Payday loans are used by individuals to meet the small shortfall in cash amount during the end of the month. These loans are available to residents that meet the criteria set by the payday loan lenders. Generally, the loans are easy to obtain as compared to traditional bank loans. This has been the main reason for its popularity among the consumers most of whom are middle-class workers. The information will prove invaluable for individuals who are a resident of the state and want to obtain a payday loan.Apply Today!
Wisconsin is one of the 32 states in the US that allow high-cost payday loan lending. It is also one of the only 8 states where there are no caps on the APR rates and fees. Lenders that offer payday loans to the residents must comply with the requirements stated in Wis. Stat. 138.14 legislation.
The maximum payday loan amount that can be advanced to the state residents include the lesser of the following.
An individual whose gross monthly salary is $3,000 can only advance $1050 (3000*35 percent) to the individual. On the other hand, an individual whose gross income is $5,000 can take a maximum of $1,500.
Apart from a limit on the loan amount, the state legislations also put a cap on the loan terms. No lender can advance a loan for more than 90 days to an individual. That being said there is no limit on the maximum number of loans that can be advanced at one time.
Lenders are also allowed to hold back the checks from the individuals for repayment of the loans. Also known as advance checks, a number of states don’t allow the lenders to take such checks for repayment of the loan amount.
Payday loan lenders are also required to send certain documents to the lenders according to the specification of the state laws. Some of the documents that must be sent to the prospect borrowers before they sign the loan agreement include the following.
Keep in mind that the state of Wisconsin has put a collection fee limit of $15 per check. The state rules don’t allow the lenders to take criminal action against the persons that default on the loan. If you have any complaint against a payday loan lender, you can contact the Wisconsin Department of Financial Institutions.