Rates And Fees
Although your individual lender will ultimately determine the rates and fees associated with your loan in accordance with the regulations in your state, there are plenty of industry-wide similarities in the various charges. ElcLoans.com makes it a point to ensure that you will only deal with lenders who have agreed to abide by federal and state laws. We provide plenty of information for your convenience as well as resources and links that will help you better understand the industry and handle any issues that may arise.
Fundamentals of Short Term Loans
ElcLoans.com has provided resources, documents, articles and links that are all designed to help you have the best experience possible when it comes to obtaining short term cash loans. Some of the information available includes the average rates and fees associated with the loan, some of the scams of which you should be aware and the best ways to use these loans responsibly. There are links to the Federal Trade Commission and the Consumer Financial Protection Bureau for your convenience; these groups are responsible for regulating the industry and ensuring that consumers are treated fairly.
Disclosure of Fees and APR
The APR associated with your loan is the annual percentage rate, or the amount of interest that you would pay on your total loan amount over the course of a year. The APRs for short term cash loans range from 260.71% to 1825.00% which is higher than other forms of consumer credit, but since these loans are designed to be repaid in a short period of time, consumers typically pay interest rates that are comparable with the fees for overdrafts and bounced checks. The table below is a comparison of charges on a $100 loan that is extended for a period of two weeks.
| Product Type (single repayment) | Charge | APR |
|---|---|---|
| NSF + Bounced Check | $45.00 | 1,173.21% |
| Overdraft Fee | $30.00 | 782.14% |
| Late Fee | $20.00 | 521.43% |
| Short Term Loan | $10.00 | 260.71% |
State Regulations
All of the lenders in our network agree to adhere to federal laws and state regulations that apply to the short term loan industry. Some of the things that states typically regulate include whether or not short term loans are allowed, the maximum amounts of these loans, the number of loans that may be outstanding at any given time, the fees and interest that lenders can charge and even how many rollovers are available to consumers. We have compiled a list of states, the maximum loan amounts in those states and the regulations they have in place for your convenience.
| Alabama | $500 | Finance charges may not exceed more than 17.5% of the total loan amount. |
|---|---|---|
| Alaska | $500 | Finance charges may not exceed more than 15% of the total loan amount, and lenders can charge a discretionary $5 origination fee. |
| Arkansas | $400 | Finance charges may not exceed 10% of the total loan amount and additional charges, such as those for origination fees, may not exceed $10. |
| California | $300 | Finance charges may not exceed 15% of the total loan amount. |
| Colorado | $500 | Lenders are permitted to charge a $30 maintenance fee for each month that the loan is unpaid. The APR associated with loans may not exceed 45%. Finance charges may not exceed 20% on the first $300 of the loan and 7.5% on amounts between $301 and $500. |
| Delaware | $500 | There are no further regulations in Delaware. |
| Florida | $500 | Lenders may charge a reasonable verification fee at their discretion. Finance charges may not exceed 10% of the total loan amount. |
| Hawaii | $600 | Finance charges may not exceed more than 15% of the total loan amount. |
| Idaho | $1000 | There are no further regulations in Idaho. |
| Illinois | $1000 or 25% of Gross Monthly Income | Finance charges may not exceed 15.5% of the total loan amount. |
| Indiana | $50 Minimum or $500 Maximum | Finance charges may not exceed 15% of the first $200, 13% on amounts between $251 and $400, and 10% on amounts between $401 and $500. |
| Iowa | $500 | Finance charges may not exceed 15% for the first $100 of the loan and 10% on the remaining amount of the loan. |
| Kansas | $500 | An administrative fee may be charged at the lender's discretion. Finance charges may not exceed 15% of the total loan amount. |
| Kentucky | $500 | No more than two loans are permitted at any given time and these loans may not exceed the state maximum. Finance charges may not exceed more than 15% of the total loan amount. |
| Louisiana | $350 | Finance charges may not exceed 16.75% of the total loan amount. |
| Maine | There are no loan limits or state regulations in Maine. | |
| Michigan | $600 | Finance charges may not exceed 15% of the first $100, 14% for the next $100, 13% for the third $100, 12% for the fourth $100 and 11% for the fifth and sixth $100. Administrative fees are also allowable. |
| Minnesota | $350 | Finance charges may not exceed 5.5% on the first $100, 7% for amounts between $101 and $250, and 6% on amounts between $251 and $350. Administrative fees are also allowable. |
| Mississippi | $400 | Finance charges may not exceed 18% of the total loan amount. |
| Missouri | $500 | Any finance charges or interest is allowable as long as the total charges do not exceed 75% of the total amount of the loan. |
| Montana | $50 Minimum and $500 Maximum | Finance charges cannot exceed 36% of the total loan amount. |
| Nebraska | $500 | Finance charges cannot exceed 15% of the total loan amount. |
| Nevada | No More than 25% of Gross Monthly Income | There are no additional regulations in Nevada. |
| New Hampshire | $500 | Finance charges may not exceed 6% of the total loan amount. |
| New Mexico | No More than 15% of Gross Monthly Income | No additional regulations in New Mexico. |
| North Dakota | $500 | Finance charges cannot exceed 20% of the loan amount. |
| Ohio | $500 | Finance charges may not exceed 28% of the total loan amount. |
| Oklahoma | $500 | Finance charges cannot exceed 15% on the first $300 and no more than 10% on any remaining loan amount. |
| Oregon | No More than 25% of Gross Monthly Income | Origination fees of up to $30 are allowable. Finance charges may not exceed 36% of the total loan amount. |
| Rhode Island | $500 | Finance charges cannot exceed 15% of the face value shown on the provided check. |
| South Carolina | $550 | Finance charges cannot exceed 15% of the total loan amount. |
| South Dakota | $500 | No additional regulations in South Dakota. |
| Tennessee | $500 | Finance charges may not exceed 15% of the total loan amount. |
| Utah | No minimum loan amounts or regulations in Utah. | |
| Virginia | $500 | Verification and origination fees are allowable. Finance charges may not exceed 15% of the total loan amount. |
| Washington | $700 or 30% of Gross Monthly Income | Verification fees are allowable. Finance charges may not exceed 15% of the total loan amount. |
| Wisconsin | No loan limits or regulations in Wisconsin. | |
| Wyoming | No Maximum | Finance charges may not exceed $30 or 20% of the principle balance, whichever is less. |
Follow the link to this official website and this resource to get all the necessary information regarding the regulations in your state.
The states in which short term cash loans are prohibited are: Arizona, Connecticut, Georgia, Maryland, Massachusetts, New Jersey, New York, North Carolina, Pennsylvania, Vermont and West Virginia (this list is not exclusive, the regulations in each state vary).
Implications of Late Payment:
You are encouraged to contact your lender as soon as possible if you are unable to repay your loan on the scheduled repayment date. Your lender will set its own late payment fees in accordance with state regulations, and your lender has several courses of action available to them if your payment is late. For more information about your lender's specific procedures as they apply to late payments, please review your loan agreement or contact your lender directly.
Implications of Non-Payment:
Financial Implications.
The costs associated with loans of up to $500 can range from 15% to 40% of the entire loan amount, and the charges associated with loans of more than $500 can be even more. Your lender may also charge you late fees as well as fees for non-sufficient funds. As an example, your lender may charge you a $20 nonsufficient funds fee as well as 15% of the loan balance as a late fee. Please review your loan agreement carefully for information about the financial implications of non-payment before you provide your electronic signature.
Collection Practices.
Non-payment may involve debt collection practices as it is set by applicable law. The majority of the lenders in our network do not intend to sell your debt to outside collection agencies. Instead, they will attempt to collect the debt in-house via telephone, email, postal mail or even text message. Similarly, they will not threaten criminal charges or sue borrowers; they will generally offer debt settlements over time instead. Every lender in our network is required to adhere to the Fair Debt Collection Practices Act which protects consumers from being abused or harassed by debt collectors.
Impact on Credit Score.
Lenders are within their rights to report your failure to repay a loan to one or all of the major credit reporting agencies — Experian, Equifax and Transunion. This negative report can be reflected on your credit history indefinitely until the loan is repaid in full. After the lender has received payment in full, they can report this to the credit reporting agencies and the report of non-payment can be removed from your record. We remind that late payment or non-payment of your loan can have negative impact on your credit history.
Renewal Policy.
Some of the lenders in our network may automatically renew your loan if it becomes past due. This term is clearly identified in your loan agreement. You should check your loan agreement for your lender's policy on automatic loan renewal prior to e-siging it. If your loan is renewed, there will be additional charges as determined by your lender, and the minimum term can be set up. Your lender may offer you other options in addition to renewal, including the ability to repay your loan in full at a later date or repay your loan over time in a series of installments.