West Virginia Residents Have Options for Payday Loans

West Virginia Does Not Allow Payday Lending, But...

According to West Virginia law, traditional payday lending is generally not allowed. You're not out of luck if you need such a loan, though. West Virginians can still turn to internet payday lenders. They are based in other states where payday lenders are legally allowed to operate.

One way to think about it: If you apply for a credit card, the issuer is usually in a state other than the one you live in. For example, you might apply for a credit card from a bank based in New York, and that is allowed.

So, West Virginia residents in cities and towns such as Charleston, Beckley, Green Sulphur Springs, Kanawha Falls, Parkersburg and Saint Albans have options when they need quick cash.

Are Traditional, Smaller Loans Easier to Get?

Since West Virginia does not allow regular payday lending, you may be wondering if lenders such as banks and credit unions have looser regulations to help people who need small loans. Not really, but West Virginia does allow consumer lending. Loans can be for $2,000 or less, and there is a 31% annual percentage rate cap.

Lenders are not allowed to charge loan origination fees on this type of small loan. It is possible to get a loan for more than $2,000, but if you're seeking a payday-type loan, a traditional payday lender would not give you that much money anyway.

Traditional lenders in West Virginia follow similar guidelines and criteria as lenders in other states. However, credit unions as a general rule have more of an investment in local communities than banks do. You may be able to get a loan from a credit union more easily than from a bank.

Of course, there are several downsides to pursuing bank or credit union loans. One is that the loan amount may be too large for your needs. Another is the higher financial and credit requirements you have to meet. The loans can also take longer to process and be approved. There is not much you can do about the latter two downsides, but as for the first one, the loan amount, there is a workaround. Take out the loan for whichever amount, pay the bill(s) you need to, and begin to pay the loan back immediately. Do not spend the money you have left over after your bills are paid. Use that money to pay the loan back.

The process of getting a regular loan can be cumbersome. You may prefer to explore the following alternatives:

• Ask your employer for a paycheck advance.
• Get a cash advance on your credit card (make sure you understand any penalties or fees you may incur).
• Negotiate a different payment plan or new payment terms with the entities you owe.

Under the law in West Virginia, you cannot go to check cashing services with a postdated check and ask them to hold the check for you.

The Advantages of Getting an Online Payday Loan

Of course, you are able to explore internet payday loans when you live in West Virginia even though you cannot go to a state payday lender in person. The process should be quick, and you do not have to wait long to find out if you are approved. The money can be in your bank account as soon as the next business day.

Can You Get a Traditional Payday Loan in Another State?

West Virginia borders five states: Virginia, Pennsylvania, Maryland, Ohio and Kentucky. Can you travel to one of these states and get a payday loan there instead? Yes, you can—as long as payday lending is legal in that state. It is not in Pennsylvania and Maryland, so your options are Virginia, Ohio and Kentucky.

However, because you are from out of state, lenders may be less willing to lend to you. Suppose you do not pay back your loan. Collection becomes more difficult for these lenders because you live out of state. So, these lenders are somewhat wary of lending money to out-of-state residents. Rather than take your chances by traveling out of state, you can go through the internet lenders we connect you with. Only those willing to lend money to West Virginia residents will be offered for your consideration.

Check the State Law of Your Lender

If issues arise with your payday loan, the applicable laws belong to the state where the lender is—not West Virginia. For example, if a lender in Virginia makes the loan, you want to research Virginia's regulations beforehand. Here's the rundown:

• Maximum loan amount: $500
• Loan term: A minimum of two pay periods
• How many payday loans you can have at a time: One (in the state)
• Rollovers: Not permitted
• Repayment plans: OK, no extra fees can be charged, at least 60 days, at least four equal installments

Here are a few more numbers:

• $26.38 finance charge for a 14-day loan of $100
• 76% APR for a 14-day loan of $100
• 36% annual interest + $5 verification fee + 20% of equals the maximum finance rate and fees
• $25 collection fee if you do not pay the loan back plus attorney's fees of $250 or less

No criminal action can be taken in Virginia against people who do not pay back payday loans.

So, when you are comparing the various payday loan offers (assuming you qualify for a loan), keep state laws in mind. Some states have higher maximum loan amounts than others, and others allow higher fees and APRs than other states.

Here is some information on Ohio's laws:

• Maximum loan amount: $500
• Loan term: A minimum of 31 days
• How many payday loans you can have at a time: One, and only four per year (two-loan limit in 90 days)
• Rollovers: Not permitted
• Repayment plans: OK, no extra fees can be charged, 60-day period
• 28% APR for a 14-day loan of $100
• $20 collection charge, lenders can collect on court costs and damages after a loan default