Florida Cash Advance Consumer Resource

There are times where the paycheck just does not seem to stretch as far as it once did. Everyone goes through financial difficulties, and sometimes it seems as though the only option is to take out a payday loan in search of quick cash and a temporary solution until you can figure out a better path to take. When searching for a cash advance in Florida, there are several things you should take into account. As unfortunate as it is, there are a number of people that capitalize on others in need and doing some research will help you make the right choice.

Though Florida has a number of regulations in place to help those that enroll in a payday or short-term loan, the responsibility ultimately falls on the borrower to be sure that she or he is prepared to handle the loan and all of the additional charges and fees associated with it. Because of this, anytime you enter into an official agreement, especially one in which you sign a document, you must have a thorough understanding of all the specifics of the loan laid out by the lender. It is in the confusion of such legal documents that people are often misled and end up paying much more than they bargained for.

While knowing the particular loan you are entering is extremely important, so is being very familiar with the above regulations and reporting to the proper authorities when a lender is violating them. Some lenders will rely on the desperation of a person in financial need to distract them; upfront cash is very alluring. By being prepared to spot a broken regulation and report it, you are not only saving yourself from entering an unlawful loan, but the countless others in a similar situation that are looking for a cash advance in Florida.

Payday loans are one of the most common and easiest loans that offer upfront cash, though they are possibly the most dangerous for those in a dire financial situation. Companies will give you a small loan, usually a few hundred dollars, and require you to write a postmarked check, which is meant to be cashed at a later date, or provide your banking information for an automatic payment. That date is typically set upon your next payday with the assumption that your paycheck will cover the cost of the loan. Unfortunately, some payday loan companies often find many ways during the loan to add on extra charges and fees that make repayment of the loan impossible, forcing an extension or rollover, which then further increases the amount due. To counteract this, many states have enacted laws that help protect consumers in this situation, and there are currently several in place for those wishing to receive a cash advance in Florida.

• $500 Loan Limit: By setting a limitation on the initial loan, the law helps consumers keep down the total they will owe at the end of the loan period. Though interest and fees can be added to the total, by only being able to start with $500, that number will be much lower than if a consumer had taken a loan for over $1000.
• Loan Term 7-31 Days: Keeping a loan term from running too long ensures that, in case of an emergency, the loan will end and that repayment, through whatever plan can be agreed upon, will commence at a set time. States without loan term limits have the potential of allowing lenders to indefinitely extend the loan, racking up more and more interest and fees for the consumer, making it only harder and harder to repay.
• 390% APR for 14-Day $100 Loan: This is one of the limits imposed that does not necessarily strike comfort into the hearts of those seeking a cash advance in Florida, especially when compared to the single-digit rates offered by larger banks for long-term loans. The $100, 14-day loan is the standard comparison and, though it seems like quite a bit, it is lower than the limits in other states, some allowing over 1000% APR.
• One Outstanding Loan Maximum: In the interest of protecting consumers from accruing too much debt, they have limited the amount of loans that borrowers can have. This helps keep people from digging too deep a hole with a creditor. Florida, among several other states, is actually leading the development of payday loan regulations by enforcing this maximum with the creation of a statewide database and requiring all lenders to run checks through it to ensure their borrowers are not currently tied up in another loan.
• No Rollovers Allowed: Rollovers are the process of taking out one loan to pay off another with the same lender. Though it might seem like a good idea to some borrowers, for each and every loan, Florida allows up to $15 per $100 borrowed. Consumers essentially dig themselves deeper and deeper into debt through the use of rollovers and by prohibiting them, the Florida state government prevents consumers from making this mistake.
• Enforced Repayment Plan: In states without this protection in place, the repayment of outstanding loans is a messy process during which slyer lenders will tack on even more fees. For those taking a cash advance in Florida and having trouble with the repayment at the end of the loan, the government has mandated that a structured repayment plan be set up in which the borrower can successfully move out of debt.

When you do find yourself facing a situation in which you need money, doing some free research on the subject goes a long way toward securing your peace of mind and your savings. While the Internet might be a little daunting to search on your own, starting with your own state government is always the best place. Short-term loan legislation is primarily conceived by the state government and, as a taxpayer, you have free access to a number of resources provided to help you. Taking advantage of these can make the difference between successfully climbing out of debt and sinking deeper into it.