Know Your Rights Against Payday Loan Companies
If you are in need of immediate cash, there are best payday loan companies that can lend you the amount that you need anytime without much hassle. However, you should also keep in mind that even if you are the one that is borrowing money from these payday loan companies, you also have your legal rights as a borrower.
Protect your interest while having a deal with these payday loan companies by knowing the laws that regulate these financial companies. Prevent unlawful payment charges and collections by knowing your rights.
What are you rights against these payday loan companies? Read on to find out.
Background
The payday loans laws are dependent on any state. Each state has their own laws about payday loans and regulations. You can visit your state’s legislature website to find out the laws that concerns payday loans.
Structure
To determine if you are really obligated to pay, you may wonder and ask the structure of your payday loans. In many states, there are also legal restrictions that limit the size of a payday loan and the amount that they can lend and charge to their clients. The amount that the payday loan will lend you will depend on the percentage of your income. For example, if the payday loan company gave you an amount and charges you an amount that exceeds the percentage of your income, it can be considered as unlawful, and you will be exempted of the payment obligations.
Process
In order to have forgiveness of the loan, you will have to dispute the lenders right to collect payment from you. You can file a complaint in the consumer protection agency in your state, file a written request with the payday loan company to check the legality of your loan or take the payday loan company to small claims in the court.