Payday Advance Maine
Maine payday advance loans are considered illegal. There are state approved small loan lenders that can distribute loans of less than $2,000, but they must adhere to very strict legal guidelines. Payday loans can be obtained via online lenders, but they must also abide by these strict guidelines, which makes it quite unattractive for them to operate within the state of Maine.
If you encounter a financial emergency then you must seek out a state approved lender to obtain a small loan, search for an online lender willing to provide Maine payday loans while adhering to state restrictions, or utilize another alternative to obtain the necessary cash.
Payday Loans Explained
Payday loans, or payday advances, are small cash loans that are normally under $1,000 and are designed to be used to meet unexpected financial emergencies. Payday advances are easy to obtain, require only minimal information, and do not usually require credit checks so those who have no credit or bad credit can receive them.
Rapid cash advances are loaned out under high interest rates and user fees, but they are also repaid quickly, usually within a 31-day period. Such loans are often repaid upon the next payday; they are commonly called "payday loans". Cash advances can be used to meet emergency medical expenses, car or home repair, pay bills, take vacations, or other events requiring quick funding.
Restrictions and Laws Governing Maine Payday Loans
Maine payday advance loans, as such, are prohibited within the state. Instead, state approved and supervised small loan companies are allowed to provide loans of up to $2,000. A rate cap of 30 percent on loans of up to the small loan amount has been set by the state. Lenders cannot charge more than $5 on any loan up to $75, $15 on loans between $75 and $250, and $25 on loans ranging between $250 and $2,000. These guidelines have been set by the state of Maine to protect its residents from getting into uncontrollable indebtedness.
Online payday lending companies can be utilized to obtain emergency cash. However, you should keep in mind that they must adhere to the above guidelines when considering Maine payday advances. Because fees and interest rates are set so low, many online lenders avoid doing business in Maine or try to illegally charge higher than permissible rates and fees.
Alternatives to Maine Payday Advances
Since Maine payday loans are prohibited or very difficult to obtain within state guidelines, residents may need to resort to alternative means of obtaining quick cash to cover unexpected emergencies and situations. If you don't want to take out a small loan through an approved in-state lender or you do not qualify, and you cannot find an online company that provides Maine payday advances according to the above legal guidelines then you can look into the following suggestions.
If your financial situation consists of upcoming bill payments that cannot be met, try asking your creditors for due date extensions. Most lenders will work with you if they determine that your situation is, indeed, dire. If your situation requires extra cash, you can approach your employer and either request overtime or cash advances that are deducted from upcoming paychecks. You might also seek out a title loan, take on a side job, sell or pawn items, make adjustments to your tax withholding forms, look into Maine emergency hardship programs, or borrow the amount from a family member or good friend.
Where to Obtain Additional Information on Maine Payday Loans or Financing
If you want to find out more about Maine payday advances, approved in-state small loan lenders, or receive other financial information, contact the following state department.
Maine Bureau of Consumer Credit Protection
Department of Professional and Financial Regulation
35 State House Station
Augusta, Maine 04333
Phone: 207-624-8527 or 800-332-8529
If you wish to file a financial complaint, you can visit the following website.