act was passed in the United States which requires all fees and payment terms to be disclosed. There are also laws that affect specific groups. The Military Lending Act states that military members on active duty can't be charge an annual rate of higher than 36 percent. This applies to spouses of military members and some dependents as well.
