Illinois payday loan laws are set up to favor the lender, and one needs to be aware of these laws before a person takes a payday loan out.
The loan companies are allowed to write payday loans for between 13 to 45 days.
This coupled with the interest rates allowed, $15.50 per $100.00 borrowed, and the amount allowed to borrow, $1000.00 or 25% of the borrowers gross income, whichever is less, can lead to a one way trip to the payday loan trap.
A 14 day $100.00 loan comes out to an APR of 403%. This is a crazy APR and one should avoid these types of loans at all costs.
One good thing is payday loan lenders in Illinois are not allowed to write more than one loan at a time, so this does help curb the stacking of loans by any one borrower.
The payday loan laws in Hawaii are a bit on the lenders site.
They allow for 15% interest on the face of the check and lead to very high annual interest rates.
You can take out a payday loan in Hawaii for up to 31 days and roll overs are allowed within this time frame.
Of course, all fees apply to each rollover.
One must remember a rollover of a payday loan is just like a loan renewal, and a rollover fee usually always applies.
Total loan amounts in Hawaii are up to $600.00 maximum
.Many people are getting into trouble simply because the average rollover of a payday loan is 4 to 5 times before the payment in full of the loan is made, so this state does help by limiting the time frame to 31 days on rollovers.