Oklahoma Cash Advance Consumer Guide
Payday loans also know as fast cash loans are one of the easiest and most convenient types of short - term loans available on the market. However, payday loans also have a well - deserved bad reputation and should be limited to a very few select circumstances where these types of loans are appropriate.
Payday loans are considered easy and convenient quick loans because they can be obtained from many different lenders and because there are minimal qualifying requirements. There is no need to fill out extensive paperwork and complete arduous applications and you do not have to have a good credit score or even any credit history in order to apply for and receive a payday loan. Instead, you can typically get a loan very quickly just by providing your bank account information and by providing proof that you have a job.
However, payday loans also have some limitations and downsides. One issue is that payday loans are intended only to provide very short - term cash. They get their name because they are supposed to hold you over until you get paid so you can deal with immediate cash crises, and they typically have a term of only about two weeks although some can have shorter terms and some can have longer terms. Once a payday loan comes due, many people are forced to extend the loan or take out another, which can result in falling into a trap that is hard to escape from.
The other major downside to payday loans is that they have a very high annual percentage rate (APR). APR refers to the annual cost of borrowing money or the amount that you pay to take a loan over the course of a year. While you do not take a payday loan for a year, the best way to understand the costs of these loans is to look at the fees and charges in terms of APR so you can compare them to other types of loans such as credit cards and mortgages, which usually have an APR of less than 30 percent and less than six percent respectively.
The APR on payday loans, on the other hand, often works out to more than 450 percent per year. This is because you are charged a high fee to borrow a small amount of money for a short time. This cost is very high and before you take out a payday loan and take on the expense, you should ensure that taking the payday loan is really a legitimate financial necessity in your situation.
Oklahoma Payday Loan Laws
IN Oklahoma, lawmakers have passed certain limitations and imposed certain regulations on payday lending. Payday lending is addressed in Oklahoma Stat. Tit. 59 section 3010 and the rules address many aspects of the industry.
One of the limits placed on Oklahoma fast cash loans is that no more than $500 can be lent out in a payday loan. The law also restricts the length of the loan term, and the term of the loan must be between twelve days and 45 days. Rollovers are not permitted and there are only two loans permitted to be outstanding at a time.
Fast cash Oklahoma lender laws also limit the fees and finance charges that can be imposed on those who take out payday loans. The maximum finance charges are $15 for every $100 borrowed with an additional $10 charge on every $100 advanced over $300. This works out to an effective APR of 390 percent on a 14 - day loan, which is still very high but at least there are some limits intended to protect the public.
Stay Educated about Payday Loans
Learning the truth about payday loans and understanding the laws in Oklahoma is very important so you can be informed about what your rights are if you are considering a payday loan. Taking a payday loan can make sense in certain financial emergencies and in situations where you really need money right away, but you need to be prepared for the financial implications of taking such a loan. Being aware of the legal protections helps you to better understand the responsibility you are taking on.