It’s no secret that times are tough for Americans right now, especially those that live in small cities like Detroit, Illinois. It is always devastating and stressful when your financial life suddenly gets turned upside down, and a lot of times you may feel like you have nowhere to turn. You might feel overwhelmed by all the options available for cash advances or worried about how to get a legal and safe cash advance. Well, luckily for those in need, Illinois laws make getting a cash advance in Detroit a simple and safe process.
Most of the laws regarding payday loans in Illinois are in place to protect consumers from predatory lenders — in fact, Illinois passed new legislation as recently as 2010 closing major loopholes that had previously left consumers vulnerable to aggressive lender tactics and crippling interest. Of course, some of these predatory companies are still relying on people’s ignorance of the law to take advantage of them, so make sure that you know your rights before getting your loan.
The first thing you need to know is that there is a cap on how much you can borrow: $1,000, or 25 percent of your monthly salary, whichever is less. Also, although you can have up to three outstanding payday loans at a time, you can only have up to $400 in total debt with all of your lenders.
When it comes to borrower’s rights, you’ve got protection in two major areas; fees and rollovers. First, in terms of fees, Illinois borrowers have it good — lenders can only charge $15 for the first $100 borrowed, and then after that only $10 per each additional hundred. When compared to most other states where fees like this range from $15 to $30 per $100, it’s a clear advantage to borrowers. Additionally, lenders can only charge a maximum of $35 in finance charges per advance, which means that after the first $300 dollars or so you are not going to be charged a finance fee. Finally, lenders cannot levy additional charges on loans that are in default and members of military are protected from wage garnishment in relation to a cash advance.
Illinois consumers have a lot of protection when it comes to rollovers too. Although rollovers are allowed (at the lender’s discretion), you can only have three per advance, and the new loan still has to be less than 20 percent of your monthly income. Additionally, before a rollover can be legally allowed, the principal of the original loan must have been decreased by 25 percent. This sounds like a lot of restrictions, but actually, these laws are in place to keep lenders from taking advantage of desperate customers and entangling them in ongoing debt.
So although getting a cash advance is not the kind of life experience that most people look forward to, if you have to get one then Illinois is a good place to do it. Just remember the rules and your rights, and you will find that getting a safe and legal cash advance in Detroit is very doable.