Payday loan law in the State of Pennsylvania is a well elaborated and it is important to know that it is considered perfectly legal. Owing to the benefits that one stands to gain from payday loans it is important to know exactly how to go about applying for one in order to fully enjoy its benefits which can only happen when you are legally assured that you have complied with the law and that your interests are safeguarded.
As earlier mentioned a payday loan is a short term advance of money in either cash advance or check that is made to a borrower that is chargeable at an interest. Short term loans in the financial world attract a higher interest rate than long term ones and payday loans in PA also adhere to the same.
A payday loan or advance is designed to assist you through an emergency in between paydays and it is therefore important to develop a financial discipline and restrict yourself from applying for one unnecessarily or making it a habit. The interest rates aspect of it would make life a bit more expensive for you once you develop a culture of payday advances and that would not be desirable.
According to a house bill introduced in the General assembly of the State of Pennsylvania in 2003 each PA payday or short term loan agreement is to be documented by an agreement between the lender and the borrower. Any renewal or extension of the loan is to be separately documented. It is also important to know that payday loan lenders must be licensed by the State of Pennsylvania.
The maximum allowable amount that could be borrowed in PA through payday loans is $1000 although one is not allowed to borrow more than $500 in one transaction and the minimum duration allowable is 7days. The maximum allowable duration to pay back the loan or renegotiate for an extension is 30 days. The borrower is allowed to negotiate an extension of the loan not exceeding 30 days and not less than 7 days.
All interest or fees chargeable to the payday advance or short term loan in PA should be clearly indicated on the agreement in either the amount charged or in an annual percentage interest rate. According to the Pennsylvania State Laws, the maximum allowable charge for a payday loan is $0.175 for every dollar of the amount borrowed.
It is also worth noting that one is allowed to rescind the loan within 24 hours of entering the agreement or rather by the closing time of the lender’s business on the following day should you think otherwise about the payday loan. This is not interest chargeable.
Remember that the laws governing the payday or short term loan or advance in the State of PA are meant to protect your interests against exploitative lenders and you are better positioned to go about the transaction when in full knowledge of them. Also, laws tend to be revised every now and then and it would do you a lot of good if you kept yourself informed of any changes.
With that knowledge you can go ahead and apply for one. Get the best Pennsylvania payday loan or advance in minutes! Apply online and we will help you find a loan lender in your area.