Last Revised 04/04/2020
Microloans are payday loans that do not exceed the amount of $1,000 and are issued for a short period of time, which is nevertheless not shorter than 14 days (these estimates are subject to change from one state to another). Such loans can be applied for both online and offline, and it is up to borrower to decide which way is more convenient for them. In this article we bring together concise factual information about the legislature applied to such laws in different states. We will also dwell upon differences in applying for a loan using your computer and driving to the office of the lender company.
Every company with any name to it at all has its official website these days as the fastest and the most efficient way to reach customers wherever they are. Payday loan lender companies with online facilities win customers thanks to the elevated convenience of use, the ease of accessibility, and the absence of necessity to present hard copies of documents or any sort of deposit.
Even though payday loans used to have somewhat of a bad rep back in the day, as of several years ago this tide has been reversed in a meaningful way when the government issued laws and regulations called to protect customers from predators in lending business.
In California, the entity regulating the loan business is California Department of Business Oversight (DBO). The entire process is governed by the statutory citations Civil Code 1789.30 et seq. and Financial Code 23000 et seq. The basic guidelines of these documents can be summed up as follows:
DBO, the institution regulating issuing of payday loans in California, helps customers on all levels. Borrowers can check with DBO if the lender has had any disciplinary actions filed against them. If there is a complaint to be filed, it can be filed directly through the services of DBO.
All of the above regulations fixed in California legislation and implemented by DBO are there to protect consumers of payday loan from detrimental practices on the side of lenders. In particular, such regulations prevent lenders from dipping into the borrower’s account upon the loan expiration in case there are no sufficient funds for the borrower to face other expenses and having to eventually reapply for the loan.
The legislature of the state has identical stance on loans issued both online and offline. It is equally safe to apply for a loan at an office of the lender company and online, with the convenience of the latter beating that of the former. Consider that the offices of payday loan companies are open during the regular work day hours, and to visit one you would need to leave your own job, which is not always possible and is never desirable. It is also time consuming to go there in person, and add to the picture the documents you would have to collect and present to the lender alongside with some sort of a deposit many of them require.
Payday loans online are issued within a couple of hours. Another meaningful advantage of applying for a loan online is that through a service that brings together multiple offers, you will be able to get approved within several minutes, as well as have access to the best of the potential money lenders.