Instant Cash Advance Arkansas
Instant Advance Cash Loans Online Arkansas
Arkansas payday loans-The laws and restrictions
When your finances are very tight and the payday appear to be too far, you must look for alternative ways to get money. Sometimes you may not want your friends and family to know that you are short of money and therefore you will not borrow from them. Your needs for cash may be too urgent such that you don’t have time to wait for a bank loan to be processed and this leaves Arkansas payday loans as the best alternative.
People will go for instant cash advance arkansas payday loans due to a number of benefits that come with them. Some of these benefits include;
Confidentiality- Payday loans must protect your personal details and this information must not be shared with any third party. This means that nobody will have to know that you are facing financial difficulties.
Fast cash out-Payday loan companies work very fast to ensure that there is money in your account as fast as possible. This means that you can apply for the loan to meet your immediate emergencies.
Allows all types of credit- Unlike the banks that are so interested with your credit score, getting a payday loan is very easy even when you have a bad credit.
Easy and secure-most payday loan companies provide their services over the internet and this means that you can apply for the loan from the comfort of your home. As long as the company has been registered, the client should guarantee that the transaction is secure.
If payday loan lenders are not regulated they could charge their clients exorbitant interest rates.
When interest rates are too high, the loan brings more financial problems to the lenders because they will use all their paycheck to pay for the instant payday loan in Arkansas. This situation would likely force the debtors into a culture of borrowing in order to meet their financial needs. The state of Arkansas has established rules and regulations that control this industry in a bid to protect debtors from unfair lending practices that may be used by some lending companies.
Terms and limits of the loan
Arkansas laws stipulate that payday loan lenders must not charge an interest rate of more than 10% on the total loan amount or a maximum of $25 for the loan amount. The maximum amount of loan that one can apply as a payday loan is $400. The payday loan must be paid within a period of between 6 days and 31 days. Payday lenders are not allowed to lend money to a debtor in order to allow him to pay another payday loan. On top of this, the law forbids payday companies from giving a debtor more than one payday loan in a period of 72 hours. The law also stipulates that no borrower should pay more than $400 as fee for payday loans within a period of one calendar year. Payday loans in Arkansas cannot be consolidated or renewed for whatever the circumstances.
The residents of Arkansas are protected by law from unfair loan collection practices that may be applied by some lenders. Unless the borrower acquired the loan through a fraudulent way, the lender is forbidden from threatening the debtor with criminal action in the circumstances that they default payment. In a situation where the borrower is taken to a civic court for defaulting payment, the only fee he will pay includes attorney fee, court costs and insufficient fund fees. Depending on the terms of the loan, the lender may be allowed to seize funds from your checking account in a bid to recoup the money they have extended to you.
if the court establishes that the lender was operating illegally in the
state, the debtor will only be required to pay for the face amount of
the loan and any other fee that he may have paid must be refunded back
to him. If the payday loan employs the services of a collection agency,
they must ensure that such an agency has been licensed to operate in
There are two circumstances where the lender will be allowed to press criminal charges on the debtors i.e. for reasons of stop payment marker and also account closure. These circumstances amounts to fraud and can attract heavy fines as well as a jail term. This will happen you closed the account intentionally to avoid paying the payday loan. It is important to note that there are no other reasons that can make debtors to be charged with criminal charges with regard to payday loans.
Dealing with complaints about payday companies
It is important to note that all pay day loan companies in Arkansas are required to abide by federal Fair Debt Collection Practices Act every time they are trying to recoup money from debtors. This act protects consumers from lenders who may want to call them at wee hours of the night and those who may want to leave threatening messages on their phones. If the terms of contract allows, the lender may visit a debtor in his place of work in case the debtor has defaulted payments. If a debtor is uncomfortable with the collection methods being used by collection agencies, he is free to contact Arkansas Board of State Collection Agencies who will look in to the complaint. This board was established in 1965 in a bid to protect consumers from abuse and harassment by the collection agencies.
Pay day loans have helped many Arkansas residents. There are many
reasons why people apply for these loans for example; to meet medical
bills, to pay for unexpected car repair, to pay for repair on a damaged
plumbing line, a broken transmission and so on. However, it is important
to note that payday loans are not only useful to pay for disasters,
they can also be useful in good times for example when you want to
travel to see a friend or when you are going for a holiday with your
family. If you are in need of fast cash and you don’t have anywhere else
to turn to, you should not be ashamed to apply for payday loans. It is a
fact that we live in very difficult economic times and your salary at
times not see you through the entire month.