Payday Loan Laws in Louisiana
An emergency need for cash can happen to anyone. One source of help in such a situation may be for a borrower to obtain a short-term Louisiana payday loan, so named because they are designed to be repaid on the borrower's very next payday. The loan process is simple. The lender does not conduct a full credit check. Instead, the lender receives from the borrower a personal check in the amount of the loan plus the finance charge and any fees. The lender holds the check until the borrower's payday, then deposits it in the bank and the loan is thereby paid off. In lieu of a paper check, the lender may be given electronic access to the borrower's bank account so the loan payment amount may be debited from it.
It is important to note that payday loans are not available in every state and laws and regulations vary by state. Information for Louisiana Payday Loan Laws is provided for your convenience.
Under the provision of Payday Loan Laws In Louisiana, the maximum amount of such a loan may be $350 and the loan term may be for a maximum of 60 days. The cost of a payday loan is a $5 documentation fee and either 16.75% of the amount of the check or $45, whichever is greater. The borrower should bear in mind that the average percentage rate (APR) for a 14-day loan under these terms is 650%. If the borrower should default on the loan, during the first one to 12 months, the finance rate becomes 36% per year. From month 13 forward, it changes to 18% per year.
The cost of borrowing money through a payday loan is high and the borrower should take very seriously the need to repay the loan quickly, within the allotted loan term. Failure to do so will result in further finance charges and other fees and make paying the final balance in full even harder. The original loan may not be rolled over at the end of the original 60 days. However, the lender has the option of accepting a partial payment from the borrower for 25% of the total amount of the loan that was originally advanced as well as any applicable fees. After that, the borrower may then enter into a new loan for the amount of the remaining balance.
That is the only provision for making up a payment plan that the law allows or requires in Louisiana. If the borrower's check left with the direct lender to cover the loan and finance charge should be returned for reason of insufficient funds, the lender is allowed to charge the borrower one NSF fee equal to the actual charge for such made by the bank. In addition, the borrower may be required to pay a further five percent of the amount of the original check or $25, whichever is the greater of the two amounts. If the account must eventually be collected, the lender is entitled to any court costs and reasonable attorney's fees. Criminal charges against the borrower may not be pursued under Louisiana law.
The Louisiana Office of Financial Institutions handles any complaints or information requests concerning short-term payday loans. Contact them by mail at Post Office Box 94095, Baton Rouge, LA. 70804 or by phone at 225-925-4660.
Take a look at the benefits of applying for Payday Loans Online if available on your state.