Other Pay-Day Loan Programs
The listings that appear at the top of Google search results for "payday loan software' are 'paid ads' which are usually proffered by vendors offering very high-priced programs. In effect those who purchase their programs are paying for the ads. This will be especially true of 'web-based' software which carries a never-ending payment which often results in paying over $1,000 per year just to use software. Currently the names of the domains with paid ads are loan-servicing-software, trandotcom, openclose and nortridge. Conversely the website listings appearing below the paid ads are ranked by Google's algorithm and have absolutely nothing to do with software evaluation and cost. Those listings currently include ecashsoftware, introxl, echecktrac, smallloansoftware and idealfinancialsoftware. Don't bother with 'Capterra' - a 'software-review site' that has probably never even downloaded a software program let alone 'reviewed' it.
Help Me Choose a Payday Software Program
Naturally every software developer claims to have the best solution for every single payday business but as a practical matter that just isn't going to be true, not so much because payday lending is so much different from one store to the next, or one state to the next, but because budgets are different and special considerations must be taken into account.
Let's first assume that any software program is going to get the job done - keep track of individuals and their transactions, print agreements and process reports. If faddish bells and whistles aren't needed there's certainly no sense in paying for software features that cost more.
A first thing to note is that Google as well as most 'software review sites' have not downloaded much less evaluated any software program. The order in which websites offering software appear in Google (or other search engines) have absolutely nothing to do with the price, quality or reliability of the software vendor or program. Likewise comments published on review sites may have been made by actual users but by now we all know that faking reviews is a widely-known problem: Competitors write bad fake reviews. Software providers pay their customers (one way or another) to write reviews (because most people aren't motivated to write about good experiences) so it's common for them to be offered freebies, discounts and other incentives to make the effort.
Unlike days of the past another option that didn't exist is software that resides 'in the cloud' on a computer somewhere that is accessed through the Internet using a browser. The software is NOT installed on the shop computer when the shop owner has control and can still pay once for the software. Before considering a web-based program it would be advisable to check with regulatory authorities to confirm that Internet software is allowed. (Some jurisdictions may disallow it for security concerns.) Perhaps the loudest objection to cloud programs is the concept of renting the software - endless monthly payments as well as increases in payment for additional users, multiple locations, added features - such pricing requires thorough investigation before getting locked into the software. (Locked in? Yes, every program has a learning curve and once conquered, shop owners and employees are reluctant to go through the strain again just to get away from escalating software costs.)
Also it was more true in the past that an old, well-established business might have been more reliable, dependable, likely to be around in the future - important for software because changes in technology and software improvements require that the program in use be updated to keep up. Because software code is proprietary it's unlikely that any other programmer could access much less understand the workings of another.
A grave disappointment to many who purchase software is the discovery of fees after purchase that either weren't disclosed at all or that were quietly mentioned underneath the barrage of sales hype. It would be nice if choosing the right software program were a simple process free of buyer's remorse, but in general, those pushing the hardest are after the highest flow of funds from your shop to their bank account.
Also it's obvious that no major software developer offers payday lending software, leaving the niche industry somewhat under watched by regulators so it's not surprising that derogatory comments about competing programs is part of some sales pitches. It might be safe to say that such behavior may be an indication of the way of doing business and how you might expect to be treated after the money-back period.
Take some time to outline what you would like for a program to do. Do you really need to send emails from within the program? If so at what cost? What's the cost of 'mobility' and can that kind of flexibility be found through free services? Especially with payday loans, the transactions are simple enough so should be the software and in turn, the price should be reasonable.
It seems necessary to point out the long-term cost of any program that is open ended, i.e., payment never ends for as long as the software is in use. How long do you anticipate being in business? How many months? Multiply that by the cost per month (now) and what the cost per month could be in the future to get the true cost of any software program.
And a final thought - if it's your intention to one day sell the business, it would certainly be a selling point to have software in place and show the prospective buyer how easy the program is to use. The complication that may present itself is the ongoing obligation to continue payments. Look for a program that is available for a one-off payment.
Nortridge Pricing and Cost
Looking for prices of Nortridge Loan Servicing Software? On the FAQ page (not linked from the home): "For as little as $340 per month...". That's all that can be found about pricing on the website with a cursory investigation. All roads link to a demo offer and a phone number so if you want to know more, it looks like exposure to a sales pitch is necessary.
How long must the monthly payment be made? For as long as the software is in use. It's 'software as a service' (SaaS), a notion that software developers have become eager to latch onto as a means of deriving a forever stream of income from software users to software company.
Can the monthly payment be raised? That's an important if not frequently-asked question which ironically is not disclosed on the FAQ page. Generally if no promise is made in the software agreement (End User's License Agreement or Terms of Service) it's likely that the provider reserves the right to hike it up and of course you could quit at any time, buy and learn another software program and hope that your data could be transferred. Software vendors, having been around that block many times over, are keenly aware of the circumstances that can and do unfold once a business is locked into the software. Not making accusations - just pointing out an important question that needs to be posed.
Software providers looking to lure new customers offer pacifiers like this from Nortridge: "Nortridge is available as Software as a Service (SaaS), meaning you don't have to buy an up-front license..." So it's better to pay a minimum of $340 per month than to make one payment for a simple program like Best Payday Loan Software (currently $595) - if the latter processes payday loans (It does.) and that is basically all that is needed to manage and service your loans.
Payday Loans in Mississippi
The payday loan maximum in MS is five hundred dollars ($500). The borrower may write checks from multiple accounts but the total cannot exceed $500 and there must be a Delayed Deposit Agreement for each.
Each individual on a joint bank account may write checks in an amount not to exceed a total of five hundred dollars ($500.00) per person. A Delayed Deposit Agreement must accompany each.
The longest allowable loan period is thirty (30) days for amounts up to two hundred fifty dollars ($250). For loans ranging from two hundred fifty ($250) to five hundred ($500) the loan period is twenty-eight (28) to thirty (30) days.
The maximum finance charges in MS are:
- Up to two hundred fifty ($250) - twenty ($20) per one hundred ($100)
- Two hundred fifty ($250) to five hundred ($500) - $21.95 per one hundred ($100)
A lender may charge thirty dollars ($30) once for insufficient funds when cashing the borrower's repayment cheque.
These are sample loan schedules of one Mississippi lender:
- $50 to $200 bi-weekly (14 days) and APR of 521.43%
- $50 to $200 monthly (30 days) and APR of 243.33%
- $250 to $400 monthly (30 days) and APR of 267.06%
The State's formula for APR computation is fee ÷ loan amount x 365 (or 360) ÷ days in loan period = APR.
On loan documents (agreements) interest is disclosed and expressed as an Annual Percentage Rate (APR) - perhaps an attempt by law makers to emphasize the usurious nature of the cost of payday loans - 521.43% interest! Who would pay that? ('Usury' is (illegally) lending money at unreasonable interest rates (synonymous with 'extortionate money lending', 'payday lending', 'loan-sharking' or 'shylocking').
Sample Agreement Wording
You promise to pay us the Amount Advanced, the Service Fee and other permitted charges, according to the terms of our disclosure set forth below. You acknowledge and agree that you are indebted to us in the amount of the "Total Payments" that you have agreed to pay. The Service Fee and that the amounts set forth in our disclosures are not in dispute and that you do not have any defense to make payment of such amounts. On the date states in your payment schedule you will pay us the amount stated at the address indicated above or at such address as we direct to you in writing.
Customizable Payday Loan Agreements
Payday Loan Software includes 'text files' which it reads to know where and what to print on the loan agreement. The files can be edited to change print location and the information to appear on the agreement. When editing it's best to use a simple text editor like Notepad to avoid having unwanted characters and formatting that can happen with editors like Microsoft Word.
There are 6 text files resident in the program folder for payday loans, cashed s, pawn, buy outright and pawn due-date reminders. They reside in the program folder which by default is located at C:\PPSS. The default payday ticket is named payday-ticket.txt. Clicking on that file should open it in the default text editor designated in Windows.
A typical line of code in the file might look something like this with values separated by '~' (tildes):
- The first number (9 in this example) is the number of the line - mostly meaningless except to keep the code organized.
- The second number (2170) is the distance from the top of the page the content of the line will appear when previewed or printed. The typographical unit of measure is a 'twip' (short for 'twentieth of a point') which is 1/1440th of an inch, so it takes a lot of 'twips' to move a line appreciably. In this example line 9 will appear on the page 2170 twips (or 2170/1440 = 1.5 inches) from the top of the page.
- The third value (9180) is the distance in the same unit of measure from the left side of the paper. What is contained in this space (content) will appear on the agreement 6.375 inches to the right. (more on 'what' will appear in a bit)
- 'Content' is contained in an invisible 'box'. (If the last number in our example (0) were changed to a one, the borders of the box would be displayed in preview and print.) '315' represents the height of the box, in this case a little more than .2".
- 'Content' is represented by a number (assigned by programming to the value that is to appear in the box). In this case '7' has been assigned to the customer's phone number.
- The last character (0) instructs Windows to not show the box's border.
When the software user instructs the program to print a ticket, the program looks to Program Setup to know which version of the agreement to use then reads each line of code to know where to place what information.
Multiple variations of any ticket can exist. The ones to be used by the program are designated in Program Setup > Pawn Etc.
Naturally those in the payday-loan business are not expected to master formatting agreements and tickets. Each can be customized to meet legal requirements and include verbiage required by shop owners.
How do I start a payday loan business online?
An online business will be considerably more difficult largely because there is far more competition for 'keywords' related to payday loans. Even before considering operating on the WWW it is possible to research the degree of ease or difficulty in ranking highly for the words potential borrowers would use to find your webpage.
To experiment, go to Google and search for payday loans. As of today there are 43,400,000 (forty-three million +) websites that contain those 2 words. Put quotes around those 2 words ("payday loans") so only sites with those words together will be returned in the search results: 12,700,000 indicating that there's probably no way the average person with little SEO (Search Engine Optimization) knowledge could appear in the top 100 so don't expect website traffic from 'payday loans'.
Add words that will narrow the scope, like "payday loans in Alabama". Competition is reduced to 60,800 so the chances of ranking highly for that longer group of words is higher, but why would someone in another state want to rank for loans in AL? Because your loan-lending business is online and you may be able to do business there. "payday loans in Montgomery Alabama" - 64 results so it comes down to the target location and how much time and resources are available to create 'landing pages' that focus on specific areas. Still, as of today, 22 websites have 'payday loans' and that city in the titles of their websites.
Another factor is 'the sand box'. New sites are generally not allowed to rank at all for approximately six month (to keep low-quality spam sites from clogging up search returns). It's very likely that spending that amount of time developing a website will result in futility.
Assuming an online payday lender could achieve some traffic (website visitors) lets ask, "Just who would be looking for loans on the Internet?". The worldwide web may be the future but it has also brought the pond scum out from under their rocks trolling for opportunities to sit behind a keyboard and run a wide variety of fraudulent SOYA schemes (sit on your axx). Lending money face to face takes away the anonymity and miles, increasing the chances of getting loans repaid. Anyone pushing forward with the notion of lending money in the cloud should factor is a multiple for losses related to unpaid loans.
If a customer fails to repay the licensee may accept a payment plan, keeping track of payments received which are not to exceed the original amount plus interest. A borrower's wages cannot be encumbered by a wage assignment but law does not prevent the garnishment of wages granted by a court order.
Payday Loan FAQ
How can I get a payday loan?
Payday loans today are more readily available thanks to the Internet making them obtainable online so the first objective is finding a reliable lender, either locally or on the worldwide web.
The easiest way to find lenders in the cloud is by searching with your favorite search engine for 'payday loans online'. Search services have gravitating toward listing companies at the top of search results based upon your location. For expanded or different results try asking questions like 'Can you get payday loans online?' or 'What is the best payday loan online?'.
At this location the first listing of a lender is cashnetusa.com which suggests in its advertising that it is possible to receive funds 'the same business day' if the application is received early in the day and approval is granted. Likely that is the exception and the process of providing documentation for an online loan will take considerably longer as online moneylenders don't have the advantage of face-to-face transactions and the borrower's local presence (residence, employer) as security. checknogo.com isn't quite as aggressive in soliciting for your attention by saying "Upon approval, funds are deposited in your account as early as the next business day* with the asterisk leading to the qualifier, "Approval depends upon meeting legal, regulatory and underwriting requirements".
- In Alabama the maximum loan amount is $500 and the loan period can be from 10 to 31 days which can be extended once if requested at least 2 days prior to the due date. Requirements include verifiable income, an active checking account and a working phone number.
- California loan granters are governed by the California Financing Law and the Deferred Deposit Transaction Law. The loan max is $255 with the longest loan period being 31 days. The minimum number of days for an online loan is 10 days and an in-store loan is 5 days. Loan extensions are not allowed.
- Delaware is the pay-day loan wild card, allowing grants up to $5,000 pursuant to § 2203 of the Delaware Code. The daily rate is the contract interest rate divided by 365 and additional charges are allowed for rubber checques and late payment. Repayments may be made BCSS Intro-weekly for up to seventeen installments.
- Florida's loan limit is $500. Online and store minimum loan periods are 10 and 7 days respectively with 31 days as the limit. Florida has a '24-hour cooling-off period' between loans and extensions are not permissible.
- In Hawaii the max loan is $510 and extensions are not permissible. A viable alternative may be a small short-term loan from Hawaii's state federal credit union. Charges may be less and application requirements may be less stringent.
- The Idaho Credit Code of the Idaho Department of Finance regulates consumer credit for personal, family or household loans up to five thousand dollars. Payday lenders with a valid payday-lender license and who only grant payday loans are not required to secure a regulated lenders license.
- Illinois law enforces a 7-day 'cooling off period' after a forty-five day loan period. There's a 14-day wait for those who had an extended payment plan and had an outstanding transaction during the extended-payment-plan period.
- Indiana has a different approach permitting loans of the lesser of six hundred five dollars or twenty percent of gross monthly income. Loans are allowed up to thirty-five days and can be consecutive. Borrowers must wait seven days after a fifth consecutive loan transaction before requesting additional money.
- Kansas - The Kansas Consumer Credit Code of Office of the State Bank Commissioner of Kansas limits loans amounts to $500 and disallows loan extensions. Statute 16a-3-202. (UCCC) is a notice to consumers of a written agreement requiring or providing consumers' signatures evidencing a credit transaction not of open-ended credit. The agreement must be clear and the printed notice must be read by the signatory prior to sign in acknowledging he or she is entitled to a copy and can prepay at any time without penalty. Notices to consumers: a) Do not sign before reading b) You have a right to a copy of the agreement c) Prepayment of the loan is allowed without penalty.
- Maine is a bit more protective of its citizenry, limiting payday loans to just $250 while extending the repayment out to 40 days. The APR may be the lowest in the nation at 260.71% or twenty-five dollars on a $250 loan.
<>li>Michigan's Deferred Presentment Service Transactions Act requires that payment through lenders accepting ACH payments (automated clearing house bank payments from checking accounts) keep the loan open until a) 4 days after the effective ACH date or b) the borrower provides proof that the payment has cleared the bank account. The loan period shall be no more that 31 days and as little as fourteen days. The finance charge can be no more than 15% on the first one hundred dollars, declining in percentage with each $100 down to eleven percent. The ceiling for APR is 369%. As with most states the limit on interest charged to military personnel and their dependents is 36% APR. There is no current pending bill addressing legislative restrictions as a federal law proposed by the Consumer Financial Protection Bureau is anticipate in 2020.
- North Dakota allows loans up to five hundred dollars with as much as forty-five days to repay. A loan cannot be extended.
- Texas loans are originated by a 3rd-party usurer with restrictions. Some antiquated TX homestead laws may make it more difficult to obtain a payday loan.
Payday loans are tantamount to loan sharking and loan backers go to great lengths to warn of the excessive cost of such loans. For example, with an APR (annual percentage rate) of 390%, borrowing $100 and not repaying it until a year later would require $390 to pay off the $100 original loan amount.
Can you go to jail for not paying back a payday loan?
centraltexasbankruptcy.com: "Debtors cannot be jailed for failing to pay a debt. Our U.S. Constitution prohibits imprisonment for debt. Our bankruptcy laws are federal laws that enable debtors to file for bankruptcy protection when they are unable to repay their debts. Furthermore, debt collection is a civil law matter, not a criminal matter."
Ah but lying on a loan application for the purpose of securing money through a loan (to which this question may elude) is fraud, a felony with six months to five years in the pokey, depending upon how many times you've been around the crime block. Any misleading statement on a loan application could be construed as intent to commit fraud, so there you go - civil and criminal charges - the latter getting you cuffed and in orange.
Can I get a payday loan with a prepaid card?
Searching for a 'yes' or 'no' answer to this question brings up a lot of chatter on websites trying to beat a word count to rank highly for this 'search phrase'. The simple answer is that payday loans have nothing to do with a secured (prepaid) debit card. Payday loans are granted on the assurance that you have a job, will keep the job during the loan period and repay the loan by making your payable to the lender post-dated for the date upon which the payday loan is due. Now, can you get 'a loan' against your prepaid card? Only if you can find a lender who is to believe that once you walk out the door with cash in hand you're not going to run to the nearest ATM and zap the prepaid card for all the cash that was to secure the loan. Short answer: Not! And why would anyone want to put up a prepaid card for loan collateral when it's cheaper and much easier just to cancel the card and wait for a in the mail?
Can I get a payday loan with poor credit?
Surely! You're putting up your pay as collateral. If you fail to pay the payday lender has the legal right to secure a court order to force your employer to withhold a portion of your pay each pay period until the indebtedness and additional fees (late charges, attorney/court costs, etc) are satisfied. Generally a payday lender will verify your employment by calling your employer and digging deeper: How long employed? Is this person trustworthy? Show up on time? Work hard. Get along with coworkers? You might get the loan, despite poor credit, if the lender can be convinced that you are worth the risk. The loan period is usually short, 2 to 4 weeks, so the risk associated with time is limited.
What are some alternatives to payday loans?
There is such a thing as a signature loan is a personal loan offered by some lenders who trust the borrower so much that they are willing the lend money solely based upon the borrower's promise to pay. Such loans often require an established relationship with the lender because there is no equity or collateral appended to the loan arrangement. Essentially such loan is a 'good-faith loan' dependent solely upon the lender's assessment of the borrower's, character, willingness and ability to repay. This type of loan is also known as a 'character loan' or 'good-faith loan. It's basically a personal loan granted to those with established good reputations.
Can you be denied a payday loan?
Of course! No lender is obligated to part with his money on the risk that money lent will be lost in the event the loan is not repaid. The qualification for obtaining a payday loan is the security of a pay so it's quite easy to falsify a loan application, give phoney employer information (including a phone number of a friend perhaps working at the place of business of the alleged employer). Because there is considerable risk in granting loans secured by pay checks, lenders have the right to deny requests. Also because of the risk the amounts charged for these short-term loans is very high on a annualized-percentage basis, often into the hundreds of percentage points, like 500% in some cases.
Can Wages Be Garnished?
In order for a payday lender to gain legal right to your employment wages, the payday lender must file and win a law suit against you, be granted a court order (judgement) and get a garnishment order against you which will allow the lender to require your employer to hold back a portion of your wages until the debt is satisfied. The amount to be paid may include legal costs, attorney fees and added 'late fees' imposed by the lender.
If a law suit is field against you and you don't show up, the court will grant the judgement. Quitting your job may not circumvent the order if you have a bank account or credit-union account that can be tagged (if allowed by state law). The Bank or union could hold funds for the collector or lender. Laws (and exemptions) are different of course from state to state.
Federal law does prohibit absconding with your federal funds although a court appearance may be required. These sources on income are allegedly protected: Civil Service and Federal Retirement, Disability Benefits, Compensation for Injury, Death, or Detention of Employees of U.S. Contractors Outside the U.S., Federal Emergency Management Agency Federal Disaster Assistance, Foreign Service Retirement and Disability Benefits, Longshoremen’s and Harbor Workers’ Death and Disability Benefits, Merchant Seamen Wages, Military Annuities and Survivors’ Benefits, Railroad Retirement Benefits, Social Security Benefits, Student Assistance, Supplemental Security Income (SSI) Benefits, Veterans’ Benefits
Fed benefits could be seized for back income taxes, student loans, child support or alimony.
There are several actions that could be taken if legal action is threatened. Private attorneys will likely be expensive if not ineffective, adding to your indebtedness. A consumer-protection group or a legal-aid service might offer some useful advice.
Depending upon your location a written notice to you may be required if a garnishment order is issued and may inform you as to what to do if you believe your money shouldn't be locked up. In some areas there is no such heads up.
Perhaps the best thing to do is communicate with the payday lender, disclose your financial situation and ask for his/her cooperation in working something out.
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