If I took out a payday loan from an ut of state company, does it need to be licensed in my state?
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If I took out a payday loan from an ut of state company, does it need to be licensed in my state?
And can it charge interest rates base on my state’s limits?
Asked on September 18, 2012 under Bankruptcy Law, Illinois
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If the loan from the payday company that you received was obtained in your state of residence then under the laws of your state this payday company must comply with your state's laws. If your state mandates a license for the payday company then it is required to have one.
Also, the rate of interest that can be charged you by this payday company is limited to your state's laws on the subject since the loan was obtained in your state.
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