States Control Bad Credit Payday Loans and Title Loans When it Comes to Interest Rate and Fee Caps

Posted on | August 2, 2010 | No Comments

Even though the financial regulatory bill has been signed and there will be much change in many financial sectors there may not be that much of a change for bad credit payday loans and title loans.  For quite some time the states have had the ability to cap interest rates or fees on these types of loans and that will continue to be the case going forward.

Some states set a maximum amount on the fee that can be charged on a same day payday loan.  It is important to realize that not all states do this as some allow the competition to set fees.  In the state of Nevada there is no maximum amount cap on fees or interest rates that can be charged on bad credit payday loans or title loans.


At the present time it does not look as if the financial regulatory bill will take the power out of the hands of the states.  Some states are very strict with this part of the financial services sector as they have banned payday loans altogether.  If more predatory lending continues it may be the case that many more states take actions such as this.

Author: Heather Best

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