Payday Loans in Assonet, Massachusetts

If you’re a resident of Assonet, Massachusetts and are considering taking out a payday loan, you should know that payday loans are prohibited in the state. In Massachusetts, it is illegal for lenders to offer payday loans to its residents. This is in contrast to many other states in the US where payday lenders are regulated and often easily accessible.

What are Payday Loans?

Before diving into the specifics and understanding why payday loans are prohibited in Massachusetts, let’s define what a payday loan is. A payday loan is a form of short-term borrowing where a lender offers a small amount of money at a high interest rate with the expectation that the balance will be paid off on the borrower’s next payday. These loans are typically marketed as a quick solution to financial emergencies or unexpected expenses that may arise before the end of the month.

While these loans may seem like a convenient solution to a short-term financial problem, they have been met with criticism from many financial experts. The high-interest rates on payday loans can trap the borrower in a cycle of debt, and it is not uncommon for borrowers to take out new loans to pay off the old ones, creating a never-ending cycle of debt.

Why are Payday Loans Prohibited in Massachusetts?

Today, payday loans are no longer legal in Massachusetts. In 2018, the state signed a new law that set limits on the interest rates and fees that lenders can charge on loans, prohibiting payday loans. In Massachusetts, a small loan rate cap has been set at 23% annually with an additional administrative fee of $20.

The reason for this new law was to protect consumers from predatory lending practices. Many borrowers were falling prey to payday lenders who were charging astronomical interest rates and fees on the loans they were offering. Some lenders were charging interest rates as high as 400%!

What are the Consequences of Taking Out a Payday Loan in Assonet, Massachusetts?

While it is illegal for lenders to offer payday loans in Massachusetts, this does not mean that borrowers are entirely safe from predatory lenders. Despite the fact that payday loans are prohibited, it is still possible for a borrower to come across a lender who may try to offer them a payday loan.

Before taking out any type of loan, it’s important to do your research and make sure you’re working with a reputable lender. If you do take out a payday loan in Massachusetts, you are not obligated to repay the loan because it’s against the law for lenders to offer them in the state. You should report any illegal payday lending activity to the Massachusetts Attorney General’s Office.

Interesting Facts and Statistics about Payday Loans in Assonet, Massachusetts

• The average payday loan borrower takes out 10 loans per year.
• A typical payday loan is $350, and the borrower typically pays $15 for every $100 borrowed.
• Payday lenders in Massachusetts made over $150 million in 2018 from 1.8 million loans.
• Nearly 30,000 Massachusetts residents took out a payday loan in 2018.
• The average APR on a payday loan in Massachusetts is 231%.

Apply Now

While payday loans are illegal in Massachusetts, if you’re in need of a short-term loan, TheGuaranteedLoans may be able to connect you with a potential lender. As a connector service, we work with a network of lenders who are willing to offer loans to borrowers in other states where payday loans are legal. You can apply for a loan today by filling out our online application. We’ll connect you with a lender who can offer you a loan that fits your needs and budget. Remember, payday loans are prohibited in Massachusetts, so it’s important to carefully research and consider all other options before taking out a loan.