Payday Loan Laws in Connecticut
Payday loans are small, short-term cash loans. Generally, consumers write a post-dated check
for the desired amount, in addition to an interest fee. The lender will hold onto the check until
the next payday (usually 14 days) and then deposits it. Consumers also have the option to return
with cash to reclaim the check. Or, in some cases, consumers can repay the loan with a signed
agreement which allows the lender to electronically withdraw the funds from their bank account
on a pre-determined date. Be aware that each state regulates its own payday loan laws. The
maximum amount of money you're allowed to borrow, interest rate, administration fees, and loan terms vary greatly.
Payday loan laws in Connecticut prohibit them all together. Be aware that
Connecticut residents do have alternative options available to them. Online lenders offer comparable
financial products, usually, qualifying consumers for a higher loan amount at a lower rate.
MoneyNowUSA works with over 150 different lenders that offer loan products comparable to a payday advance or personal loan.
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*Note: Payday advances are intended to be used as a last resort. First, weigh out all of your choices.
Some banks offer short-term loans for small amounts with reasonable fees. A cash advance on a credit
card may also be a viable choice. Be sure to shop around and do the research prior to making any decisions.
To contact The Connecticut Consumer Credit Division, call 860-240-8200 or visit
online.