Indiana Payday Loans - After careful review, Indiana opts to regulate payday loans as a valuable service
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The subject of Indiana payday loans has been greatly debated, speculated and even feared in some cases. What has to happen at some point is that we have to take a very careful look at exactly what cash advances can and will mean for us as individuals. In its simplest of terms, cash advances, payday loans or deferred presentment are simply ways of bridging a financial gap when we have an unexpected feel or emergency situation arise between paychecks. Everyone has had that experience of being midway through a pay period, and having suddenly come face-to-face with an unexpected hospital bill, urgent out-of-town trip or even the occasional forgotten anniversary or birthday. Payday advances serve the same purpose as going to a friend or relative for a few quick bucks to tide us over. In the state of Indiana, in 2004, payday loans became covered under the Small Loan Act of 2002 after extensive debate in the legislature. Many detractors wanted to have nothing to do with the industry, but due to their lack of real knowledge on the subject (having reported opinions and conjecture from second and third hand sources) legislation was ultimately enacted for the good of the state. The argument that won out was very basic; provide the consumer with a viable source of emergency funds, and educate them on the best options and uses of these types of services, while at the same time closely monitoring and regulating all of the companies that are operating in this venue.
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The state also imposed limitations on the interest rates that can be charged on Indiana payday loans; these rates range from 10% on loans between $410 and $500, 13% on loans of $251-$400, and 15% on loans of $250 or less. By placing a sliding scale on the interest rates to recharge for various size of loans, the state effectively eliminated some of the cost that would be incurred for the larger loans that might be considered more of a "severe emergency" type of borrowing scenario.
Indiana payday loans
After all is said and done, it is clear that the state is actively taking a role in the future of its individual and corporate citizens, being sure to provide adequate protection and monitoring on both sides. These measures have been taken after extensive reviews have all led to the same conclusion; that Indiana payday loans are worthwhile as a valuable cash access point for individuals, and as a thriving commercial industry. With the direction and legislation handed down by the state, operators who would attempt to run their business outside of the law, will be appropriately reprimanded, as will any individual that sets out to deceive providers of this valuable service - just as they would be if they attempted to rob any other established financial institution.