Minneapolis, MN (Vocus) July 21, 2009 –-
The fast cash advance loan industry is being carefully considered by various state legislatures nationwide for the high interest rates and short loan terms. Quick cash lenders argue that because the loans are for such a short term, the high interest rates are necessary in order to pay for operating costs. FastCash.org, a fast cash online lender, points out the specific regulations for the state of Minnesota.
Within the state of Minnesota, quick cash loans are legal. Minnesotans can take out a payday cash loan in the maximum amount of $350. For some states, this is up to $1,500. The maximum loan term is 30 days with the rates and fees not exceeding the following limits: $5.50 for a loan of $0-$50; 10% plus $5 for a loan of $51 to $100; 7% (with a minimum of $10) plus $5 for a loan of $101 to $$250; 6% (with a minimum of $17.50) plus $5 for a loan of $251 to $350.
If the borrower defaults on a payday cash loan, the [fast cash online lender or store front lender can charge 2.75% per month. In addition, the finance charge for a 14-day payday cash loan in the state is $15 for a $100 loan. Lenders can also charge a $30 non-sufficient funds fee for returned checks. Although there is not a specified number of outstanding payday loans that any one borrower can have at one time, a borrower cannot repay an existing loan with proceeds of another loan from the same lender.
As lending practices have faced tough scrutiny in many states, and laws have been changed to lower interest rates, many payday loan stores are closing because they are unable to keep up with their overhead costs. However, as more fast cash loan options are becoming available online, borrowers can turn to these websites to meet their needs.