The Future of Indiana Payday Loans and A Look At Three Popular Lenders
Payday lending is perfectly legal in Indiana. It hasn’t been banned. As a matter of fact, they are very regulated. They are so regulated that the government, the state, cities, organizations and each citizen are all battling over new regulations that are working their way through the judicial process.
As of 2002, there was a maximum allowed limit of $605 that could be borrowed at any one time with an APR of 391% and lenders couldn’t charge more than 15% for the loans. Lenders are not allowed to give a customer more than twenty per cent of their monthly income. This was all aimed at protecting the borrower.
Now, there is legislature being proposed to raise the limits on the loans to between $605 and $1500 with a grossly high APR being touted as a ‘just barely legal loan shark amount’. They also are offering a $4000 amount for a title loan that can be obtained by putting a vehicle on the line. These loans will have longer repayment terms and higher, possibly max at 36%, fee for the loan which will be up from 15%.
Lawmakers feel that by providing loans with higher amounts to people with bad credit, they are presenting these folks with a once-in-a-lifetime opportunity that no other resource will ever give them. They are giving them the chance to start fresh and rebuild that credit score. A lot of skeptics think this move is going to bite the government right in the butt because a majority of the citizens can’t pay the loans at the current rates.
There are still a lot of pluses to Indiana payday loan regulations. They seem to be one of the better states as far as their payday lending actually. They are not allowed to get more than two loans at a time. If they get a second loan, they each need to be from different providers.
Currently, the lenders cannot charge more than a one-time fee of $20 for insufficient funds from the borrower. Lenders are not allowed in the state of Indiana to bring criminal actions against borrowers for not paying the loan payments.
The payday loan should be paid back in a lump sum within fourteen days of taking it out. There are no rollovers allowed, but they do let you do three extensions provided you believe you can pay it off on time. After the extension periods are done, the lender should offer the borrower an extended payment plan not including any fees that they didn’t agree to when the loan was taken out initially. There is a ‘cool off’ period between loans after the sixth consecutive loan of seven days before another loan can be taken out.
Most of the payday lenders in Indiana seem to have pretty good reputations. A lot of them seemed to be ranked in the high 4 to 5 / 5* rating. That says a lot because if people are getting caught up in debt cycles, it really wouldn’t be prudent for them to then turn around and say what a wonderful experience they had with that particular facility. Probably with the rules that are set forth to protect the borrowers, lenders aren’t as free to do what they want and they actually develop respect for their customers.
THREE PAYDAY LOAN STORES IN INDIANA
These three payday loan stores were chosen as they had very positive websites, particularly Allied Cash Advance. They all seemed genuinely interested in helping the borrower and doing what might be in their best interest.
Allied Cash Advance
Must be eighteen years of age or older. You can go into their store or you can do the application online whichever is more convenient. They require that you have a government-issued ID, social security card, a verifiable checking account, proof of income/pay stub, a working phone. They will approve anywhere from $50 to $605 for the loan amount with a fourteen day term. The process is quite simple. Come in to fill out quick application, sign final loan paperwork, receive the money before you leave the store. Takes just a short period of time. They will customize the loan per your needs and make the payment schedule according to what’s convenient for you.
A1 Cash Advance
Must be eighteen or older. They are also offering that you can come into their store or do the application online. They require a government-issued ID, verifiable checking account plus a check that will be made out for the loan amount plus fees, social security card, proof of income. They will approve up to a $605 loan amount with a fourteen-day loan term. Their finance charges vary depending on the amount that you borrow. When the payment is due, you can come in and cash out the check or they will deposit the check.
Check N Go
The three of these were pretty impressive. They all had their own little nuances that in some way were a benefit to the borrower and could potentially help the borrower from falling into that trap of the debt cycle. That’s what a payday lender should be about. They shouldn’t be just about bringing money into their store just to bring money into their store at the ruin of another human being. If these places were truly about what they need to be about, what these three places seem more about, folks would actually be getting the assistance that they so desperately need out of them.
HOLDING LENDERS ACCOUNTABLE
Indiana as a whole is pretty impressive in the payday category. They really are outstanding in keeping everything in line. In all truth, it doesn’t just benefit the borrower. If the lender would really think about it, they’re going to get paid a lot faster if things are regulated more and the borrower can actually keep up with the payments.
The lenders are being held accountable for any violations by the state in order to protect Indiana’s residents. According to the state law, any violation that is committed by a lender will have the lender being held liable and that lender will lose the possibility to collect any of their payments in the future. Some instances will be met with $1000 and even some still will get both. The organization that overseas the payday loans for Indiana is the Indiana Department of Financial Institutions. They handle any complaints, inquiries, questions, information requests, anything at all.
Officials in Indiana offer that there are options aside from payday loans that may be less costly and should at least be considered. They like to try to dissuade people from obtaining these loans as much as possible because of the possibility some people have of getting stuck into a financial whirlwind that they can’t recover from.
- Local government assistance
Low-income Energy Assistance Program and the Community Harvest Foodbank are two options in Indiana that offer support to families that are having a difficult time. Energy assistance will help with utility bills and the food bank, of course, helps out if you’re having trouble with buying groceries for yourself or your family.
- Credit Card Cash Advance
Officials offer that if you do already have a credit card, it may be less costly than a payday loan to
- Side gig
If you have a full-time job and find that you may have a few extra hours in the evening or on the weekends, it would be so much better to earn a
The state really wants to keep a handle on the payday loans and make sure that its citizens are not getting in over their heads. They want their economy to thrive and not have folks who are in poverty-type situations. It’s really amazing how much they watch over the lenders and the borrowers to keep everything running smoothly and legitimately. It’s actually very refreshing and needs to happen more often in other states. Everybody needs to take an example from Indiana and run with it. If they would, we maybe wouldn’t have people suffering financially so much. Indiana seems like it would be a cool place to check out actually.