Understanding Payday Loans in Inyokern, California
Payday loans are short-term loans that are meant to bridge the gap between paychecks when unforeseen expenses arise. In Inyokern, California (and the rest of the state), payday loans are legal and regulated by California Financial Code Division 9, which requires payday lenders to be licensed and adhere to certain rules and regulations.
How do payday loans work in Inyokern?
To apply for a payday loan in Inyokern, California, you must be at least 18 years of age, have a steady income source, and provide proof of residency and income. The loan amount typically ranges from $100 to $255, and the repayment term is usually between 8 and 31 days, with the option to extend for an additional fee.
- The lender will ask you to write a postdated check or authorize an automatic debit to repay the loan amount plus the interest and fees at the end of the term.
- You will receive the loan amount in cash or deposited directly into your bank account.
What are the fees associated with payday loans in Inyokern?
The California law requires payday lenders in Inyokern to disclose all fees in writing. The maximum amount a lender can charge is 15% of the loan amount. For example, if you borrow $255, the maximum fee you can be charged is $37.50. In addition, lenders can charge a maximum of $45 if the check bounces or the automatic debit is declined due to insufficient funds in your account.
What happens if you can’t repay a payday loan in Inyokern?
If you cannot repay the loan on time, you may be charged additional fees or interest. In addition, the lender may offer you a rollover or renewal option, which allows you to extend the repayment term for an additional fee. However, this can result in a cycle of debt that is difficult to break free from.
Therefore, it’s important to only borrow what you can afford to repay and avoid borrowing from multiple lenders at once. It’s also recommended to explore other options such as borrowing from a credit union, seeking assistance from family or friends, or negotiating with the creditor for a payment plan.
Interesting Facts and Statistics about Payday Loans in Inyokern, California
- According to the California Department of Business Oversight, there were 11.9 million payday loans in California in 2019, with an average loan amount of $294 and an average APR of 372%.
- The same report shows that Inyokern had a total of 38 licensed storefront payday lenders in 2019, with a total loan volume of over $6.6 million.
- Data from the Center for Responsible Lending shows that payday lenders disproportionately target low-income and minority communities.
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