Oklahoma Payday Loan Laws
As per Oklahoma payday loan laws, payday lending is still legal in this state. But, several restrictions have been imposed on the lenders in order to protect the rights and interests of the consumers. The unfortunate thing is that despite all those restriction, cash advances are still an expensive financial option because lenders are allowed to charge a 3-digit APR. However, there are several important points under the state laws that can benefit the borrowers, especially those who are already trapped in payday debt.
Criminal lawsuits cannot be filed against those borrowers who fail to meet the due date and do not repay their loan in time. Oklahoma payday loan laws however allow lenders to file civil lawsuits against such borrowers. Here, a few points are very important to note. For example, wage garnishment and sale of certain assets to make the repayment are some of the actions that only a court can order as part of a civil lawsuit judgment; it is illegal for lenders to engage in such practices without any court order. The maximum collection fee that lenders can charge is $25 (non-sufficient fund fee).
No Rollovers, No Renewals, No Refinance
The provision of automatic rollovers, renewals or refinance is one of the major reasons that make payday lending a predatory form of lending because it eventually pushes consumers into a viscous cycle of debt, where the outstanding balance keeps on growing substantially with every passing month. Oklahoma payday loan laws have been very strict regarding this. Any types of rollovers or renewals are strictly prohibited. The laws have also specified that if a borrower pays off a previous loan within thirteen days after taking a
new loan, it will be considered as a renewal, and thus, it is illegal.
Mandatory Repayment Plan
Though the state laws have do not specified the terms of the repayment plan, it has made it mandatory for the lenders to offer an option to the borrower to make the repayment in small installments over a certain period of time if otherwise they are unable to repay the loan on the set due date. The important point to note here is that no interest or extra fee can be charged for the extended period of time given as part of the repayment plan.
Maximum Limit On Number And Amount Of Loans
As per Oklahoma payday loan laws, you can have a maximum of two outstanding payday loans in your name at one time. The maximum amount of loan that lenders can issue is $500 per loan account.
Interest And Other Fees
The annual percentage rate on payday loans in Oklahoma can be as high as 390% per annum. Besides that, lenders are also allowed to charge up to $5 for every $100 of loan issued for a repayment period of fourteen days.
The state laws have also imposed certain limit on minimum and maximum repayment period. The loan term must not exceed forty-five days and must not be less than twelve days.
If you want to get more detailed information or if you have to file a complaint against a specific lender, you can contact the Oklahoma Department of Consumer Credit. They can be contacted through fax at (405) 521-6740 and through phone at (405) 521-3653. Their office address is 4545 North Lincoln Boulevard, Suite 104 Oklahoma City OK 73105.
Category: Payday loans