Iowa Payday Loan Laws

Iowa’s cited location for their payday laws can be found in Iowa Code Ann. 533D.1 et seq. as a means to keep lenders under specific guidelines.

• Maximum Payday Loan Amount – $500
• Minimum Payday Loan Terms – Unspecified
• Maximum Payday Loan Terms – 31 days
• Maximum Quantity of Outstanding Payday Loans – Two
• Maximum Amount of Payday Loan Extensions – None
• Maximum Payday Annual Percentage Rate (APR) – 433 percent
• Maximum Payday Financing Interest Fees – $16.67
• Maximum Payday Annual Financing Interest Rates – $15 dollars up to a $100 dollar loan and $10 dollars for each $100 dollars up to the maximum loan
• Maximum Allotted NSF Check Fees – $15 only once
• Maximum Allowed Criminal Actions – Unspecified

Iowa’s restriction and laws that govern payday loans are not terribly restrictive, but for some lenders they just will not due. Therefore, they have found that, to get around the laws the lenders will use loopholes to achieve this. One commonly used by some Iowa payday lenders is to say they cannot approve their request, but refer them to a website with an instant approval. The reason for this is the deceptive lender usually owns the site and operates it internationally or from a different state where he or she can collect higher fees and interest rates.

Most of the people needing payday loans are in financial trouble and for one reason or another need cash right away. This makes it very easy for crooked lenders to take advantage of them. Aside from directing them to online payday loan sites that charge high ARP and fees, they will finagle more money in fees by offering a check cashing fee.

The lender pays out on the loan using a check then turns around and offers to cash it on the spot. Of course, a ridiculous fee and a percentage of the check amount are charges. Therefore, by the time the payday lender is finished, they have instantly recouped a portion of the loan before the customer even leaves the business.

Predator payday lenders can be found online and in brick and mortar locations. If a small load cannot be secured through the consumer’s personal bank, a friend, or family member, he or she must read all the paperwork involved with their payday loan. If even one aspect is in question, it is advisable he or she not sign the agreement, because one it is signed, the customer is now responsible for whatever is stated in the loan contract.

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