If you’re doing loans inside a storefront or on the Internet, there are some new laws in effect January 1st.
Here are some general rules:
- No more title loans.
- No interest rate cap on payday loans.
- Minimum term (as of now) is 90 days.
- Max principal and interest is $1,500.
- State database in place (maybe Veritec).
- Must maintain customer files for 3 years (2 years in other states).
- No late fees.
- Can take debtors to court, but no wage garnishment or criminal prosecution.
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