Though Regulated, Payday Loans Chicago Still Prosper
Financial emergencies call for instant financial solutions. As such, one can opt for payday loans. Payday loans are those short-term loans that usually amount to as much as a thousand dollars. They are usually provided with a regular loan period of fourteen days. Unlike other loans, payday loans do not require credit checks. Even people with bad credit histories such as bankruptcy, delayed loan payments, and the like can still avail of payday loans. These loans are also known as cash advance loans and paycheck advances.
In the state of Chicago, payday loans are regulated under some state laws and regulations that were issued in line with some complaints regarding the interest rates that payday lenders were charging. However, payday lending businesses continues to prosper as more and more people are becoming interested to avail of payday loans Chicago.
Despite restrictions, payday lending businesses are mushrooming all over the state so as to cater to the continuously increasing demand for payday loans. Most people opt for payday loans Chicago primarily because they are uncomplicated and quick to process. Once proper the aspiring creditor is able to show documents that prove his personal identification, monthly income and bank account, he is already qualified to get his requested loan amount an hour after he has
applied for it.
Laws that govern payday lending in Chicago
Since payday loan regulations have been issued in the state of Illinois in 2005, the payday lending business has been subjected to some restrictions regarding its interest rate, the loan period, and the maximum number of outstanding loans for every creditor.
Basically, companies that offer payday loans Chicago are considered to be legal. However, they have to get a license from the Division of Financial Institutions of the Department of Financial and Professional Regulation in the State. It should be noted that the said division is in charge of the overall regulation and management of the payday lending business in the state.
For every hundred dollars that the creditor borrows from the licensed payday lending companies, the finance fee should not exceed fifteen percent. In terms of the loan period for payday loans Chicago. the least loan duration is thirteen days while the maximum loan period is forty-five days.
Unlike other states that do not have regulations as to when an aspiring creditor can request for another payday loan, laws in Chicago prohibit any creditor to grant a new payday loan for a week after he has just settled his previous loan. Moreover, creditors are not allowed to avail of more than one outstanding payday loan. GP
Category: Payday loans