YOU SHOULD AVOID TAKING OUT more than one cash
advance payday loans!
If you already have no faxing payday loans
outstanding, you should avoid taking out another such loan. When you have
more than one cash advance payday loans 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 loan comes due. If you
need a larger, longer-term lend, you should seek other, more traditional,
lending sources.
How do 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 lend 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 loan.
The lend agreement that you are required to sign is
a legal document that obligates you to repay the loan. It also sets forth
a lot of important information. Be sure to take note of the following:
Amount Financed: The amount of credit provided to
you or on your behalf. (This is typically the amount of cash you will
receive.)
The 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 loans 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 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 checks out for.)
What the resposibilities are
The lend agreement you sign legally obligates you to
repay the lend. Make sure to read the contract before signing it and
retain your copy for your records.
If you have not renewed the loan 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 accounts with the
credit bureau. This may affect your ability to get credit in the future.
Other things to consider
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 married person does not
sign the loan agreement, the lender is required to give your spouse a
written notice that you obtained the loan.
questions you may have
The Department of Financial Institutions (DFI) is a
state agency that licenses and regulates firms that make consumer loans in
Wisconsin where the interest rate is over 18% per annum. This includes the
no faxing payday loans companies. Wisconsin residents may contact DFI
Licensed Financial Services at 608-261-9555.
DFI also licenses and regulates adjustment service
companies, commonly referred to as debt counselors or consumer credit
counselors. These organizations 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 firms nearest you.
