Many states allow payday advance loans, which are used to meet pressing financial needs between paychecks. Emergencies occur and unexpected situations arise which demand immediate cash. However, many individuals and families do not have savings and live from paycheck to paycheck. Payday loans were designed to meet such crises.
Payday advances are a solution for the residents of many states. However, Massachusetts considers traditional payday cash advance lenders to be illegal due to the high rates of interest and subsequent fees charged on the loans. Therefore, residents seeking Massachusetts's payday loans may possibly have to look to other alternatives that provide quick cash for emergencies.
Payday Advances Explained
Payday advances are short-term cash loans that are designed to provide quick cash for financial emergencies. Payday loans are known as such because they are usually repaid on paydays.
Payday loan lenders traditionally charge high interest rates and attach high fees for such rapid cash advances. However, on the positive side, they are short-term loans with the debt only lasting generally between 14 and 31 days. Also, because the verified payday of the borrower is used as collateral, no credit checks are made which makes payday advances available for most people over the age of 18 even if they have no credit or bad credit.
Legal Guidelines That Govern Massachusetts Payday Advances
Traditional, high interest Massachusetts's payday loans are considered illegal in the state. Small loan lenders are approved as long as they are licensed and follow the strict guidelines set by Massachusetts's law. Online lenders seeking to dole out Massachusetts payday advances can do business with residents as long as they are licensed by the state and follow the same
strict guidelines as in-state lenders, which many refuse to do. Also, banks operating within the state are strictly forbidden to cooperate with out-of-state payday loan companies.
The state of Massachusetts closely monitors and regulates all of its lenders. No more than 23 percent interest is allowed to be charged on a loan and no more than $20 can be charged as a finance charge, administration fee, or any other reason.
vAlternative Sources for Obtaining Quick Cash
Due to the very strict limitations and laws surrounding payday advance Massachusetts loans, it can be quite difficult to find a legal source with whom to deal, either in state or online. Therefore, you may be required to look to other sources for quick cash in order to meet financial emergencies. Following are some suggestions.
You may find certain banks or credit unions that will provide short-term loans. However, if you cannot find any in your area you might try getting cash advances through a credit card, or ask your employer for an advance on payment or to work any available overtime.
You might also seek a title loan, take on an extra job, request a loan from family or friends, pawn or sell valuables, or search for state or government hardship programs. If your emergency concerns upcoming bill due dates that cannot be met, you can contact your creditor(s) and request an extension.
Where to Find Additional Information in Massachusetts
If you have further questions or require more information on Massachusetts's payday loans, laws governing loans, locations of short-term loan providers, or others, you can contact the following Massachusetts governmental office.
- Executive Office for Administration and Finance
Category: Payday loans