West Virginia Payday Loans

West Virginia Payday Loans

If you’re considering taking out a short term loan? We could be of assistance. Unfortunately, in West Virginia, they have effectively banned all payday loans. According to West Virginia law, traditional payday lending is generally not allowed. However, even though West Virginia payday loans are banned, not all types of lending are prohibited. Installment loans are quite popular among residents.

Can I get a Payday Loan in West Virginia?

No, you can not. Payday loans are prohibited under West Virginia Code 46A-4-107 and 32A-3-1 et. seq. This set of laws caps the APR a lender can charge at 31% for loans of $2,000 or less. It also applies to every lender in the state. The APR cap doesn’t include the allowed origination fee, which means your APR may be higher than 31%. But because payday lenders often charge APRs in excess of 400%, it effectively bans them from offering loans to residents of West Virginia.

However, this doesn’t ban installment loans or small-dollar loans. So you may be able to find an installment or personal loan option if you look carefully. If you do opt for an installment loan, always remember to check the terms of your loan agreement thoroughly. This is to ensure the lender is keeping within the legal APR limit.

What are loan alternatives in West Virginia?

West Virginia separates loans based on if they are unsecured or secured by real property — like your home or car. For unsecured loans between $2,000 to $10,000, the APR is capped at 27%. Regarding loans greater than $10,000, West Virginia limits the APR to 18%. For secured loans, the APR is capped at 27% for loans of $10,000 or less and at 18% for loans of $10,000 or more. These regulations are in place to help borrowers in West Virginia.

Can I get a Payday Loan in a different state?

Yes, you can—as long as payday lending is legal in that state. West Virginia borders five states: Virginia, Pennsylvania, Maryland, Ohio and Kentucky. It is legal not in Pennsylvania and Maryland, so your options are Virginia, Ohio and Kentucky.

However, do beware that because you are from out of state, lenders may be less willing to lend to you. Suppose you do not pay back your loan? The collection becomes more difficult for these lenders because you live out of state. So, these lenders are somewhat wary of lending money to out-of-state residents.