How Payday Loans in Louisiana Work
Louisiana is in the heart of bayou country and is right along the shores of the Gulf of Mexico and the Mississippi River. This state has a strong heritage of diverse cultures and is the prime spot for Mardi Gras each year. It offers plenty of music, incredible food, fishing and history. There are lots of growing cities in Louisiana where residents consider using payday loans, such as New Orleans, Baton Rouge, Lafayette, Shreveport and Lake Charles.
Even though Louisiana is in the deep south, the cost of living is about average. Some things may be more expensive than average in this area, and wages aren't always high enough compared to other places like the west coast or northeast. Housing is a little cheaper in Louisiana, but other costs, such as utilities, gas, groceries and other expenses can be pricey. Additionally, flooding in this region has been a problem for a long time. Some individuals have struggled to get back on their feet financially because of historic floods or disasters such as Hurricane Katrina.
For consumers thinking about payday loans in Louisiana, there are several things to know before choosing a lender. Here are the facts about payday loans.
Why Louisiana Residents May Consider a Payday Loan
For some consumers, getting a payday loan every so often is common. If you don't have a big amount of savings and your monthly costs are unusually high one month, a payday loan makes sense as a temporary solution. Payday loans are usually taken out more often by people in lower income brackets because of the lack of extra income left over each month, little or no savings and fewer financial resources.
For someone who may not be able to secure a credit card or get a bank loan, a payday loan is an option. Additionally, payday loans make sense when you need money quickly to cover a one-time car bill or medical expense that came up unexpectedly.
People who take out payday loans may also find them easier to manage than other, bigger loans. They are limited in the amount you can borrow, making it more realistic to pay back. They are also more like paycheck advances for money you will soon have, giving people a little more peace of mind, instead of a loan that is less affordable.
Rules for Louisiana Payday Loans
Payday loans can only be taken out in specific conditions. Because the industry and state regulators want to make sure consumers don't get saddled with debt, payday loans have rules. Here are payday loan lending rules for consumers in Louisiana:
- Maximum amount for payday loans: $350
- Loan term length: 60 days or less
- Rollovers Permitted: No
- Fees and finance charges: 16.75% of the face value of the paycheck but not more than $45 and a $10 documentation fee
- Finance charge on a 14-day loan of $100: $30
- APR on a 14-day loan of $100: 780%
- Collection fee: One fee can be added on if it is disclosed in the paperwork
- Criminal charges: not allowed
How Louisiana Payday Loans Work
Payday loans in Louisiana have a smaller limit than other places, $350. Loans can be taken out consecutively and in multiple transactions because there are no laws prohibiting that. While most rollovers aren't allowed, Louisiana does allow partial payments of loans and any associated fees in order to roll into a new loan.
Payday loans are made for 60 days or less in Louisiana. In this state, if a borrower doesn't pay back the loan, collection fees can be added if this information was disclosed in the paperwork. Court costs are also potentially the borrower's responsibility as well as attorney's fees.
The typical 14-day loan of $100 might have $30 added on as finance charges. Interest charges can be as high as 780% APR for loans in the payday industry in Louisiana. Additionally, fees of 16.75% of the face value of the paycheck amount may also be added to the cost of the loan.
Criminal charges aren't allowed to be brought up for borrowers related to payday loans. People who suspect they may have a problem with their lender can go to Louisiana's Office of Financial Institutions for help. This agency is in charge of the state's payday loan industry.
What makes Snappy Payday Loans different?
We're working hard to restore the reputation of payday loans, cash advances and other short term lending services. We believe that all kinds of people should have access to the financial products which can help them to deal with unforeseen expenses even if they have less than exemplary credit records. Unfortunately, the reputation of payday loans in Louisiana has been marred by less than reputable lenders who prey on the financially vulnerable.
If you've made the informed decision to take out a payday loan you can do so safe in the knowledge that Snappy Payday Loans can help you do so in the safest way possible. Remember we are not a payday lender. Instead we put you in touch with the right payday loans direct lenders in Louisiana to suit your needs, helping you to make a well informed and zero-obligation decision that's right for you and your household.
Louisiana Laws for Payday Loans
Louisiana state lawmakers don't regulate the payday industry as heavily as other places do in the country. As a result, lenders have more flexibility and consumers may have to be more careful about their borrowing. In the early days of payday lending, before 1990, interest rates were capped at 12% APR.
By the middle of the 1990s, the payday loan industry started making strides in helping them earn more profits. The Louisiana Deferred Presentment and Small Loans Act was passed. This law exempted payday loan operators from the 12% interest rate cap and allowed them to have much higher fees and rates.
In 2010, Louisiana again gave payday loan operators more power with an additional allowance for higher interest rates. By 2014, some lawmakers were advocating for lower interest rates and tried to pass a law capping interest at 36%, but that law ultimately failed.
The federal government has mandated several regulations that all states must follow, including Louisiana. In 2006, the Military Lending Act put some new regulations on payday loans in the state just for military members. From that point on, military members couldn't be charged more than 36% for payday loans. Instead of having their wages garnished, lenders would have to seek repayment a different way for military members. Deployed members could have their loans frozen until they returned back to their home state of Louisiana.
The government also will have new regulations starting in 2020 for all states that have payday loan operators. The Consumer Financial Protection Bureau is responsible for making sure these regulations are followed. These regulations hold lenders more accountable for checking to see if a borrower is capable of repaying the loan under the terms. Debits are also more closely regulated in regards to payday loan repayment. A customer's debit account cannot be used once two payments have been declined. This helps prevent the additional insufficient fund fees from piling up and making a bad debt situation worse.
Louisiana Payday Loan Businesses
Payday loans are popular across cities like Baton Rouge, New Orleans, Lake Charles and Shreveport. Louisiana has the sixth highest rate of payday loan participation by consumers in the nation. There are 936 payday loan operators across the state. Licensing for payday loan lenders in Louisiana is a little more flexible than other spots, giving more companies the ability to compete for a customer's business.
The business-friendly environment in Louisiana is one reason why lawmakers tried to loosen payday regulations in 2018. The state Senate passed a bill called the Credit Access Loan Act. The bill proposed raising the maximum loan amount to $875 and extended terms up to 12 months. That law ended up not passing, but the House also introduced a similar bill called the Louisiana Installment Loan Act. This bill tried to raise the loan amount maximum up to $1,500. Loan terms could go as long as 12 months. While this bill also failed to pass, the trend in Louisiana continues to veer toward fewer regulations for the industry. Consumers will have to make sure they understand the terms of all agreements and work with companies that have a strong reputation in order to benefit.
How the Loan Process Works
When you apply for payday loans through our website, the process is completely secure and confidential. Our 128-bit encrypted connection transmits your application to our partners without the risk of interception by third parties.
We pride ourselves on our simple, streamlined application process. Most people are approved if they meet the following requirements:
- Have an active checking account in good standing
- Are a permanent resident or citizen of the United States
- Are age 18 or older
- Have had a job for at least one month
- Can supply a working phone number and email address
The Types of Lenders Available
You can get payday loans and cash advances in Louisiana either online or in person. Scores of brick-and-mortar lenders operate in Louisiana, and some of these lenders also operate online. You can go in person during the lender's business hours or call the lender and begin the process that way. Alternatively, you can fill out an online request form if the lender has one.
Then there are online-only companies such as Snappy Payday Loans. We offer a variety of helpful features:
- With our quick service, most loans distributed within one business day.
- Loans are deposited right into your bank account.
- Lenders are often willing to work with applicants who have bad credit.
- You only have to fill out a simple online form.
We do not loan you the money, but we use the information you submit to match you with a direct lender (assuming you qualify for a loan). This online option is convenient because you don't have to leave your home and wait in line or wait for a business to open. We process applications on secure servers 24 hours a day, seven days a week.
If you want a loan as soon as possible, check out our easy online form. Start the process here, and see if you're matched to a lender. If you don't like the rates or terms proposed, you are under no obligation to accept the offer. It's a win-win situation in which you get to see whether you qualify and what the terms are like.
Kelly Stone - President
Kelly Stone - President
Kelly is a graduate of Northwestern University's Kellogg School of Management with a Master's Degree in Finance. She began her career in the short-term lending industry in 1996. Starting with one store, she grew the business to over 50 storefronts offering payday loans. As the industry started to shift online, she changed gears and started Snappy Payday Loans, allowing consumers nationwide to apply online for a payday loan. Through relationships and time, Kelly has built a large network of lenders that offer loans that Snappy utilizes today.