Payday Loans in Bensalem, Pennsylvania
Despite the rise in popularity of payday loans all across the country, the state of Pennsylvania has strict regulations and laws that govern payday loans. Due to these regulations, payday loans are largely prohibited within the state. However, some lenders still offer payday loans with certain restrictions for borrowers in Bensalem, Pennsylvania.
Although payday loans are short-term, unsecured loans, the state of Pennsylvania doesn’t recognize them as such. Payday loans are viewed as a form of consumer loan, which is heavily regulated by the Pennsylvania Department of Banking. As a result, all payday lenders in Pennsylvania are required to be licensed and follow stringent rules. These rules include requiring payday loan borrowers to have a valid bank account and a stable income.
In Bensalem, Pennsylvania, payday loans are available, but not in the traditional sense. Borrowers are not able to take out a loan with a payday loan company and receive the money in cash. Instead, borrowers must have a valid checking account into which the loan money is deposited. Individuals are free to spend the money from their checking account however they choose, but they are still required to pay back the loan as agreed.
The amount that a borrower can borrow is limited in Bensalem, Pennsylvania. Borrowers are not able to take out more than $500 at a time. Additionally, the interest rate charged on the loan is limited to 6%. Borrowers should also note that the loan must be paid back within the agreed upon time frame. If a borrower fails to pay the loan back on time, they may be subject to fees and additional interest.
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Frequently Asked Questions
What is a payday loan?
A payday loan is a short-term loan, typically for $500 or less. The loan is generally repaid when the borrower receives their next paycheck. They are sometimes referred to as cash advances, because they are typically advanced against a future paycheck.
Are payday loans available in Bensalem, Pennsylvania?
Yes, payday loans are available in Bensalem, Pennsylvania, but they are subject to restrictions that are not found in other states. All borrowers in Bensalem must have a valid checking account and must not borrow more than $500. Interest rates are also limited to 6%.
Can I receive a payday loan in cash?
No, payday loans in Bensalem, Pennsylvania must be deposited directly into a valid checking account. Borrowers are free to spend the money however they choose, but are still required to pay back the loan according to the terms of the agreement.