Payday Loan Laws in Nevada
Payday loans may look good on paper and may be helpful to meet cash emergencies, but they epitomize predatory lending considering the exorbitant APR that they come with and the ease with which they can trap a borrower in a debt cycle. In order to prevent the same from happening, most US states have implemented payday loan laws for the protection of the consumers. Unfortunately, payday loan laws in Nevada do little in this regard and the consumers there are still quite vulnerable when it comes to taking these short-term cash advances in this state.
It is important to note that payday loans are not available in every state and laws and regulations vary by state. Information for Nevada Payday Loans is provided for your convenience.
In Nevada, payday lenders cannot increase the term of the loan to more than 60 days after the expiry of the original loan. Furthermore, the state laws in this regard do not regulate the interest rate unless the borrower defaults on the payment.
In such a case, the interest rate cannot exceed over 10 percentage points more than the prime lending rate of the biggest bank in the state. Even though payday loan laws in Nevada do not set an upper limit with regards to the amount that can be loaned to consumers, they do define that the maximum amount of loan offered to an individual cannot be more than 25% of his or her monthly income.
This sanction has been imposed for the benefit of the consumer, even though there is a caveat in this law, as it does not limit the number of same day loans that an individual can take from multiple lenders. The default fee for the first two dishonored checks that return to the lender due to lack of funds in the borrower's account is $25. The law clearly states that lenders cannot charge more than one collection fee for a closed account. Nevada payday loan laws allow lenders to take a defaulting borrower to civil court if he or she has refused to repay the loan.
However, unless the lender can prove that the borrower took the loan by committing a fraud or with no intention of repaying it, the latter cannot be prosecuted on criminal charges. A key point pertaining to the state payday loans law that offers significant relief to consumers is the mandatory repayment plan that the lender has to offer to a borrower in case he or she fails to make timely payments. Nonetheless, there is a catch here as well as the state law does not offer any strict guidelines pertaining to prohibition of rollovers. Thus, there is no clarification about when it becomes obligatory for a lender to offer the aforementioned mandatory repayment plan.
If you have taken a payday loan from a Nevada based company and want to file a complaint against the same, you can do so by filing a complaint form and mailing it to Nevada Financial Institutions Division. The mailing address for this institute is 2785 E. Desert Inn Road, Suite 180, Las Vegas, Nevada 89121. However, in order to prevent such a situation, payday loan laws in Nevada strongly recommend consumers to conduct business only with a licensed lender who has a considerable reputation in the market.
Take a look at the benefits of applying for Online Payday Loans if available in your state.
Rudi is a credit analyst who writes articles about credit scores, building credit, and consolidating debt. His know-how on poor credit and credit unions make his input invaluable to our company. There is no credit score out there that Rudi can’t help with.