Access Upto $600 Via Payday Loans Hawaii No Hard Credit Check

Hawaii is best known in the world as the land of chilling out, eternal sunshine, and tourists in tropical button up shirts, so it is no surprise that residents of the Aloha State are earning pretty well through leisure industry as compared to the rest of the United States. 2016 stats reveled that 9.3% of Hawaiians lived at or below the federal poverty line which was 1.3% less than the 2015. It further illustrates that less than 18,000 Hawaiians are currently living in poverty making this state with the 2nd lowest poverty rate in the U.S.
However, 18,000 people are still living paycheck to paycheck, wondering where their next meal will come from, how they’re going to pay their rent this month, or how they will handle emergency expenses if in case they will show up unexpectedly. That’s why they need to rely on payday or title loan in order to make ends meet. A payday loan is a short-term, unsecured loan, offering up to $600 as per applicant’s request in Hawaii. It suits best for the consumers who have bad credit or no credit, and cannot access traditional forms of financing like credit cards or traditional bank loans. Often, the interest and fees on payday loans are sky high, and one can end up paying significantly with more than the amount borrowed initially.

History of Short Term Payday Advance Loans in Hawaii

Payday lending laws were cataloged in Hawaii for the first time in 1999, when the State Legislature passed a law to exempt payday loans from the state’s overall usury law, which capped interest rates for loans at 24% per year. The new bill “deferred deposits,” effectively allowed payday loans in Hawaii. In 2006, the U.S. Congress passed a law to limit the instant cash loans to active military service members and their families to a maximum of 36% APR, which result into decline of predatory lending practices. While this law was good for military families, it failed to protect common citizens from getting trapped of predatory lending.

The currently practiced national regulations on payday loans in Hawaii are active due to the Dodd-Frank Act, enacted by Congress after  2008 financial crisis. The Dodd-Frank Act restricts payday and car title lenders through federal oversight. However, recent regulation has been introduced in the United States Congress in the form of the Financial Choice Act, aiming to modify these regulations in order to increase protections for payday lenders. This bill could also have a worsening effect on Hawaii’s payday lending regulations in the future, leaving consumers at the mercy of predatory loans.

Hawaii Payday Loan Rules and Regulations

• Legal Status: Legal
• Interest Rate (APR): 460%*
• Minimum Loan Amount: Not Specified
• Maximum Loan Amount: $600
• Minimum Loan Term: Not Specified
• Maximum Loan Term: 32 days
• Finance Charges: 15% of the amount advanced; <$17.65 for $100

Information for Consumers

• One NSF(Non Sufficient Funds) collection fee not exceeding $20 can be charged.
• A lender is prohibited to take any criminal action against a borrower in case they fail to do repayment in time. Exceptions are always there is case a person closes the account before the loan is repaid or orders the bank to terminate the repayment purposefully.

In the state of Hawaii, it is the Hawaii Department of Commerce and Consumer Affairs that is in charge of all the issues connected with payday lending. The consumer can connect with the same for all the questions and complaints.