In all of the American states, the state of Nevada has the most lenient rules governing payday loans. Legal bases on matters relating to Nevada payday loans can be found in Stat. 604A.010 et seq.
A lendee can loan an amount equivalent to twenty five percent (25%) of his or her gross income. The loan will be due for a maximum of 60 days, but extensions for a period beyond that is disallowed. However, rollovers are allowed but there is no specified number of the frequency a loan can be rolled over. Repayment plans are also acceptable. And here’s more, there is no limit on the number of times a borrower can apply for an outstanding payday loan in the state of Nevada. Meaning, a borrower can apply with various lending institutions in one time.
The Annual Percentage Rate (APR) is also limitless. The maximum rate of fees is not legally specified; although it is common practice that when the loan becomes defaulted, the interest rate should not be smaller to or equal to that of the prime rate of the largest bank in the state of Nevada with an additional ten percent (10%).
This is the point where lendees should be conscious of their obligations. If Nevada payday loans will be defaulted, the interest rates will go sky high since there are no rules in place that will regulate the unreasonable piling up of charges. For example, for as small as a $100 loan demandable for a 14 day period, there is no limit for the accrued charges when it is defaulted. Thus, a lendee could be paying thrice or more as much as the principal being loaned.
In the Nevada Revised Statutes sections 604A.435, the law states that lending institutions in Nevada have the discretion on whether or not to require collateral from a borrower availing of a payday loan. However, all borrowers should take note that most contracts of Nevada payday loans clearly stipulate that the lender (technically termed as licensee) shall collect the full amount when it becomes due. Thus, when it is defaulted, the lender will do anything in its power to run after the lendee legally. When worse comes to worst, a lender can collect the salaries and wages or even the personal assets of the borrower which are not covered in NRS section 21.090 as payment for the loans.
Although there are laws that protect borrowers from the threats and harassment from lending institutions that come with collecting Nevada payday loans, the law also admonishes borrowers who are irresponsibly handle their financial obligations. Aside from confiscating personal assets, lenders can also collect the amount of $25 dollars for non-sufficient funds (NSF) which is permissible twice and only once for a closed account.
In cases where the transaction will lead to a lawsuit, the lender can also ask for court fees and processing fees. However, the lender cannot file for a criminal case unless there are unlawful motives.
Transactions on payday loans are regulated by the Nevada Financial Institutions Divisions.