Every state has different laws to govern the payday loans in that state. The Payday Loan Laws in Virginia are quite favorable to borrowers. However, before applying for a loan in this state or in any other state, consumers should look closely at the laws so that they understand how the process will work.
It is important to note that payday loans are not availble in every state and laws and regulations vary by state. Information for Virginia Payday Loans is provided for your convenience.
The amount of the loan typically depends upon how much money the borrower earns, but in Virginia, no one can borrow more than $500 in a single payday loan. In most states, borrowers must pay this amount back on their next pay date. However, in this state, borrowers are lucky because the lender must give them at least two pay periods before the repayment is due. The interest that the lender can charge must not exceed the equivalent of 36 percent annual interest plus a five dollar verification fee plus 20 percent of the loan. For instance, on a loan of $100, the total amount of interest that can be charged is $26.38. That is the sum of the five dollar verification fee, the $20 which is 20% of the loan, and $1.38 which is the 36% annual interest rate.
According to the Payday Loan Laws in Virginia. borrowers are only allowed to take out one loan at a time. They are not allowed to renew their loan. Thus, when the money is due, they must repay it. They cannot pay an extra fee to extend the loan or refinance it.
If the borrower fails to pay back the loan, the lender can charge
them some additional fees. Typically most lenders will hold a post dated check for the loan's repayment. If that check is returned to the lender and marked as insufficient funds, the lender may charge the borrower a $25 insufficient funds fee. That fee is in addition to any fees that the borrower's bank may charge them for bouncing the check. In order to reclaim their money, the payday lender may take the borrower to court. Ultimately, they may be able to force the borrower to cover the cost of their attorney fees. However, those fees must be reasonable, and they must not exceed $250.
If a borrower feels that they have been treated unfairly by the payday lender or by the collector if they forgot to repay their loan, they can submit a complaint. Their complaints must be sent to the Virginia Bureau of Financial Institutions which is based out of Richmond, Virginia. They can be reached by mail at 1300 East Main Street, Suite 800 Post Office Box 640 Richmond VA 23218. Alternatively, they may be reached by phone at (804) 371-9657 or by fax at (804) 371-9416. All communications should be directed to Susan E. Hancock.
When consumers need money fast, Virginia payday loans are one of the easiest types of loans to get.
Take a look at the benefits of applying for Online Payday Loans if availble in your state.
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Category: Payday loans