If you have an emergency then a payday loan is the quickest way to get some cash.
A payday loan is a short-term primarily cash-based small loan that has become very popular due to numerous factors. Some of these factors include the fact that the loan is provided in cash, within a few hours and that it does not need the involvement of banks. Therefore, people with bad credit can also apply for it.
However, the downside of these loans is that they can become pawns when lenders ask for an interest that is often unreasonably high. While in the US each state has their regulations in place to deal with cash based loans, it is not legal in every state.
Let’s see how payday loans can be obtained in the sunny state of Hawaii.
If you need a loan click on one of the cities or apply online right now by clicking on the link below.
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What are the payday loan laws and regulations in Hawaii?
Payday loans are legal in Hawaii, and the law regulates them under Hawaii Revised Statute 480F-1 et seq. This law places the following terms and conditions on the payday loans
- Maximum amount of a payday loan: USD 600
- Maximum term of the loan: 32 days
- Minimum term: no minimum term, it can be paid back the next day
How much can you be charged by a payday lender in Hawaii?
APR can be sky high. For instance, if you borrow USD 100 for a 14-day term, the amount to be paid back is USD 459. This makes max APR being 459%. The State considers having a law in place which would reduce APR to 36% due to numerous debts within the state, due to the lending of payday loans and the consumer’s inability to pay these back on time.
Additional fees which apply include the following:
- Financing fees: amount up to 15% of the total value in case of check
- Collection fees USD 20 (NSF charge)
Due to high charges and APR, only one payday loan is allowed at a time.
Your rights as a lender in HI
Rollovers are not permitted. The borrowers need to be at least 18 years of age, hold a citizenship or be a permanent resident of the US. The borrower needs to have written proof showing that they are officially employed and have a regular monthly income. Social Security number also has to be provided, the borrower’s ID and either access to the borrower’s checking account or access to the debit bank account, in case the borrower would fail to pay back on time.
Lenders need to be licensed by the state for them to be able to do lending activities. As lenders may charge such an incredibly high APR that makes it virtually impossible to consider a payday loan a logical option to go for. If anyone wants to borrow money, they are highly advised to consider other alternatives or consult with their banks about any other possible options. If you want to file a complaint or see anything illegal with your contract and with the lending company contact the Hawaii Department of Commerce and Consumer Affairs to file an official complaint with them.