In researching Montana and payday loans and payday loans from other states, I keep seeing a pattern of different laws for different states.
While I am all for each state being independent and able to regulate their own states laws, I keep seeing one thing all these laws have in common. They are all written to the lenders favor. It makes you wonder who is really writing these laws and who is influencing them when the elected officials are writing them .
What are Montana's laws?
You may take out a payday loan in Montana for up to 31 days. You may have up to 2 payday loans with any one borrower at one time and you may roll them over. This could lead to many payday loans, no ability to keep up with them, in other words the classic payday loan trap. All red flags that can lead to serious financial problems.
How bad are the interest rates and fees?
The interest on a Montana payday loan must not exceed 25% of the borrowers monthly income, per loan. So in essence 4 payday loans could eat up your whole paycheck on one due date. Not a very good law for the borrower.
These companies are nothing but legal loan sharks without the bat. They substitute the bat for aggressive and unethical collection practices.
What does that mean?
That means if you default on your loans, not only do you have to deal with your bank and all the fees and charges from banging one or more checks, and do not forget the the places you wrote those checks, you get to deal with non stop phone calls to you, your employer, your references you put on the loan application, and many times threats of legal action. A very ugly picture, but a true one.
What can I do?
First and foremost, if you do not have any payday loans, keep it that way! Do not use these companies at all costs. If you have a payday loan, pay it off in full as soon as possible and do not ever use them again. They are just not worth the months and months it may take to get out from under them.
What if it is too late?
If you are in trouble with too much payday loan debt take a deep breath and get hold of a payday loan debt consolidation company. These guys are great at stopping all the collection activity and setting you up on low monthly or bi monthly payments that will give you some breathing room on your paydays and get you back on track.
I hope this article on payday loan laws in Montana state helps you to make smart decisions when considering using these companies, and if you are in trouble with payday loan debt use this information to help you get out from under your payday loans.
Please feel free to share this information and leave any questions and comments below!
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