Payday loans like every contract entered into by both parties are governed by terms and conditions. Borrowers are always advised against skipping reading and perusing through the terms and conditions provided by the lender. Before putting down your signature in agreement to whatever the loan company is saying, it is expedient that you carefully review the lender’s terms and conditions.
Here are things you should carefully review before signing the agreement.
Payday loan rights
Payday loans are recognized by both state and federal government; there are state and federal laws binding these loans. It is expected of a borrower to know what his/ her rights are under the federal and state law. You are also protected by your rights as a borrower and the same is applied to the lenders. Your repayment schedule and maximum amount borrowable is determined by the state law, various states with their different laws.
So, you have to check if the law guiding payday laws in your state is favorable enough to you before anything.
Know the cost of the loan
It is your right as a borrower to know the full details of the loan you are about taking. It is also the responsibility of the lender to provide you with all the necessary information regarding the interest rate, cost, finance charges, APRs, loan extension fees, fines, etc. You shouldn’t be rushed into signing the loan agreement by the lender, but should be allowed to thoroughly go through and understand what the cost of the loan is.
Know the loan time table
It is also the responsibility of the payday loan company to provide you with information regarding their repayment plans and schedules. These details should be made readily available at the first stage of your application. Quick loans express have this information on the official website. Note that, despite the various repayment schedules, it is expected of you to pay off your debt before the repayment date, in order not incur extra fees.
Immunity from threats
In the case of unpaid loans, lender might employ the services of collection agencies to help them get back their loans. There are laws shielding you from being emotionally threatened by these collection agencies—it is dependent on the state. The lender might take legal actions against you by taking you to court, the court might grant them access to hit your wages or confiscate your assets. Immunity to threat is something you should look out for because, things sometimes don’t go the way we planned.
Payday loan state rights
As mentioned earlier, laws guiding payday loans differ from state to state. For instance, you are can cancel your payday loan within a day in Washington.
But so is not the case if you applied online. Once your application has been submitted it may not be reversed.
Jumping at any loan offer might be a financially dangerous move to make. Take your time to through the lender’s website, get facts about payday loans, ask necessary questions and make sure that all the terms are clear to you before signing any agreement. Failure to do so might come with regrets and you know ignorance is definitely not an excuse in this case.