How Payday Advances Vary by Nation

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It’s the middle of the month and you can’t pay the electric bill. You can’t pay it. You’re short. We’ve all been there. What are your options?

Try a Payday Advance

The process is simple. The bank provides a short, unsecured loan to the borrower. The borrower must provide a verification of employment (pay stubs, bank statements, etc.) during the loan process. And finally, the loan must be repaid on the borrower’s next pay day.

In the retail market, borrowers who need a small loan to pay a bill – usually have the dire circumstances – visit a payday lending store for a cash loan. Payday advances are also known as payday loans. The borrower is obliged to write a post-dated check in the amount of the loan plus fees and return to the store to pay the loan in full. In cases where the borrower fails to repay the loan, the payday lending store will cash the post-dated check.

But you don’t have to leave your home to get a payday advance loan. Sites like Pay Day One, Great Plains Lending, and Plain Green Loans are there to help.

Applying online for a payday loan is straightforward. Potential borrowers can easily apply online through the site link or via fax. Here are some general steps to this loan process:

  • Check each bank or financial institution’s sites for specific details.
  • Complete an online application.
  • The payday loan is deposited to the borrower’s bank account.
  • On the borrower’s payday, the loan amount and any associated fees are charged to the borrower’s account.

For more information on how to get a payday advance loans, visit Consumer Federation of America’s PayDay Loan Consumer Information site.

Payday Advance Loans by State

Payday advance loans are legal in 33 states. According to data from the Consumer Federation of America, Georgia, New York, New Jersey, and Arkansas effectively ban payday advance loans by legal means. Five states – Maine, Oregon, New Hampshire, Ohio, and Montana – allow payday loans in the form of postdated checks, but at a lower interest rate than standard payday loan rates.

According to the Consumer Federation of America, eight states and the District of Columbia restrict payday lending through caps in interest rate related to APR or annual percentage rate. The eight states are: Arizona, Connecticut, Maryland, Massachusetts, North Carolina, Pennsylvania, Vermont, and West Virginia.

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Payday Loans by Nation

Canada

In Canada, payday advance loans are limited by usury law. Since 2006, the provinces now regulate payday loans following legislation through Canada’s parliament. All payday lenders operating in British Columbia must be licensed by the Consumer Protection of British Columbia.

United Kingdom

In a 2010 report, Britain’s Office of Fair trading recommended introducing legislation to aid consumers in making informed decisions. While interest rates vary, the British government has called for a maximum limit for interest rates. Any company offering credit to consumers must have a consumer credit license from the Office of Fair Trading.

Britain’s Credit Action reported on the prevalence of ads for payday advance loans on Facebook. Due to U.K.’s strict laws on advertising for credit, the Facebook ads for payday loan lenders are in violation of British law. Any ads – print and television – or websites for consumer credit must feature the full name of the lender.

Credit Action asserts that lenders must show the typical APR or annual percentage rate in ads. In cases where the ad includes phrases like “poor credit history,” “low credit rating,” or “refused credit,” the APR must be shown. In addition, if the ad compares the terms of one lender to another, or offers incentives to encourage people to apply for credit, or shows typical APR prominently in the ad or on the site, the APR must be prominently displayed on the site, rather than hiding it. The typesize of the annual percentage rate must be at 1.5 times larger than the typesize of other information, including comparisons, incentives, references to poor credit, etc.

Australia

Australia’s Ministry for Financial Services announced a reform to include a national cap on short-term contracts offered by payday lenders for loans for $2,000 or less. If legislation passes, lenders may only charge up to 10 percent of the amount borrowed.

The reform will change the National Consumer Credit Protection Act of 2009. Proposed legislation will prohibit any refinancing on small contracts. Lenders of payday advance loans and other short-term loans must disclose to consumers the availability of other options. Payday loan stores must inform consumers about options while Internet-only sites must provide a link to the ASIC site.

Australia’s Consumer Action Law Centre proposed a natural interest-rate cap for consumer credit at 48% APR. The number of lenders of short-term loans has increased by almost 10 times since 2002. In Australia, loans with an APR of 400% are commonplace, hence the action of the Consumer Law Centre.

Do you want need a payday advance loan? Apply for a payday loan:

10 Broke Celebs Who Need A Payday

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Even the famous can find themselves in debt. In fact, it happens more often than you might think! While many celebrities enjoy a lavish lifestyle of mansions, fast cars, and elegant wardrobes, not all of them can afford it. Whether they simply fall on hard times or go beyond their means, even popular people in our society can end up looking for a payday loan. Wondering who? Here are a few of the celebs who could be applying for a loan.

1. Chris Tucker

Chris was unfortunate enough to be caught in the housing market crash, according to the Associated Press. SunTrust Bank claims that the comedian still owes well over $4 million on the house that he bought for $6 million – but the house has depreciated drastically and is currently appraised at just $1.6 million. While some speculate that he may just be letting the house be foreclosed upon to avoid paying more than its current worth, this is an actor who might just benefit from a payday loan.

2. Bow Wow

This former child rapper is grown up now, but that means he has financial worries, according to TMZ. The young star owes the IRS a chunk of cash, which was the reason a tax lien was filed against him in the state of Florida. Apparently the rapper didn’t pay over $91,000 from back in 2006. While he may have some savings, that’s a lot of money, and Bow Wow may find himself looking for another way to pay the bills soon.

3. Brooke Mueller

Despite a million dollar settlement in her divorce from Charlie Sheen, and a whopping $55,000 a month in child support, Mueller was filmed in a pawn shop, trying to hawk some jewelry. That’s a sure sign she could use a payday loan to help make ends meet.

4. T-Boz

This TLC singer was a rising star for a while, but recent reports indicate the singer isn’t doing so well these days. She’s reportedly filing for bankruptcy, owing over $700,000. Despite having multiple Grammy Awards, four multi-platinum records, and plenty of top singles, T-Boz doesn’t get much in royalties, and the mortgage payments on her home look to be pretty high. In situations like this, sometimes you need a little financial aid.

5. Toni Braxton

It may seem that celebrities have it all together, but Toni Braxton is another example of a star who went a bit too far and is now in a monetary crunch. With outstanding taxes owed to the IRS and over $50 million in debt, the celebrity recently filed for bankruptcy … for the second time. While it’s a good idea to stay on top of your lifestyle to prevent the need for bankruptcy, sometimes a loan can help you stay afloat, and it sounds like Toni might have need for one in the near future.

6. Mike Tyson

Famous for his years of boxing championships, Mike Tyson is not nearly as good with finances as he is with his fists. He filed for bankruptcy in 2003, despite having made over $300 million throughout his career. At the time of his bankruptcy, Tyson reportedly owed $27 million. With kids to support still, it wouldn’t be surprising if he still needs an emergency cash infusion sometimes.

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7. Britney Spears

Fortunately, this young celebrity has been working hard to get things back under control, but back in 2008, she had virtually nothing. She’d spent most of her money on living the good life and was not in a good financial position. However, according to US News Money, the singer is getting back on her feet with the help of loved ones. Still, she might want to keep in mind that in an emergency, especially with two small children, a payday loan is a good way to avoid problems.

8. Randy Quaid

Randy Quaid is best known for being Dennis Quaid’s brother, but he’s had his share of success. According to the Associate Press, the actor sued his financial advisor in 2010 for stealing, but he was in trouble long before that. He previously filed for bankruptcy after finding himself in debt for $1 million.

9. MC Hammer

MC Hammer made it big as a rapper, with a Forbes-estimated income of $33 million in 1990. All that went away, however, when he overspent on racehorses and cars. According to CNN Money, the rapper filed for bankruptcy in 1996, and we haven’t heard much from him since. He may very well need a little financial boost these days.

10. Dustin Diamond

The former Saved by the Bell star is reportedly being sued for around $2,000 in unpaid utility bills. That sounds like the perfect reason to consider an emergency cash source. This isn’t the first time the actor has been in financial straits, though. He’s also faced losing his home before to foreclosure and has had other debts to deal with.

One of the biggest benefits of applying for a payday loan online is that no one knows you needed one … a big boon for broke celebrities who value their privacy!