Citizens of the state of Hawaii have many options for getting quick cash whenever they need it. Foremost among these options would be payday loans. Payday loans really are quick and easy ways to get cash but financial advisers advise against them. Their high interest rates and short payment terms often lure people in what may be called debt traps. Instead of applying for payday loans, people are advised to look for other options.
As a matter of fact, Cash Advances on credit cards may prove to be a better option, solely because it has lower interest rates compared to payday loans. However, this does not discount the fact that people, when left with no other option; consider getting a payday loan to ease their financial troubles. If you find yourself having no other choice, look to this guide to give you all the information that you need about payday loans.
A payday loan is one of those loans that have high interest and short terms. Its popularity springs from the fact that it is highly accessible. The requirements to get one are at a bare minimum, a prospective borrower would only need the following; a bank account that is in relatively good standing, a source of steady income, and some valid identification. Payday loans can be acquired in check cashers all over the state.
Loan Terms
The State of Hawaii regulations only allow would be borrowers the maximum loan amount of $600 on the payday loans that they avail of. Unlike in other states where the cap or ceiling is based on a certain percentage of the borrower’s gross monthly income, the cap or ceiling here is the same across the board. Gross monthly income refers to the borrower’s monthly salary before taxes.
The loan term is for a maximum of 32 days. The maximum finance rate that can be imposed on payday loans is 15% of the check’s face value and no other processing fees will be charged. Finance charges applied to 14-day $10 loans is $17.65 while the APR or Annual Percentage Rate for the same type of loan is at 459%.
Debt Limits
Borrowers are only permitted to have one outstanding loan at any given time. The rollover of payday loans is also not allowed. Meaning borrowers cannot just pay the interest and have the principal rollover to the next period. Cooling off periods in between loans is not specified, as well as any type of repayment plan.
Criminal action is prohibited against borrowers who fail to make payments. There is however a $20 NSF or Non Sufficient Funds fee but the check casher is not entitled to recover any damages.
How to Get Information or File Complaints
To know more about payday loans, pay a visit to or call the regulator, which is the Consumer Resource Center of the Hawaii Department of Commerce and Consumer Affairs. They are located in Beretania Street, Honolulu HI 96813 and can be contacted via landline (808) 587-3222 and fax (808) 586-2640.