Virginia Cash Advance Consumer information

Payday Loan usage info:

4% (four percents)

Short term loan permit:

Mixed

Legislation:

6.2-1800 et seq.

Maximum loan amount:

500$

Fees:

Simle annum rate for payday loan in Virgina is thirty-six percents. Also a lender may charge 20% fee and 5$ verification fee.

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In Virginia, payday loans are legal. In times of hardship, employees can take advantage of these loans to get by. Since loans have been subjected to many abuses in the past, the state of Virginia has come up with multiple laws to protect the personal interests of borrowers and lenders.

Those laws govern the following: maximum and minimum amount of loans, maximum duration of loan payments, and maximum interest rate that lenders can add to their borrower’s loan. Because of these setup, not only loaners have gained an invaluable options during their times of need, but it also allowed for payday lenders to grow prosperously. And due to its immense popularity, payday loans have become available on the World Wide Web.

Virginia Payday Loan Process

For one to be able to borrow from payday lenders, he must satisfy the bare minimum requirements that they usually impose. And those requirements are:

• The borrower must be eighteen years old or above
• The borrower must have a checking or saving account of his own
• The borrower must have proof that he is a citizen of Virginia
• The borrower must be employed
• The borrower must have a salary of $800 or more monthly

Once he satisfied those, and the other requirements that the lender might have obligated him to present, all he needs to do is to continue with the loaning process. Fundamentally, he will just fill up some forms and set up on how much he will borrow.

If the borrower has a bad credit score or rating, he can still get a payday loan. Also, a borrower has the liberty to allow the lender to deduct the payment from his account automatically.

Virginia Payday Loan Laws and Regulations

Below is the current loan terms that applies to payday loans in Virginal.

• Max Loan Amount: $500
• Minimum Loan Term: 2 payday periods
• Max Fees and Finance Rate: 20% of loan + $5 verification fee + $36% annual interest
• Finance Charge for 14-day $100 loan: $26.38
• APR for 14-day $100 loan: 687.76%
• Rollovers: None
• Collection Fees: Court Costs; $25 NSF fee; Reasonable Attorney’s Fees that do not exceed $250
• Max Number of Outstanding Loans at One Time: One

Virginia Consumer Protection

The Bureau of Financial Institutions advises that all Virginian borrowers protect themselves from malicious payday lenders. To do that they must always check if the payday lender is licensed by checking this page: http://www.scc.virginia.gov/bfi/reg_inst/pay.pdf. Also, in 2009, the Virginia Payday Loan Act that protects lenders and borrowers from loaning abused was amended. To know the changes that were done, go to this page: http://www.scc.virginia.gov/bfi/reg_inst/pay.aspx.

Virginia Payday Loan Alternatives

If one does not favor the use of payday loans or indian payday loans, he has alternatives that he can use to relieve himself from a temporary financial distress. One of those alternatives is to borrow money from his employer. It is typically better than payday loans since employers do not usually enforce interests on employee loans. On the other hand, pawning unused valuables can be a good way of getting emergency cash.

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