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Idaho Payday Loans - Idaho has solidified its opinion on payday loans in the state, with educational data

Idaho State Map
Idaho State Map
The practice of borrowing a few dollars until payday is not a new concept in any way, shape or form, but it had not become a burgeoning part of the way that we do business until recent years. With economic recession comes the need for more creativity in financial matters. As we have all seen, corporations and government miraculously discovered new and creative ways to bridge gaps in finances when they need to; cash advances (or payday loans) are now doing that "bridging" for the average consumer. Recognizing that this method of borrowing has become more and more popular, and more and more needed by consumers all over the world, the state of Idaho has determined that it will not fight against the provision of these types of loans to consumers, the state will simply seek to provide its citizens with a proper education on how to best take advantage of all available options in short-term financing. This education is being conducted in conjunction with proper regulation of the industry itself; requiring licensing for any payday loan services that wants to operate inside of the state lines.

Everyone that has ever had a financial setback or shortcoming while in between paydays, can see the value in payday loans. This is why the state of Idaho has set out to provide an educational outreach to consumers who find themselves in tight financial situations without direction. Realizing the value of cash advance services, the state has issued educational information that is accessible by all citizens, either in person or over the Internet. The data that the state has published expresses the rights and responsibilities of both the borrower and the Idaho payday loans company offering the cash advances. The state has said that their goal is to promote financial well-being amongst the citizenry by making sure that everyone is well informed as to all emergency financial options. Within the state of Idaho, the Truth in Lending Act and the Idaho Credit Code together reflect the requirements on behalf of cash advance services to provide full disclosure to consumers prior to entering into any loan arrangement; these requirements dictate that companies offering payday loans in the state of Idaho must be licensed by the state prior to offering any such loans, must not lend out more than $1000 to any one client at one time, must clearly post their fee structure - so that consumers are fully aware of the terms of the loan before accepting the cash, and must make the borrower aware of any penalties or other fees that could become attached to the original loan.

Idaho State Flag
Idaho State Flag
Another point dictated by the state, is that any Idaho payday loans services attempting to do business with the consumer, has to reach an agreement on interest rates to be charged on borrowed monies prior to any exchange of cash. This means that higher interest rates are possible in some cases, but the consumer has the power to accept or not accept any of these terms prior to signing any loan agreement. Even after a loan agreement has been signed, the consumer, by law, has until the end of the next business day (after the loan was made) to reverse and rescind the agreement at no cost - as long as the cash has not been touched or can be immediately returned. While the interest rates do not carry set requirements laid out by the state, there are various laws of the United States that come into play to protect the consumer from extreme cases of usury. Knowing that these laws are in effect, the state has not set any limitations on interest rates, as the consumer is already protected.

Idaho payday loans
Idaho payday loans
A few final key points that govern the issuing of Idaho payday loans, which also include; penalties for any cash advance service that allows anyone borrower to exceed the $1000 limitation, penalties for any lender accepting real property or any type of collateral for payday loans, penalties for any lender allowing a payday loan to be renewed more than three times in a row ( the state has made it very clear that after three renewals, a payday loan must be paid off in full prior to any additional loans being made), penalties for any lender who imposes additional fees on a borrower - that were not disclosed up front in writing and agreed upon by the borrower, and finally, the state has posed serious consequences for any lender who attempts to engage in unfair or deceptive practices in their advertising and marketing campaigns or in their day-to-day business conduct. These measures have all been put into place to protect the consumer from the handful of unscrupulous lenders who would seek to take advantage of a consumer in a time of need. A major benefit of developing these rules comes in the form of fewer of these illegal operations having access to our citizens. With greater regulation and greater oversight comes a situation of separating the strong from the weak - leaving only substantial and viable operators to handle the needs of the consumer properly.