Few Payday Lenders In Hawaii
Hawaii boasts the nation’s highest APR at 459%, but it also has the lesser need than most states for folks who need to take them out. Only 1.4% of Hawaiian households use payday lending compared to the national average of 2%.
Hawaii has just 9.3% of their population below what is considered the federal poverty line which equals out to approximately 18,000 members of it’s society. That’s not at all diminishing the need that those 18,000 folks have by any means or indicating that there is not a necessity for the payday lenders to set up shop.
There are, however, fewer payday lending stores per capita in the state than any other, and Hawaii does not heavily regulate the lenders. They do not allow car title lending, though.
A payday loan in Hawaii is, of course, a shorter-term loan that a consumer takes out for a period from three to thirty-two days. They don’t have the fourteen-day or two-week rule that most lenders have. The max allowed for someone to borrow is $600 and the finance charge begins at $17.65 for a loan borrowed in the amount of $100. The APR of 459% is fixed and cannot exceed that amount.
Folks are allowed to take out one loan at a time. They are not allowed any rollovers or extensions. They will not extend a loan to a customer who has an existing payday loan with another store or any type of similar 32-day or less credit transaction from any business whether it be online, with a bank or with a credit union.
There are no multiple loans allowed at the same time. They do allow multiple loans within a business but they must be spaced out throughout the year. After having borrowed for four consistent times in a row, the lender will offer an extended payment-type plan in order to discourage repeat borrowing and the client getting themselves in a bad debt situation.
TOP LENDERS FOR PAYDAY LOANS IN HAWAII
This lender provides services over twelve different areas in the state of Hawaii and offers online services as well. The most popular way to disburse payday loans is through MicroCredit Advance which is a cash advance service that is made available to consumers who qualify. Their loans range from $100 to $510 with additional finance fees. Loan limits depend on your current financial abilities. Decisions are not credit-based, however, they will check to see if you have outstanding debt with other payday lenders through a service TeleTrack which will determine if you are eligible or not.
Payday Hawaii requires two pay stubs instead of the standard one. They also want evidence of an active and valid checking account with most recent bank statement, residential or cellular phone bill, valid photo ID, Approval takes minutes. When you go into the store, you can walk out with cash within half hour. If done online, you will have it deposited into your account within the next business day.
Due date is with your next pay date with this lender. After you have received and paid off four consecutive payday loans, they allow a payment plan up to ninety days where you will need to make payments every payday without fail. Late fees will be accrued.
This lender is a little less involved. They offer eight hundred locations all throughout North America. They pride themselves on their level of customer service as making the customer’s experience very convenient and simple. They are a self-described leader in the payday lending industry who provides an affordable solution to folks who have no other answers. They do not base decisions on credit either. It is strictly based on the income that you have and your current financial situation. You just need to supply proof of income, verifiable bank checking account, government ID, active phone number. When payment comes due, they will either deposit your check or you will need to come in and cash the checkout.
Hawaii Check Cashing
This is a locally owned and run organization who calls themselves “the number one source of cash when you need it”. They pride themselves on providing very secure and discreet services so that your personal and financial information is protected. They base their determination and the amount of the loan on your income and situation of your finances. Decisions are not based on credit. Any credit type is acceptable, even if you have been through a bankruptcy. They offer their loans ranging from a minimum of $20 upwards to $600. They require a state-issued ID from Hawaii. They also require the basics of a verifiable bank checking account, proof of income/pay stub, and valid phone information.
There are not a ton of payday lenders in Hawaii and the ones that are there seem to be rather strict in their policies. They seem a little bit more business focused than they are customer focused and that may be because there are so few. They know that they have something going on that not many people do and they can run it as they see fit. With Hawaii not having real stringent regulations, they kind of can. All in all, they just want to get paid back. At the end of the day, when you loan somebody money, isn’t that the obvious objective?
Probably, though, there needs to be more guidelines put in place where the lender can focus a little bit more on whether or not these people are going to be able to pay the money back. Then maybe they wouldn’t be lending to people who are sure to default or who they know are going to default.
In the state of Hawaii, the Department of Commerce and Consumer Affairs is responsible for any issues that arise with payday lending. All inquiries, questions, complaints or discussions will go directly through their office.
It is not allowed for a lender to take any kind of criminal action against a borrower who finds themselves unable to pay. The only exception to that rule is if a borrower chooses voluntarily to close an account before the loan has been paid in full, or if the borrower asks the bank to stop the repayment process on purpose.
OPTIONS OUTSIDE OF PAYDAY LOANS
There are a few organizations that offer help in encouraging folks to steer clear of the payday loan route.
Hawaii Low Income Home Energy Assistance Program
This programs’ focus is to help folks who are on a low income or are disabled or the older population with their heating as well as their cooling using financial assistance.
Supplemental Nutrition Assistance Program (SNAP)
These folks are set up to help people who are finding it difficult to buy groceries each week. They provide individuals and families with food assistance.
Hawaii Consumer Assets
This program helps citizens bring themselves to a point where they are economically self-sufficient. This seems like it would kind of be almost along the lines of a credit counselor. It would be very beneficial in educating the population on how to deal with their finances and how to budget and get themselves back on track.
It is really impressive that Hawaii is able to take care of its people in such a way that they can claim such a low poverty level. The more they work towards educating and aiding the people within the communities, hopefully the further down that poverty number will go. Maybe we could all take an example from their rulebook.
David is a financial expert who graduated from the University of Fordham (Master in Finance) in 2001. He has 10+ years of experience in private equity and wealth management. With strong expertise in senior-level financial planning, personal financial analysis, and mortgages, David knows his way around personal finance. Before working at CCR he used to be a financial analyst at McKinsey.
- Cash Management
- Trade Finance
- Working Capital Finance
- Student Loans
- Wealth Management