The rates and fees associated with your short term cash loan will ultimately be determined by your lender, but there are many similarities throughout the entire cash loan industry. It is the goal of lend.ph to provide a guarantee that you will deal with only those lenders who agree to follow Federal and state lending guidelines. We also provide plenty of resources and information to help you deal with any issues that may arise with the lender you select.
Cash Loan Basics
lend.ph has worked hard to provide you with articles, resources and other information that is designed to help you have the best experience possible when it comes to obtaining short term cash loans. This includes information about the rates and fees associated with loans, scams that you should familiarize yourself with, and the best ways to use cash loans responsibly. We have provided links to the Federal Trade Commission and the Consumer Financial Protection Bureau. These agencies exist to help regulate the cash loan industry, prevent unfair debt collection procedures and ensure that you are not discriminated against when it comes to obtaining a short term cash loan.
Implications of Late Payment
If you are unable to repay your loan on time, you are urged to contact your lender as soon as possible. Late payment fees are set by the lender according to your state’s regulations, and each lender has its own policy on how to handle late payments. Short term loan lenders may take several courses of action in case of late payment. It is advised that you review all of the documentation you receive from your lender before signing the loan agreement in order to get an understanding of what will happen if your payment is late.
Implications of Non-Payment
- Financial implications: fees for short term loans that amount up to $500 may vary from $15 to $40 for $100 borrowed. Lenders may charge higher fees for loan amounts of more than $500. Please remember to check it with your lender before signing a loan agreement. Please note that lenders may charge additional fees for non-payment or non-sufficient funds. For example, lenders may charge $20 for non-sufficient funds and 10% of principle if the debt is 15 days late.
- Collection practices: most lenders from our network stick to in-house collections and attempt to collect the debt through Email, SMS and telephone. Apart from that, they do not sell the loan or sue debtors; instead they may offer debt settlements over some period of time. Debt collectors must observe the regulations of the Fair Debt Collection Practices Act so please go through the FDCPA or contact your lender directly for more information.
- Impact on credit score: if the borrower fails to repay the debt, the lender is within their right to file a report with a credit rating company saying the borrower in question hasn’t paid back the loan. The report may be reflected in borrower’s credit record for the time the loan remains unpaid. Once the loan has been paid back in full, the corresponding changes are introduced to the report and the credit record changes too.
- Renewal policy: depending on the lender, renewal may be automatic if the loan has not been repaid on the due date. Some lenders give debtors several options to choose from when taking out a loan: auto renew a loan, pay it in full or pay down the principle. The minimum renewal term is 15 days. Please note that you may be required to pay additional fees associated with loan renewal and loan interest rates may be reset as well.
Disclosure of Fees Including the APR
The APR is the annual percentage rate for a loan and represents the loan cost as related to the repayment timing and the amount of loan taken out. The APR for short term loans ranges from 12% to 30%. Though the APR for short term loans is higher than traditional loan APRs it is still less than interest rates charged for bounced checks or overdraft fees.
Every lender in our network is required to adhere to Federal law and state regulations as they apply to short term cash loans. States typically govern whether or not short term loans are allowed, the maximum amount that may be loaned and the amount of finance charges and interest that a lender can charge. Some states set limits on the number of loans that may be outstanding at any given point in time as well as the number of extensions that are available to consumers. Listed here are the states, the maximum loan amounts, and the regulations as they apply.