Payday Loans in New Jersey
An overview of your rights if you owe a payday lender
An Overview of Your RightsNew Jersey is one of those sixteen states in the United States of America that have completely banned payday lending. As per New Jersey payday loan laws, it is a criminal offence for lenders to offer extremely high rate short term cash advances to the residents of this state. If you are residing in this state and have a complaint against a specific payday loan company (including those who operate their business from Internet), you should contact an attorney who may be able to help you recover money and stop the lender from collecting any debts due. Small Loan Rate Cap The New Jersey Consumer Loan Act covers these loans, and the interest rates on short-term cash advances or just about any form of loan must be agreed to by a contract, but in any case, the rate must not be excessive and the fees must be reasonable. If a lender offers you a loan and then charges an interest rate higher than you think is fair you have the legal right to file a lawsuit against them and ask for compensation. Check Cashers Cannot Offer Cash Advances New Jersey has also prohibited check cashers, even if they are duly licensed to operate their business in this state, from issuing cash advances on a post-dated check. Only banks and other licensed lenders can offer short-term or long-term loans but even they cannot charge more than 30% per annum as interest rates. Also, a lender cannot cash a check for someone who does not have an account at that bank. What If The Lender Operates The Business From Internet? New Jersey payday loan laws are applicable to all those lenders who either have their offices in this state or are running their business from Internet only. However, here it is very important for you to understand that online payday loan lenders are often very difficult to locate and it is not at all an easy task to take legal actions against them despite the fact that there are provisions for the same. Internet lenders often try to attract consumers by offering them easy loans and by claiming that the New Jersey laws do not apply to them because they are not based in that state. You are strongly recommended not to borrow loans from them because it can turn to be very risky and expensive. If they are harassing you, you can tell them that you are well aware of your legal rights and that you have the right not to be harassed as per the Fair Debt Collection Practices Act. If you have any question, you should contact a lawyer from Tomes & Hanratty P.C..
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