Borrow Wisely: Understanding your State’s Laws Regarding Cash Advances

Most states have adopted strict legislation for payday loan companies, all in an attempt to protect the consumer. It is, therefore, in your best interest to research your state's laws before applying for a payday loan.

What Facets of Cash Advances are Governed by the State?

The APR on your payday loan, the duration of your loan and the minimum and maximum loan amount are commonly established by the state, although payday loan company policies may differ due to competition. Subsequently, it is important to shop around for the best loan rates in your area before entering into a contract.

State Regulations

The many different rules and regulations for each state vary widely, as shown in the following example list:

• Alabama ' The maximum payday loan amount cannot exceed $500, and the APR cannot exceed 17.5 percent of the loan amount.
• Arkansas ' The maximum payday loan amount is $400.
• California ' The maximum payday loan amount cannot exceed $300, and the fee for a deposit transaction cannot exceed 15 percent of the face amount of the check.
• Florida ' The maximum payday loan amount cannot exceed $500.
• Georgia ' Payday lenders are prohibited.
• Hawaii ' The maximum payday loan amount is $600, and the fee for a deferred deposit cannot exceed 15 percent of the face amount of the check.
• Idaho ' The maximum payday loan cannot exceed $1,000.
• Illinois ' The maximum payday loan amount cannot exceed $1,000 or 25 percent of the borrower's gross monthly income, whichever is less. The payday lender cannot charge more than $15.50 per $100 loaned over the term of the loan.
• Maine ' There are no maximum payday loan amounts, and there are not restrictions regarding APR.
• Nevada ' The maximum payday loan amount cannot exceed 25 percent of the gross income of the borrower.

It is also important to be aware of the minimum and maximum loan terms, as allowed by the state in which you are obtaining the loan.

The following example list can give you a good idea of the general time frame for payday loans:

• Arizona ' The minimum term of the payday loan is five days.
• Colorado ' The maximum term of the payday loan cannot exceed 40 days.
• Florida ' A payday loan term must range between seven and 31 days.
• Hawaii ' The maximum term of the payday loan cannot exceed 32 days.
• Louisiana ' The maximum term of the payday loan cannot exceed 60 days.
• Michigan ' The payday loan term must be less than 30 days.
• New Mexico ' There are no minimum or maximum loan term requirements.
• Washington - The maximum loan term ca not exceed 45 days.

The best way to responsibly handle payday loans is to become educated about the payday loan process, as well as the laws in your state. It is also important to remember that reputable payday loan companies will adhere to state laws; therefore, if you come across a company that does not abide by state laws, then you should be wary of the company and of their practices.

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Learn more about how a cash advance can help you through any financial difficulty. Take advantage of PayDayOne 's guaranteed payday advance rates to affordably and quickly obtain the funds you need before your next pay check arrives.