As one of the hardest hit states from the economic recession of 2008, Nevada has had to take precautionary measures to protect out of work citizens. In a state with one of the highest unemployment rates in the entire country, many people have been turning to payday loans in order to fill the gaps between what they have saved and what they need to feed their families. With this large amount of debt are outcries to fix the payday loan laws in Nevada to match what the people need protection. This can take many forms, but we will try to explain the details of the Nevada law reforms that might impact your life.
Payday Loan Laws in Nevada Fees and Finance
The law in Nevada for fees and finance rates for payday loans is a double edged sword. In some cases it is used effectively to protect citizens from very quite rates that could cost them a lot of money and problems. In other cases, the payday loan laws in Nevada are less strict than others, which allow lenders an advantage in some cases. The reason this is the case is because of the law that allows lenders to give 25% of the borrowers gross monthly income. For the majority of the poorer people that borrow money from lenders, this is a good way to keep their levels of debt down. Many will be unable to get the $500 that most other states offer with this 25% stipulation. However, many of the people who currently have jobs that are tentative might find this to be a huge problem. There is no limit to how much 25% can be, which means that some people will invariably fall into debt problems.
Licensing Payday Loan Laws in Nevada
In addition to these unique fees and finance rules, the licensing laws are also quite interesting. The payday loan laws in Nevada about licensing allow specific companies that have gone through the proper channels, but the density of online lending companies is high. Most states only have a couple online licensed companies, but the state of Nevada has many. In fact, there are six (CashCentral, CheckCity, ChecknGo , PayDayOne, QLoot, and SpeedyCash) that operate in the state of Nevada. This brings into question whether or not the payday loan laws in Nevada are as strict when it comes to licensing as they should be in order to protect all consumers.