Payday loans are a sigh of relief during emergencies and when your payday is far. You get the loan immediately after you fulfill their requirements. Therefore, it has become quite popular. For example, you need $2500 urgently but you will get the payment after a week. So you can get the loan and return it once you get the pay.
This short-term loan agreement lets you deal with emergencies easily. Furthermore, the shorter time you set for returning the amount, the less you will get the interest rate. If you do not pay the loan, it will grow because of the regular interests.
So from where would you get this loan? If you do not want to move out of your house, there are online options like bluelineloan.com. You can go to their website and apply for a loan. According to bluelineloan.com, you can get the loan on the same day with an instant payday loan option. Furthermore, they offer plenty of different payday loan types. So you can get the one that fits fit for you.
For example, you can apply for an emergency loan and there are same day loans too. Moreover, you will also get some other options like “Get up to $5000 Today” and Installment Loans etc. And that’s not all, you will have more than 20 different types of loans and you can apply online. You will get the amount after you fulfill the document requirements.
Rules to follow
However, the rules are not only for you but also for the lenders. And you must know these rules before you approach any lender. If the lender does not follow the state rules, he will lose his license. These rules include;
1. Agreement for loans
There must always be a written agreement before giving and receiving loans. This agreement defines all the obligations and rights that the lender and the borrower have to follow. Furthermore, it includes all the necessary information about the borrower too.
2. Agreement content
The content of the agreement must include;
- Information about the rights of a borrower
- The cost of borrowing information must be mentioned in a table form and on the very first page of this contract
- This cost of borrowing must be expressed as APR i.e. the annual percentage rate
All of this information should be written clearly and should be easy to see and understandable for the borrower.
3. Some restrictions for the payday lenders
The written contract is there to protect the rights of both parties. However, if the lender changes the content, he will be at an advantage. Therefore, the state has some set rules and that’s why the lender cannot,
- Charge you more than 15 dollars on every 1000 dollars and this includes all the fees connected with the loan. For example, if someone applies for a loan of $3000, he will only have to pay a maximum of $45. Not even a penny more. So if someone asks you more than that, he is doing a fraud.
- The lenders are not allowed to offer anything additional along the loan amount in the contract. For example, any sort of insurance.
- The advance amount that should be paid by the borrower should not be more than half of his net income.
- A loan agreement cannot be ended before the borrower is likely to get his paycheck. Or money from any other source (that he says).
- The contract cannot be extended from the original termination date.
- A person cannot be granted a payday loan if he already has an outstanding payday loan balance.
4. Keeping the copy of the agreement
Both parties must always have a copy of their agreement. In case, the borrower loses it and asks for another copy, you are liable to provide him. It is free for the first time. Moreover, you must give it to them immediately on that day. And if it is not a working day, on the next working day.
If someone makes three agreements with you within 63 days, the rules change for the 3rd contract.
- Firstly, the payment plan for the third loan must be extended.
- Installments should be divided equally after determining the paychecks.
- If someone makes a prepayment, you should adjust all the remaining schedules. So the agreement will change and you must provide the new copy too.
6. Providing advance
Before agreeing, you must inform the borrower about the different other options that they can choose. Moreover, the advance should be given in the way they want.
7. Contacting the employer
If the borrower is an employee and he allows, you can contact his employer to confirm his net income. Likewise, for an employer, you can ask his employees. This will help you in scheduling the payments and designing an efficient agreement.
8. Getting the amount
If your borrower gives you a partial amount or full at once, you must receive it from him. You cannot say no to earn more from the interests. Moreover, you cannot ask for any penalty fee or prepayment charges too.
Some rules for remote lenders
If you are working remotely i.e. through an online platform or phone, you have to follow certain other rules. These include;
- You must tell the borrower about the information related to the cost of borrowing. Moreover, all the needed information about your main office. And if you have any educational material like posters, tell them about it too.
- Make sure that the agreement is available on your online platform for the borrower. Moreover, the borrower must be allowed to print it.
- You must also make sure that you have some sort of proving that the borrower has his consent before you pay the advance amount.
- Once the borrower signs the agreement, you must provide them access to the advance amount within an hour.