More Information about Cash Advance Fees
If you wait until you receive your cash advance loan to start thinking about the rates and fees, then you’ve waited too long. It’s important to plan for your funding beforehand. That means looking at state regulations. For example, in California, the maximum finance charge is 15% of the amount advanced. Please note that we are referring to the fee associated with this type of short-term loan, and not the one connected to credit cards.
Estimating Your Fees
It can be hard to pinpoint your payday loan fees ahead of time. However, you should be able to figure out a ballpark figure. The way to do this is to figure out what the maximum finance amount is in your state. Chances are your fees will be relatively close to that estimate. However, your loan agreement will have the exact fee spelled out for you.
What Are Each State’s Cash Advance Fees?
Here’s a state-by-state list of maximum finance charges for payday loans:
- Alabama: 456% APR, not more than 17.5% of the amount advanced
- Alaska: 435% interest rate, 15% of the amount advanced
- California: 460%* APR (369% on the average in 2019); finance charges are $17.64 per $100 or 15% of the amount advanced (up to $45)
- Colorado: 36% interest rate; finance charges are no more than 36% of the loan
- Delaware: 521% interest rate; no limit on finance charges
- Florida: 304% interest rate, 10% charge; one loan limit at a time; no roll-over allowed
- Hawaii: 36% interest rate, plus a $35 per month maintenance fee; finance charge is 15% of the amount advanced, <$17.65 for $100,
- Idaho: 652% interest rate; loan cannot exceed 25% of borrower’s gross monthly income; finance charges have no limit
- Illinois: 36% APR; $1 verification fee; maximum $25 NSF fee
- Indiana: 391% interest rate; finance charges are as follows:
<$250 loan amount = 15% fee
$250 - $400 loan amount = 13% fee
$400 - $550 loan amount = 10% fee
- Iowa: 337% interest rate; finance charges are $15 on the first $100 +, >$10 on subsequent $100
- Kansas: 391% interest rate, 15% of the amount advanced; no roll-over allowed; two loans at a time
- Kentucky: 460% interest rate; 15% finance charge on $100; no roll-over allowed
- Louisiana: 391% interest rate, 16.75% of the amount advanced
- Michigan: 369% interest rate; two loans at a time allowed; 15%-11% finance charge
- Minnesota: 200% interest rate; finance charge varies depending on amount of a loan
- Mississippi: 521% interest rate; finance charge 20%-21.95% for $100; no roll-over allowed
- Missouri: 443% interest rate; finance charges should not exceed 75% of initial loan amount; 6 roll-overs allowed
- Montana: 36% small loan cap; 1.39% finance charge for two-week $100 loan
- Nebraska: 460% interest rate, 15% of the amount advanced; no roll-over allowed
- Nevada: No limit, real APR 625%; no restriction to number of loans
- New Hampshire: 36% APR
- New Mexico: $15.50 per $100; administrative fee of up to $0.50 per $100
- North Dakota: 487% interest rate, 20% of the amount advanced
- Ohio: 28% interest rate; one loan is allowed at a time; no roll-over allowed
- Oklahoma: 395% interest rate; 10%-15% finance charge
- Oregon: 154% interest rate; finance charges are capped at 36%
- Rhode Island: 261% interest rate; 10% on the amount advanced
- South Carolina: 391% interest rate; 10% on the amount advanced
- Tennessee: 460% interest rate, 15% of the amount of the check
- Texas: 662% interest rate; finance charge varies depending on the amount of the loan; no roll-over allowed
- Utah: 658% interest rate; no limits on finance charges
- Virginia: 36% (can reach 601%) interest rate; APR is capped at 36%; 5% verification fee; 20% loan fee
- Washington: 391% interest rate;10%-15% finance charges; no roll-over
- Wisconsin: 547% interest rate; 2.75% monthly finance charge; two renewals allowed
- Wyoming: 261% interest rate; 20%-30% monthly finance charge
These facts and figures are up to date, but you should double-check these numbers with your state department to make sure you have the most accurate information. Once you have an idea of what your fees will be like, you can start to budget for that number.
CFPB to Change the Game
The Consumer Financial Protection Bureau (CFPB) creates and enforces financial laws to make sure that consumers have access to financial products that are efficient, honest, and meet their needs. They do research, gather public opinion, hold business review panels, and have advisory bodies to help them create rules and regulations for the financial market. They assess the advantages and disadvantages of the regulations before enforcing them. Once a rule is in place, they provide resources to guide consumers in the right direction if they are unsure about compliance.
Their rules are federal level regulations, which means they’ll supersede anything at the state level. None of the proposed rules limit the original finance charges. The rules have more to do with requiring lenders to determine if a borrower can pay back a loan, and then making sure the debt amount is reasonable enough for the borrower to fully pay it back.
For more information, visit CFPB.
Final Thoughts
A short-term loan is meant to be used for a small amount of time. You can get yourself into trouble when you take a long time to pay back a high-interest loan. To avoid falling into a cycle of debt, be sure to pay back your loan and fees by the specified due date. We hope this information will help you as you prepare your budget. If you have any questions, please feel free to reach out.
*opencashadvance.com strives to present accurate information on each state’s regulations; however, we do not guarantee the accuracy of data as presented. Please contact your state’s department of finance or visit your state’s official website for the most accurate information and inquiries. Information, as presented on individual state information pages, was derived from www.ncsl.org/research/financial-services-and-commerce/payday-lending-state-statutes.aspx and www.paydayloaninfo.org/state-information/.
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