In Louisiana they limit the size of a loan to $350.00 for each loan and the loan can be for up to 60 days.
And I say each loan because a borrower can have more then one loan at a time.
The lender can charge an interest rate of up to 16.5% or $45 which ever is smaller.
If the borrower ends up defaulting on the loan, say his/her check. So in this case the lender can charge an interest rate of 36% on the unpaid balance during the first year and 18& of the unpaid balance in all subsequent years.
In Louisiana you cannot roll over your loans, meaning you can’t roll the debt from one pay period to another. However you can take out another loan.
This is how may people get caught in the payday loan debt cycle. Using one loan to pay another loan. A borrower can also pay 25% of the loan plus any fees the lender has – and pay that amount instead of paying the loan back – this is called an extension.
Again this option keeps the borrower in a payday loan cycle and the borrower will end up paying a considerable amount in interest for just one loan.
Also in Louisiana the lender is not required to post a notice informing any borrowers the terms of a loan. And because of that many borrowers have no idea what the terms of a loan are.
If your dealing with payday loan debt in Florida or any other state and your having difficulty getting out of your payday loan debt we can help you consolidate your loan into one low monthly payment.
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