Expanded Lending Site Provides Information on Laws Governing the North Dakota Payday Loan Industry
Los Angeles, CA -- (ReleaseWire) -- 12/27/2011 --As the nation's economy remains anemic, more and more households are turning to cash advances, also known as payday loans, to obtain needed funds when the next paycheck is too far off. Consumer demand has seen this increasingly vital resource invaded by unscrupulous lenders who misuse borrowers' personal information for their own ends. To help consumers stay informed and properly equipped to identify and avoid scam artists posing as legitimate lenders, CashAdvance.com has launched a new Consumer Protection page for North Dakota.
“CashAdvance.com strives continually to ensure consumer protection by providing the knowledge and resources necessary for consumers to make informed financial decisions,” says CashAdvance.com spokesperson Hanna Wellman. “The Consumer Resource pages offer a wealth of information arming consumers with the resources to actively preserve their rights, while providing recourse to regulatory agencies capable of remedying fraudulent lending practices.”
While North Dakota law does permit cash advances, the state imposes very stringent and specific guidelines to prevent predatory lending practices: payday loans cannot exceed a maximum amount of $500 and cannot have a repayment term of more than 40 days. State law also caps finance charges at $20 per $100 loaned, and interest rates may not exceed 20 percent.
CashAdvance.com’s North Dakota Consumer Protection page contains additional information on the payday loan process, as well as links meant to guide consumers seeking a North Dakota cash advance, and help people educate themselves before borrowing.
For example, the new consumer resource page arms borrowers with the knowledge that any business providing a cash advance in North Dakota is required by state law to give customers a written copy of the loan agreement (spelled out in easy-to-understand layman’s terms). Additionally, the loan agreement must include all the charges of the loan listed in dollar amount, clearly indicating the annual percentage rate as well.
"Our new Consumer Protection page will dispel any misconceptions or uncertainty surrounding the cash advance process in North Dakota,” said CashAdvance.com financial news expert Adam Hilliard. “The site is designed to equip consumers with practical advice for averting financial crisis, answer myriad loan questions, and ultimately guide borrowers on the road to taking control of their financial future."