Could you have significantly more than one pay day loan

Deferred Presentment and loans that are smallpayday advances) faqs for customers

  1. What’s a deferred presentment and tiny loans?

These loans may get by various names such as: cash loan, check advance, deferred deposit check loans, deferred presentment or loans that are small.

a payday loan is really a short-term unguaranteed loan secured by a debtor’s individual check or the debtor’s agreement to really have the bad debts taken out of the bank or credit union account at some future date (usually fourteen days after making the loan).

  1. What’s the many i will borrow?

The maximum amount that you can borrow is $350 under the Louisiana Deferred Presentment and Small Loan Act.

  1. What’s the many I’m able to be charged for a quick payday loan?

Louisiana legislation enables a loan provider to charge $20 for each $100 lent, plus a ten dollars documents fee. But, the total quantity of the charges cannot go beyond $55 as soon as the quantity lent is $220 – $350.

  1. May I restore or refinance my cash advance?

No. You need to totally spend from the loan that is payday you possibly can make another loan. Nevertheless, in the event that you pay the charges and repay 25% regarding the quantity you borrowed, you are able to refinance the residual 75% for the quantity you initially borrowed, but you’ll be charged additional charges on the basis of the remaining stability owed. As an example, you cannot repay the entire amount on the due date, you can pay the $25 fees plus an additional $25 (25% of $100) for a total of $50 and refinance $75 (75% of $100) if you borrowed $100 with $25 in fees and. The extra costs to refinance the staying stability of $75 could be $20.

  1. What goes on if we cannot repay my cash advance when it’s due or spend the 25% as well as the costs?

Prior to the deadline in the loan, the financial institution is needed to accept a partial repayment of $50 or maybe more thereby applying the repayment into the outstanding stability in the mortgage. The lender can take legal steps to collect the debt on or after the due date.

  1. Can a lender fee me more cash if we cannot repay my pay day loan on time?

Yes. The financial institution may ask you for 36% per year for starters 12 months after the deadline and 18percent per year thereafter.

  1. Can a loan provider deposit my own check that they’re keeping if i actually do n’t have enough money within my account to cover the entire quantity of the check?

Yes. The lender can charge you an additional $25 NSF check fee and is entitled to be reimbursed the fee (usually $2 – $3) that the lender’s bank charges for processing the NSF check if the lender deposits your check and it is returned unpaid by the bank.

    Can I do have more than one payday loan outstanding during the exact same time?

Yes. Nonetheless, it is really not a good notion to help make one loan to repay another that can cause extra monetaray hardship. In the event that first loan failed to resolve your financial hardships, a moment loan will probably make things more challenging. The more payday advances you have actually outstanding, the harder it will likely be to pay them down completely.

WARNING: pay day loans aren’t designed to fulfill your long-lasting needs that are financial. The long-term usage of pay day loans could cause pecuniary hardship.

(This document is supposed to comply with the directives of HCR 137 through the 2009 Regular Legislative Session.)