Understanding Payday Loans in Whitmer, West Virginia
What are payday loans?
Payday loans are short-term loans that are usually due on the borrower’s next payday. These loans are meant to be a quick fix for people who need cash fast. They typically require no credit check and are easy to qualify for. However, they often come with high interest rates and fees.
Payday Loans in Whitmer, West Virginia
It’s important to note that payday loans are prohibited in West Virginia. The West Virginia Code § 46A-4-107 and § 46A-4-110 state that “no licensee may make a payday loan to a consumer if the loan would result in the consumer being indebted to one or more licensees for a period in excess of 45 consecutive days.”
Why are payday loans prohibited in West Virginia?
Payday loans have been banned in West Virginia since 2007 because of the high interest rates and fees that many lenders charge. The state government believes that payday loans are predatory and take advantage of low-income individuals who are in desperate need of cash.
The consequences of payday loans
Payday loans can be very expensive and can trap borrowers in a cycle of debt. According to a report by the Consumer Financial Protection Bureau, more than 80 percent of payday loans are rolled over or followed by another loan within 14 days. This can lead to a cycle of debt where borrowers end up paying more in fees than the original loan amount.
Interesting Facts and Statistics
Did you know that in states where payday loans are legal, the average APR is 391 percent? Also, the average payday loan borrower takes out eight loans per year and spends over $500 in fees alone. In states where payday loans are prohibited, households experience a four percent reduction in the rate of bankruptcy filings.
Apply Now
While payday loans are prohibited in West Virginia, TheGuaranteedLoans still offers other options for borrowers in need of financial assistance. As a connector service, we can help you connect with potential lenders who offer installment loans, title loans, and personal loans. Fill out our online application today to learn more about your options.
In Conclusion
Payday loans can be tempting when you need cash fast, but they are often not worth the high interest rates and fees. In West Virginia, they are prohibited to protect consumers from predatory lending practices. At TheGuaranteedLoans, we are committed to helping borrowers find financial assistance that meets their needs.