YOU SHOULD AVOID TAKING OUT MORE THAN ONE Payday
loans!
If you already have cash advance payday loans
outstanding, you should avoid taking out another such loan. When you have
more than one cash advances outstanding, you may find it very difficult to
pay the required finance charge payments, much less paying all or a
portion of the amount financed when the lend comes due. If you need a
larger, longer-term loan, you should seek other, more traditional, lending
sources.
HOW THEY WORK
Payday loans work like this:
You fill out an application and provide the lender
with items such as paycheck stubs and a photo ID.
You sign a loan agreement, write a postdated check
to the lender, and receive your cash.
Your check is held until your loan payment is due -
usually two weeks. The lender then deposits your check - unless you have
replaced the check or have already repaid the lend.
The loan agreement that you are required to sign is
a legal document that obligates you to repay the lend. It also sets forth
a lot of important information. Be sure to take note of the following
items:
The Amount Financed: The amount of credit provided
to you or on your behalf. (This is typically the amount of cash you will
receive.)
Finance Charge: The dollar amount the credit will
cost you, or the amount of interest you pay for receiving the credit.
Annual Percentage Rate (APR): The cost of your
credit as a yearly rate. Because these lends are small, short-term
transactions, the APR is typically quite high. In Wisconsin, there are no
laws that limit the interest rate that a lender can charge.
total amount of payments: The amount you will have
paid after you have made all payments as scheduled. (This is the amount
that you will write your postdated check out for.)
YOUR RESPONSIBILITIES
The lend agreement you sign legally obligates you to
repay the loan. Make sure to read the contract before signing it and
retain your copy for your records.
If you have not renewed the lend or paid it in full,
make sure you have sufficient funds in your checking account on the due
date of the loan so your check clears when the lender deposits it.
If you cannot or do not repay the loan, the lender
can seek a money judgment against you for the face amount of the check and
court costs; and, if they were disclosed in the contract, any late
charges, interest after maturity, and NSF fees. Once a money judgment is
obtained, a lender may attempt to garnish your wages.
Many lenders also list past due loans with the
credit bureau. This may affect your ability to get credit in the future.
OTHER CONSIDERATIONS
If you pay the lend in full prior to its due date
you are entitled to a partial refund of the finance charge.
If you are married and your better half does not
sign the lend agreement, the lender is required to give your spouse a
written notice that you obtained the lend.
Faq's
The Department of Financial Institutions (DFI) is a
state agency that licenses and regulates companies that make consumer
lends in Wisconsin where the interest rate is over 18% per annum. This
includes the no faxing payday loans firms. Wisconsin residents may contact
DFI Licensed Financial Services at 608-261-9555.
DFI also licenses and regulates adjustment service
organizations, commonly referred to as debt counselors or consumer debt
counselors. These company help debtors set up and keep on a budget. A list
of the adjustment service organizations licensed by DFI. Wisconsin
residents may also contact DFI Licensed Financial Services at 608-261-9555
for the name of the adjustment service organizations nearest you.
