In the state of Nevada payday lending is considered legal.
Legal status of payday lending in Nevada is indicated in the Stat. 604A.010 et seq. In this document there are also all the regulations concerning lending businesses.
- In the majority of the states payday lending is regulated by rather strict rules. However this does not refer to Nevada.
- Perhaps, only Nevada has got such lenient policy in terms of payday lending.
- There are no restrictions about the number of outstanding loans and no actual limits for fees and interest as well.
- There is no limit to amount of loan and the number of lenders.
Notwithstanding the fact that at large Nevada state laws are very soft when it comes to payday lending, still, there are some regulations.
- Thus, it is prohibited to extend loans for periods longer than 60 days after the initial term is due.
- There are no interest caps on APR in Nevada but only in case when loans do not go into default. In such cases it is required that the rate should not be 10% higher than the prime rate set by the biggest state bank.
- There is no maximum loan amount number; however, the amount of a loan is decided in accordance with a person’s income. It has a cap of 25%. Every person can have as many outstanding loans at a time from different lending institutions as they like. There are no limitations here.
NSF fee is set at $25 for the first two checks by the state law. In case a borrower does not make any repayments and moreover refuses to do so, a lender is allowed to hold civil liable against a borrower.
Criminal actions, however, should be taken only in case it is proved that a borrower has never meant to repay a loan. One thing that should be avoided in Nevada is defaulting on a loan. As it has been aforementioned, interest rates rise high to the skies in this case. Surely enough, the state takes measures to protect borrowers from harassment and threats of lenders and there is certain laws containing the regarding regulations. Still, it is better to repay in due time and be well aware of the laws in the field.
More information about Payday Loans in Nevada: http://www.fid.state.nv.us/