Rates & Fees
The rates and fees that are associated with the payday advance will ultimately be determined by your lender in accordance with federal law and state regulations. DirectCash.Me works hard to ensure that each of our lenders works within the boundaries of these laws and regulations. We also ensure that you have plenty of resources and information that pertains to short term lending available to you so that you can make the best decisions possible and handle any issues that may come up.
Cash Loan Basics
We work hard to make sure that you have plenty of documents, articles, resources and links available to you so that you can enjoy the best possible borrowing experience through DirectCash.Me. Some of the information is about the various rates and fees that you can expect to pay in correlation with your loan as well as the best ways to use these loans responsibly. We have also included links to the Federal Trade Commission and Consumer Financial Protection Bureau which are two agencies responsible for creating and enforcing laws in regard to the short term lending industry. This includes ensuring that you are not discriminated against as it relates to obtaining credit.
Implications of Late Payment
If you are unable to repay your loan on time for any reason, please contact your lender as soon as possible. Late payment fees are set by your lender in accordance with the regulations in your state, and lenders also determine their own policies in regard to how they handle late payments. There are several courses of action that your lender may take, so you should check your loan agreement for specific information that pertains to your lender.
Implications of Nonpayment
Financial Implications – The cost associated with short term loans of up to $500 ranges from 15% to 40%, and these costs may climb even higher for loans that are greater than $500 in value. Before you sign your agreement, you should check these fees carefully. Similarly, there may also be charges applied for nonsufficient funds. As an example, if your $100 loan is 15 days past due, you may be assessed a charge that is equal to 10% of the principle balance as well as a $25 nonsufficient funds fee.
Collection Practices – Many of the lenders in our network stick with in-house debt collection practices rather than selling your debt to an outside collection agency, and they will never sue you or threaten criminal charges against you. Your lender may attempt to collect your debt via email, postal mail, telephone, or text message, and they may offer you a settlement so that you can repay your debt over time. All of our lenders are required to adhere to the Fair Debt Collection Practices Act which protects you from harassment. You can contact your lender for more information about its specific policies.
Impact on Credit Score – Lenders are within their rights to file reports with the three major credit bureaus—Experian, Equifax and Transunion—if you fail to repay your loan. This negative remark will lower your credit score and may make it impossible for you to obtain short term loans or other forms of credit in the future. However, once you have repaid your debt to your lender in full, this will be reported to the credit agencies and the negative remark will be removed from your credit history.
Renewal Policy – Some of the lenders in our network participate in what is known as automatic loan renewal. Simply put, if your loan is beyond a specific amount of time past due, your lender will rollover your loan. This may be offered to you in addition to options like repaying your loan in full at a later date or repaying your debt in installments over time. The minimum term for an automatic renewal is 15 days and you will likely be required to pay renewal fees and additional interest charges.
Disclosure of Fees Including the APR
The APR associated with your loan stands for the annual percentage rate, or the amount of interest you will be expected to pay in relation to the length of your loan term. Most of the time, the APR for short term loans ranges from 260.71% to 1825.00%, though this can vary somewhat. Although the APR associated with short term loans is higher than that associated with other forms of credit, it is still considerably less than the charges associated with overdrafts and nonsufficient funds. Please see below for a cost comparison.
• Nonsufficient Funds with Bounced Check Fee: $45 total charge, 1173.21% APR
• Overdraft Fee: $40 charge, 782.14% APR
• Late Fee: $20 charge, 521.43% APR
• Short Term Loan: $10 charge, 260.71% APR
All of the lenders in our network must adhere to not only the federal laws associated with short term loans, but also with the regulations that are put into place by many states. Individual states typically regulate things such as the maximum loan amount, the maximum that lenders can charge, the number of loans that can be outstanding at any given time and even the late fees that lenders might charge. Listed below are the individual states, the maximum loan amounts in those states and the regulations that apply.
Alabama - $500 – Finance charges may not exceed more than 17.5% of the total loan amount.
Alaska - $500 – Finance charges may not exceed more than 15% of the total loan amount, and lenders can charge a discretionary $5 origination fee.
Arkansas - $400 – Finance charges may not exceed 10% of the total loan amount and additional charges, such as those for origination fees, may not exceed $10.
California - $300 – Finance charges may not exceed 15% of the total loan amount.
Colorado - $500 – Lenders are permitted to charge a $30 maintenance fee for each month that the loan is unpaid. The APR associated with loans may not exceed 45%. Finance charges may not exceed 20% on the first $300 of the loan and 7.5% on amounts between $301 and $500.
Delaware - $500 – There are no further regulations in Delaware.
Florida - $500 – Lenders may charge a reasonable verification fee at their discretion. Finance charges may not exceed 10% of the total loan amount.
Hawaii - $600 – Finance charges may not exceed more than 15% of the total loan amount.
Idaho - $1000 – There are no further regulations in Idaho.
Illinois - $1000 or 25% of Gross Monthly Income – Finance charges may not exceed 15.5% of the total loan amount.
Indiana - $50 Minimum or $500 Maximum – Finance charges may not exceed 15% of the first $200, 13% on amounts between $251 and $400, and 10% on amounts between $401 and $500.
Iowa - $500 – Finance charges may not exceed 15% for the first $100 of the loan and 10% on the remaining amount of the loan.
Kansas - $500 – An administrative fee may be charged at the lender’s discretion. Finance charges may not exceed 15% of the total loan amount.
Kentucky - $500 – No more than two loans are permitted at any given time and these loans may not exceed the state maximum. Finance charges may not exceed more than 15% of the total loan amount.
Louisiana - $350 – Finance charges may not exceed 16.75% of the total loan amount.
Maine – There are no loan limits or state regulations in Maine.
Michigan - $600 – Finance charges may not exceed 15% of the first $100, 14% for the next $100, 13% for the third $100, 12% for the fourth $100 and 11% for the fifth and sixth $100. Administrative fees are also allowable.
Minnesota - $350 – Finance charges may not exceed 5.5% on the first $100, 7% for amounts between $101 and $250, and 6% on amounts between $251 and $350. Administrative fees are also allowable.
Mississippi - $400 – Finance charges may not exceed 18% of the total loan amount.
Missouri - $500 – Any finance charges or interest is allowable as long as the total charges do not exceed 75% of the total amount of the loan.
Montana - $50 Minimum and $500 Maximum – Finance charges cannot exceed 36% of the total loan amount.
Nebraska - $500 – Finance charges cannot exceed 15% of the total loan amount.
Nevada – No More than 25% of Gross Monthly Income – There are no additional regulations in Nevada.
New Hampshire - $500 – Finance charges may not exceed 6% of the total loan amount.
New Mexico – No More than 15% of Gross Monthly Income – No additional regulations in New Mexico.
North Dakota - $500 – Finance charges cannot exceed 20% of the loan amount.
Ohio - $500 – Finance charges may not exceed 28% of the total loan amount.
Oklahoma - $500 – Finance charges cannot exceed 15% on the first $300 and no more than 10% on any remaining loan amount.
Oregon – No More than 25% of Gross Monthly Income – origination fees of up to $30 are allowable. Finance charges may not exceed 36% of the total loan amount.
Rhode Island - $500 – Finance charges cannot exceed 15% of the face value shown on the provided check.
South Carolina - $550 – Finance charges cannot exceed 15% of the total loan amount.
South Dakota - $500 – No additional regulations in South Dakota.
Tennessee - $500 – Finance charges may not exceed 15% of the total loan amount.
Utah – No minimum loan amounts or regulations in Utah.
Virginia - $500 – Verification and origination fees are allowable. Finance charges may not exceed 15% of the total loan amount.
Washington - $700 or 30% of Gross Monthly Income – Verification fees are allowable. Finance charges may not exceed 15% of the total loan amount.
Wisconsin – No loan limits or regulations in Wisconsin.
Wyoming – No Maximum – Finance charges may not exceed $30 or 20% of the principle balance, whichever is less.
There are some states in which payday loans have been made illegal. These are: Arizona, Connecticut, Georgia, Maryland, Massachusetts, New Jersey, New York, North Carolina, Pennsylvania, Vermont and West Virginia.
Arizona and North Carolina have allowed statutes and regulations to sunset.