Rhode Island Payday Loans

Rhode Island is one of the states that allow payday loans, which are short-term loans that are usually due on the borrower's next payday. Payday loans can be a convenient way to get some quick cash, but they also come with high fees and interest rates. Here are some important facts about payday loans in Rhode Island:

- The maximum amount you can borrow is $500.

- The minimum loan term is 13 days and there is no maximum term.

- The lender can charge up to 15% interest, which means $15 for every $100 borrowed.

- The annual percentage rate (APR) for a 14-day loan of $100 is 390%.

- You can have up to three payday loans at a time, but the total amount cannot exceed $500.

- You can cancel the loan by returning the full amount by the end of the next business day after you receive the loan.

- You can request an extended payment plan once in a 12-month period if you cannot repay the loan on time.

- The lender cannot charge any additional fees or interest for the extended payment plan.

- The lender cannot take any criminal action against you if you default on the loan.

Payday loans are regulated by the Rhode Island Department of Business Regulation. If you have any questions or complaints about payday loans, you can contact them at:

Department of Business Regulation

Division of Banking

1511 Pontiac Avenue

Cranston, RI 02920

Phone: (401) 462-9503

Fax: (401) 462-9532

Email: dobd.bankinquiry@dbr.ri.gov

You can also find more information about payday loans and other financial services on their website: https://dbr.ri.gov/divisions/banking/

Payday loans are not a long-term solution for financial problems. They can be very expensive and risky. Before you apply for a payday loan, you should consider other alternatives, such as:

- Asking your employer for an advance on your paycheck or working extra hours.

- Borrowing money from your family or friends.

- Applying for a personal loan or a credit card with a lower interest rate.

- Seeking help from a credit counseling agency or a financial planner.

- Creating a budget and saving money for emergencies.

Payday loans are not for everyone. You should only use them if you are sure you can repay them on time and in full. Otherwise, you may end up in a cycle of debt that is hard to break.

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