Vermont Payday Loans

Vermont Payday Loans

If you live in the state of Vermont are looking for cash, we’re here to tell you about the laws and regulations that you need to know. Unexpected bills can happen at any time and you may need a little help to pay them off in time. However, when it comes to Vermont Payday Loans, they can be difficult to get hold of. Payday loans are ideal for when you need to pay for an unexpected car and home repairs, medical emergencies and other non-recurring bills.

Can I get a Payday Loan in Vermont?

No, payday lending is prohibited in Vermont. Vermont Statutes Ann. tit. 9 § 41a, the small loans act, applies to all small loan lenders in the state. It states that lenders must abide by a strict 18% APR cap.

In addition, 8 V.S.A.§ 2519(a)(13) states that lenders aren’t permitted to hold checks for future deposits. This means a lender can’t cash or advance money — whether it’s a physical check or an ACH transfer from your bank account. And while some lenders use loopholes in Vermont law to provide online payday loans, they are taking steps to prevent this in the future.

What costs can I expect with a loan in Vermont?

In the state of Vermont, payday loans are explicitly banned. The first law was enacted in 2001. However, Vermont is famous for having enacted the “strongest law in the nation” with regard to payday loans in 2012 that effectively drove all storefront lenders away from the state. Unlicensed lending is presently illegal, all licensed lenders must comply with the 18% APR loan cap.

Alternatives to Vermont Payday Loans

With some difficulty in getting payday loans, some borrowers may opt for other means of obtaining quick cash. A very good option is by or pawning them off in shops. Friends and relatives are also viable options and wouldn’t ask much in terms of interest rates. There are also credit cards which can deal with small expenses. Banks loans are a good option if you need to borrow large amounts of cash.