A payday loan transaction in the state of Oklahoma is considered legal. The laws and policies governing the industry are covered in Okla. Stat. Tit. 59 sections 3109 et seq.
Borrowers should at least be of the legal age of 18 years old, with an active bank account and a legitimate source of income. The maximum loan amount a borrower may apply for is only up to $500 which will mature within 12 to 45 days. A $500 loan will incur a $65 interest and charges over a 30 day period.
Interest rates are pegged at 15% for $100 to $300 total amount of loan and an additional fee of $10 bucks for more than $301. The usual finance charges for every $100 loan payable in 14 days will reach up to $15. Oklahoma payday loans will generate 390% Annual Percentage Rate. It has a considerably lower APR compared to other American states.
A borrower can have two outstanding loans at one time. Rollovers are not permitted but repayment plans are acceptable. Repayment plans may also incur additional 10% of the principal amount as processing fee but should not exceed $15. A borrower must also observe the grace period of at least two days after payment of the fifth consecutive loan before applying for a new loan or renewing it.
Oklahoma payday loans institutions cannot require collateral such as personal properties of borrowers to guarantee the loans. Further, the law does not also allow the lenders to split the amount of the loans into two different checks so that it can collect more fees.
A lender can also collect $25 dollars for non–sufficient funds during collection of payments. However, it cannot proceed with the charges if the insufficiency of the borrower’s account is due to legal impediments such as thefts, etc. Just like in most of the states, the lender does not have the right to go to court to file criminal charges against the borrower in cases of non-payments. Lenders should not also recourse to threats, harassment and any other forms of violence or psychological manipulations to ensure payments of the loan. In some cases, a lender can only go after the borrower to collect payment through a court order. Everything that the borrower and lender agree upon relating to the loan will be documented in the contract.
Borrowers are advised to be more mindful and alert when applying for Oklahoma payday loans over the internet to avoid scams and vicious money-making schemes. All lending institutions in Oklahoma are covered by the guidelines set under the Deferred Presentment Service Act. Before they can fully operate the business, a license must be obtained from the Administration of the Department of Consumer Credit. In other states, a lending institution will only increase its capital outlay and will operate under one license but not in Oklahoma. A new license must also be applied for every consequent branch.
Inquiries and other relevant information can also be directed and obtained from the Oklahoma State Department of Consumer Credit.
Sources: