Payday loans in Maine is not considered safe financing
The state of Maine does not have any available providers of payday loans because the practice is outlawed in the state. Maine’s state laws prohibit anyone, including a check cashing service, from cashing or advancing any money on a postdated check and calling this service any type of loan. All loans in the state must be made by a licensed lender and must comply with the laws that govern small loans.
The state of Maine has laws in place that cap interest rates on loans whether they are small loans or large loans. On small loans the state has a mandated interest rate cap of 30% calculated annually.
A supervised small loan lender can provide a service that is similar to payday loans, but is barred from originating a typical cash advance loan on a post dated check. The small loans that are similar to payday loans have fees that are strictly mandated by the state.
The fees for a loan up to $75.00 cannot exceed $5.00. Loans that are for $75.01 to $249.00 will have fees that are not allowed to be over $15.00 and all loans from $250.00 to $2000.00 are required to have fees that do not exceed $25.00.
Some people in the state have gone around these laws by getting payday loans from an online service, but even then they are operating in a legal grey area. The only reason online providers of payday loans are still able to operate happens to be because their legality has not been challenged in court.
If you live in Maine and you need short-term financing, getting payday loans online might be just what you need. Consumers in the state should be warned that as many states in the nation try to crack down on payday loans, Maine might start to take a closer look at online providers. People in the state that use these services might be putting themselves in legal jeopardy.
There are better ways to get short-term financing in Maine. One easy way to find out what you might qualify for is to simply talk to your bank. Some financial institutions in the state have all kinds of loans that can help consumers in a pinch.
The chances that the state will ever allow lenders to provide payday loans are so slim that if you held your breath you would be sure to turn blue and pass on. This is good news for low income families especially, who tend to be the primary targets of predatory lending practices. Safe financing options in Maine do not include payday loans.