Payday Loan Laws in Indiana
High-cost payday lending is authorized by Payday Loan Laws in Indiana to protect the interests of both borrowers and lenders. These cash loans are of short-term and secured by the borrower's personal check for the loan amount plus finance charges and fees held by the lender and deposited in the lender's bank account when the borrower receives his or her next paycheck. When the lender is presented with the borrower's check, he or she then receives the cash needed through the loan. To pay the loan, the borrower may also authorize the lender to have electronic access to the borrower's bank account in order to debit the payment. The borrower may also pay the loan off in cash.
It is important to note that payday loans are not available in every state and laws and regulations to vary by state. Information for Indiana Payday Loans is provided for your convenience.
Short-term emergency cash may be obtained through such a loan without the need for the lender to conduct a credit check. All the borrower needs to qualify for the loan is a bank account, which must be in good standing and open, a job or other steady income source, and personal identification.
For such convenience, the borrower
pays a steeper than usual price since the loan is of such a short term. In Indiana,
the interest rates are 15% on an amount from one dollar to $250, 13% for from $251
to $400, and 10% on from $401 to $500. The maximum allowable loan amount in the
state is $550.
The loan amount cannot exceed 20% of any borrower's gross income per month. The loan term is usually for 14 days. A borrower may take out only one such a loan per lender at any one time and only have two total loans at any given time, saving the chance of falling into debt consolidation
The loan is due in its entirety when due. No rollovers are permitted under state law. The borrower also cannot renew, refinance or consolidate the loan when due.
Should the check be given to the lender for payment or the electronic debit authorized to be returned for insufficient funds, the lender may charge the borrower one NSF fee of $20. Should the borrower use the check or debit authorization to defraud someone else, additional fees and charges may then apply against the borrower. Criminal action against the borrower is prohibited in under Indiana law.
A cooling-off period of seven days is applicable for the borrowers after six consecutive loans have been received. The law also makes provision for offering the borrower a payment plan if needed to complete paying off the loan balance. After receiving three consecutive loans, a lender must off the borrower an extended plan of payment requiring at least four (no fewer) equal installment amounts. This must be provided at no additional cost to the borrower. It is always in the borrower's best interest to pay all debts completely and on time to maintain financial stability and good credit.
The regulator for Payday Loan Laws in Indiana is the Supervisor of Consumer Credit. All requests for information or complaints concerning short term payday loans should be directed to the Indiana Department of Financial Institutions at 30 South Meridian Street, Suite 300 in Indianapolis, Indiana 46804 or by calling 800-382-4880.
Take a look at the benefits of applying for Online Payday Loans if available in your state.