It is possible to attain Virginia payday loans whenever you are in need of some money as fast as possible. These loans are available to anyone who has a job and has a checking account. The process is simple. You will bring in a paycheck and a personal check along with your identification. After filling out the paperwork and writing a check, you will receive your money. You will not have to go through a credit check and you will not have to go through a complicated acceptance procedure to get the loans you want to have.
Because of the high interest rates that are associated with all payday loans, there are heavy restrictions regarding the Virginia payday loans. These limit the amount that can be charged in terms of fees and interest on the loans you can receive. Other limits include the amount that can be lent and the duration of the loan. You are protected from certain legal problems if you cannot repay the loan and you are protected from making the bad decision to try and receive two of these loans at the same time. The end goal is to protect you from spending too much on a loan.
Limits on Fees
There are going to be a lot of fees and interest attached to your Virginia payday loans. This is to be expected of any payday loans since this is the nature of the business. Under Virginia law, the lender can charge no more than a $5 verification fee. The loan origination fee is not allowed to surpass 20 percent. The annual interest rate is not allowed to exceed 36 percent. Even with all of tehse restrictions, it is important to put things into perspective. You will be paying a possible $26.38 on a $100 loan for a duration of two weeks. This puts the APR you are paying on the loan at 687.76 percent. Another fee limit is on returned check fees which are capped at $25.
Limits on Loan Amounts
When you are looking to attain Virginia payday loans, your loan amount is normally based on how much you make. Regardless of how much you normally make, you will not be able to borrow in excess of $500. The only exception to this rule is if you are using your car title as collateral on a loan.
Limits on Duration
Another limit placed on Virginia payday loans is the length of time you will be able to have the loan. The loan is limited to a 14-day duration and cannot be extended or rolled over. This is done because the normal pay periods for most employment are either a weekly or bi-weekly pay period.
Protection from Multiple Loans
The state of Virginia bars you from borrowing from more than one lender at a time. If you successfully repay a loan, you will have to wait a day in order to get a new loan. You will also be required to wait a month and a half after receiving five loans to be able to receive a sixth loan. If there is a problem repaying the loan that forces you to enter a repayment program, you will have to wait for three months after the loan is repaid in order to get a new loan.
Protection from Legal Problems
Virginia payday loans also come with protection for the borrower. You cannot be pursued in a criminal court setting. However, the lender does reserve the right to take you to court in a civil court to legally demand payment. You will be responsible then for paying not only the loan, but court fees and lawyer fees not to exceed $250.