New Payday Regulations

If you are in the market for a payday loan, you should be aware of new and upcoming regulations. On 1st January, 2010 new payday regulations and laws are coming. These regulations have been put into place by the DFI. According to the new laws:

• You may borrow only 30% of your monthly income (gross) or $700, whichever is lower
• All your loan information will be put up in a registered state level database. Thus all the lenders will have complete information of your loans
• In a 12 month period you are allowed to take only 8 payday loans
• In case you can’t pay your loan before the due date, you must inform the lender. He can allow you to pay it within 90 or 180 days without any additional fees, depending on the loan size
• No lender can harass you or intimidate you when he comes for collecting his payment. In case he does, you may contact and file a complaint the Washington State Department of Financial Institutions.

Remember to regulate your expenses, make sure you can afford to pay back what you have been lended. Verify and understand your options before making an agreement with a lender. Be sure to check their license status and their adherence to current payday lender laws.

Verify a lender’s license and learn more at http://www.dfi.wa.gov/consumers/education/payday_loans.htm

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Be Careful of Unlicensed Payday Lenders

If you are planning to borrow money from any payday lender then you need to be careful.  A warning has been issued by the Department of Financial Institutions regarding unlicensed lenders. It aims to inform consumers about a growing threat: many unlicensed lenders offer you services which are considered illegal.

The department has also offers consumers an easy solution to this problem. It asks you to verify the licenses of the lender. Payday lenders are required to have a license under DFI before they can begin business. If they fail to do so, their business is not legal.

It is very easy to check if the lender is licensed or not. You just need to visit the website “http://www.dfi.wa.gov” www.dfi.wa.gov and check the lender’s license there.

Remember to check your lender’s license before committing to a payday loan, and make sure they are within regulations at the time of your loan.

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