Added State Licensed Lenders Page

Posted by Online-Payday-Loans.org on Dec 14, 2010 in Updates

Added State Licensed Lenders Page

Today we added a State Licensed Payday Loan Sites by State page.

It lists online lenders who are either state licensed (or otherwise operating legally) for 51 states.

State licensed lenders are more likely to adhere to state and federal laws regarding loan financing terms, debt collection practices, privacy protection, etc., increasing the chances that you will pay less and enjoy a safer transaction.

For each state, we also included the maximum finance charge for a 14-day $100 loan as specified by state law. Unfortunately, there are loopholes in certain states that allow payday loan sites to charge more than your state maximum…

For example, some states don’t require online lenders to be licensed in their state, just that they be legally licensed in any state. This means that the loan transaction would follow the laws of the state the lender is licensed out of, not the laws of state in which the borrower resides. An online lender licensed in a state with no limit on finance charges could charge more than the maximum finance charge set by the borrower’s state law and still be operating legally.

Other examples include handling the loan transaction as a consumer installment loan instead of a payday loan or by licensing the lender as a credit service organization (CSO) instead of a payday lender. Both allow lenders to charge more than the maximum for “payday lenders” set by state law.

We’ve included this information in our list as well to make your difficult loan decisions as safe and easy as possible. If you find any errors in the list or can think of ways to improve it, please let us know. Thank you!

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