Are Payday Loans Federaly Regulated?
Unlike banks and credit card companies that are heavily regulated by the Federal Government, payday loan companies are currently mostly regulated by state and local laws.
Laws regulating payday loan companies vary widely from state to state. If you want to read more about the regulations for the company that provided you a loan, then you need to know in which state the payday lender is working out of. Then read up on that State’s regulation details.
For example, in the state of Colorado payday loan providers can charge finance fees as high as 35%. In Arkansas, customers will pay a maximum rate of 17%.
The U.S. Federal government is currently in the process of applying consistent standards across the industry. That will make comparing cash advance choices much easier in the future.