Nevada Payday Loans

Nevada is one of the states that allows payday loans, also known as deferred deposit loans. These are short-term loans that are usually due on the borrower's next payday. Payday loans are regulated by Nevada Revised Statutes Chapter 604A and Nevada Administrative Code Chapter 604A.

According to these laws, payday lenders in Nevada must be licensed by the Commissioner of Financial Institutions and follow certain rules and limitations. Some of these rules are:

- The maximum loan amount is 25% of the borrower's gross monthly income or $1,000, whichever is less.

- The maximum loan term is 35 days, but it can be extended for up to 60 days with no additional fees.

- The maximum finance charge is $20 per $100 borrowed for loans up to $250, and $7.50 per $100 borrowed for loans over $250. The annual percentage rate (APR) for a 14-day loan of $100 is 521%.

- The lender cannot charge any fees for a grace period of at least 90 days if the borrower cannot repay the loan on time and agrees to a repayment plan.

- The lender cannot initiate any legal action or criminal prosecution against the borrower for defaulting on the loan.

Payday loans can be a convenient way to get cash quickly, but they also come with high costs and risks. The average cost to the consumer for a payday loan in Nevada is $173.75 per $100 borrowed, according to a report by the Center for Responsible Lending. This means that a borrower who takes out a $300 loan and pays it back in two weeks will end up paying $521.25 in fees and interest.

Before taking out a payday loan, consumers should consider other alternatives, such as asking for an advance from their employer, borrowing from family or friends, or seeking help from a credit counselor or a local assistance program.