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Prohibition of payday lending industry in Connecticut

Today it is common for many American families to live from one paycheck to another one. It can be very difficult to get money from anywhere, if some emergency is happening, for example, your automobile breaks or your child becomes ill and needs expensive medicines. The number of such emergencies is actually endless. Positive news in this situation is that some options, like payday loans, can assist you to receive the needed sum of money quickly and without difficulties. A great amount of payday lending companies are working in the USA, but some States ban the operations of payday lenders. The State of Connecticut is not an exception. Payday lending industry is considered to be illegal there.

A resident of Connecticut is only allowed to borrow a short-term loan from the bank. The following guidelines for the small loans are established in the State. A lender can charge $17 for a loan ranging from $100 to $600. So an annual percentage rate on small loans equals 30.03%. If a loan amount reaches $1,800, the interest rate is decreased to $11. Additional interest rates can also be considered.

Under the state law of Connecticut any lending company and individual lender must receive a license, so that they can transfer money to a borrower’s account. Moreover, it is provided that a customer who has failed to repay a loan on due time, is to pay an extra fee. A potential lending company should reveal all the information about itself and pay an application fee amounting $250, if it wants its operations to be licensed. Additionally, a lender should possess $10,000 in order to open a new and every further subdivision of a company. After examining all background details about a lender, a state authorized representative decides whether a borrower can get a license or not.

The current lenders should correspond to the limitations on charges for a loan that the state legislative acts establish. Short-term credit is allowed to be provided to customers. But lenders face with tough terms by offering it. A financial fee for a $50 loan should be not higher that $5. If the loan sum exceeds $50, the operational fee makes up a dime or 10%. All the lenders should also necessary hang the list of all firm’s details and fees on the most noticeable wall, so that customers can be always informed about the lender’s conditions.

Since such strict rules are established and setting different terms on small loans is prohibited in Connecticut, it is not profitable for lending companies to operate in the State any more. As a result a lot of lenders have left the State market.

Such legislative acts are aimed at protecting citizens of Connecticut against unfair operations of the lenders and eliminating usury. Due to these restrictions payday lenders are unable to continue their activities in the State any more.

However, payday loans are still a great solution for your financial difficulties. Probably you don’t have enough savings to pay for emergency and can’t ask your relatives or friends for a help at the moment. Payday lending companies are always ready to provide you with their services at favorable terms and conditions. If you want to take a payday loan, but these loans are banned in your State, you don’t have to go to the nearest State where payday lending industry is legal. You can apply for this loan online and get money instantly, as online lenders are available throughout the country.

Application process for a payday loan is very easy. All you need to do is to comply with several requirements. We won’t check you credit history, or require any collateral and guarantors. Residency of the USA, full age and permanent employment are the only requirements for you to meet. You just complete the application form and get approval. The procedure is very fast as a rule. The received loan can be used for any purposes by you. If you can’t get a payday loan in Connecticut, you can get it form us.