It is legal to borrow money or to lend money via payday loans in Wyoming. A payday loan a.k.a. cash advance, pay check advance, pay check loan, etc., is an unsecured short term loan. This article will discuss important details, limits, requisites, charges, etc. The goal is to give a consumer a complete picture of what to expect when applying for a cash advance.
The Law
State law, not federal law, governs payday loans. In this case the principal law can be found in Wy. Stat. 40-14-362 et seq. Other laws relevant to the same such as laws on usury can be resorted to as a secondary source.
Loan Amount
The state does not mention any limit. Assuming there is none, it is up to the borrower and the lender to fix the limit. Any agreed upon amount will govern.
Loan Term
The maximum loan term is 1 month. This term is non renewable. The borrower cannot request an extension, modification, or use a check to extent the term. There is also no repayment plan, no refinance, and no consolidation.
Finance Charge and APR
The finance charge that a lender can collect is 20% f the loaned amount or $30, whichever is higher. For example, a $100 loan payable in 14 days can have a finance charge of $30. The Annual percentage rate for a $100 loan payable in 14 days is also 780%.
Other Points to Consider
There is also no cooling off period for the consumer to request a cancellation of the loan. This means that should the borrower change his/her mind the lender can enforce the payment of the loaned amount and the full interest (not pro-rated). Also, a lender can file a criminal action for bouncing checks after sufficient time has lapsed after the check is not payable and there are still no funds available on the account.
Payday Loan Haven
If you noticed, most of the limits as well as the allowable charges are pretty high. This means that this state is a payday loan haven. Meaning, a lot of lenders establish their main office in Wyoming. The same can then operate in all states by posting their services online.
Useful Resources
Your main resource should be the Wyoming Division of Banking (WDB). The WDB has a website. You can access it by typing the same as your keyword. If the website is under maintenance you can give them a call (307) 777-7797. You also have the option of referring you inquiries to the Attorney General’s Office. This is especially true if you are reporting a lender that violates the above mentioned guidelines.
In Closing
Before finalizing a payday loan online or otherwise, verify first with the appropriate licensing website that the provider has the appropriate business license. There is a website for this. The same can be accessed by going thru the website of paydayloaninfo.org. You can also go directly to the same by typing on your search engine “Wyoming PDCC license list”. The first search result which is a .pdf file is your target URL.
Resources:
http://law.justia.com/codes/wyoming/2012/title40/chapter14/section40-14-362/