When you have unplanned expenses and are on a tight budget, a payday loan could be helpful. Payday loans, a type of short-term loan, give you quick access to money when you need it. Read on to find out about the laws in West Virginia and everything else you should know about how payday advances work.
West Virginia has effectively banned payday loans, but it does offer a few programs that could be useful in your time of need.
Can I get a payday loan in West Virginia?
No, payday loans are prohibited under West Virginia Code 46A-4-107 and 32A-3-1 et. seq. This set of laws caps the APR a lender can charge at 31% for loans of $2,000 or less — and it applies to every lender in the state. The APR cap doesn’t include the allowed origination fee, which means your APR may be higher than 31%. But because payday lenders often charge APRs in excess of 400%, it effectively bans them from offering loans to residents of West Virginia. However, this doesn’t actually ban small-dollar loans, so you may be able to find a personal loan option. If you do opt for a personal loan, check the terms of your loan agreement to ensure the lender is keeping within the legal APR limit.
What other options are there in West Virginia?
Although West Virginia has placed restrictions on payday loans, there are still many options for individuals and families in need.
- Supplemental Nutrition Assistance Program (SNAP)
- WV WORKS
- Emergency Assistance Program
- Non-Emergency Medical Transportation (NEMT)
- School clothing Allowance
- Low Income Energy Assistance Program (LIEAP)
- Long Term Care
- WV Children’s Health Insurance Program (WV CHIP)
What do other types of loans cost in West Virginia?
West Virginia separates loans based on if they are secured by real property — like your home or car. For unsecured loans between $2,000 to $10,000, the APR is capped at 27%. For loans greater than $10,000, West Virginia limits the APR to 18%. For secured loans, the APR is capped at 27% for loans of $10,000 or less and at 18% for loans of $10,000 or more.
While these regulations are in place to help borrowers, it does mean you’ll find some personal loan lenders don’t operate in West Virginia.
Although you can’t technically get a payday loan in West Virginia, there are other options available to you. These include some small-dollar loans, like loans from your bank and installment loans from a short-term lender. Read your loan agreement and confirm the lender is licensed in West Virginia before you agree to borrow.
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