Massachusetts Cash Advance Consumer Resource

Massachusetts is one of three states that does not allow cash advances. The other two states are Georgia and Maryland. Massachusetts also does not allow local banks to pair up with out of state cash advance companies to provide cash advance loans to consumers. Here are a few facts about Massachusetts and cash advances that you may not have been aware of.

Even though a cash advance in Massachusetts is not legal, there are companies online that have found a way, through loopholes, to offer cash advances to Massachusetts residents that are perfectly legal. In a very short period of time, you can have a cash advance loan deposited into your bank account that will help you through a difficult financial time. There is no need to struggle through a financial crisis, not knowing which way to turn, when there are options that will allow you to receive a cash advance in Massachusetts.

Cash advance services that are available online have secure sites that enable you to make your transaction with privacy and confidentiality. You only have to fill out a simple application and you will have the money you need in no time at all, without having to leave the comfort of your home. It is a quick and easy process, allowing you to receive the funds that you need even though it may be days until you get paid. A cash advance loan in the State of Massachusetts, despite the strict laws, is possible through the appropriate cash advance online service.

Rules, Regulations and Laws Regarding a Cash Advance in Massachusetts

• Massachusetts uses usury laws.
• Because of the fact that cash advances are illegal in Massachusetts, there are no cash advance companies in the entire state.
• Massachusetts has laws concerning cash advances that are different from other states. The maximum amount of a cash advance in Massachusetts will be capped at one-third of the net income per month. In other states, the maximum amount of a loan that a borrower can obtain at one time is capped.
• Massachusetts law also governs the amount of fees that a lender can charge to a borrower, and these fees cannot be higher than 15% of the loan amount. The fee structure must be posted somewhere at the lender’s location where borrowers will be able to see it.
• The annual percentage rate (APR) of a loan cannot exceed 23%.
• A written agreement must exist between the lender and the borrower, and this agreement must contain everything that the borrower will need to know, including the amount of fees that will be charged. This agreement must also state that a cash advance in Massachusetts should be used only for financial needs that will be of short duration and that it would not be in the borrower’s best interests to obtain more than one loan at a time, or problems in paying back the loans might result. Another fact that must be contained in the agreement is that the Division of Financial Regulation controls the interest rates that exist on cash advance loans.
• Borrowers have rights regarding a cash advance in Massachusetts and should know what their rights are as set forth in the agreement. The written agreement needs to state to the borrower that state laws prevent lenders from setting forth loan terms that are of a longer duration than two weeks. And the agreement is required to state that lenders cannot extend fees of higher than 15% of the value of the loan itself. One other thing that the written agreement must state to borrowers is the fact that they are able to pay off their loan any time before the due date without being penalized. Borrowers will also have a fee of $25 and no higher to pay for a returned check if they default on the loan payments.