Payday advance loans can be better appreciated after understanding how the industry
works, loan terms, and the legal protections put in place to protect both the lender
and the borrower. When you request a payday
loan from Purple Payday Loans, we will submit your application to our network
of lenders and get you the cash you need fast. You'll know in seconds if you're
approved and for how much.
If you would rather apply for your payday loan by phone, you can simply call
us at (800) 515-2429.
- Our 2-minute loan application is fast and easy to complete.
- Bad credit is not a problem. We specialize in bad credit payday loans!
- You'll know in seconds how much you can get and what the fees are.
With payday advance loans, the borrower usually writes a personal check or
signs an electronic access to his or her personal account for the borrowed amount
as well as the interest. The lender, on the other hand, holds the check until the
loan and finance charge are paid during the next payday. The borrower can pay the
loan either by cash to redeem the check or by allowing the check to be cashed by
The Payday Advance Loans Industry
There are many sources of payday advance loans in every city. Lenders range from loan store clerks, pawn shops to check cashers and rent-to-own loaning companies. The loans are usually advertised through toll-free numbers and online.
analysts estimate that by 2010 there were 19,700 payday advance loans stores in
the country. The stores are estimated to have loaned an estimated $29.2 billion.
There was an increase in internet lending of payday loans with estimated revenues
of $2.7 billion accrued from loans worth $10.8 billion. This is just one of the
indicators of the size and significance of this industry.
Terms Of Borrowing And Payment
Depending on the legal maximums enacted by each state, loans in this industry range
from $100 to slightly over $1000. Loan term in most cases is usually two weeks.
The typical annual interest for payday loans is around 400 percent. This means the
charge for a $100 is between $15 and $30 depending on the duration.
Qualification For A Payday Advance Loan In most cases the only things the borrower needs to have to get a payday loan are:
*A bank account
*A steady source of income
Legal Status And Protection
Payday lending is legally allowed in 33 states. The District of Columbia and sixteen
other states have rate caps to protect borrowers from exploitation by unscrupulous
lenders. There is also a federal protection for service members that was enacted
2007. The protection extends from payday loans, to car title and tax refund loans.
In such cases, lenders are not allowed to charge anything in excess of 36 percent
annual interest. There is also regulation on the use of mandatory arbitration clauses
in the loan contracts. Other states such as Oregon, Ohio, Montana, and New Hampshire
have also imposed rate caps in recent years. With such state regulations, the payday
advance loans industry now operates in a safe environment for all parties.