According to a release on PRNewswire, it  seems that payday lending is increasing online. The article refers to this phenomena as “Unintended Consequences” caused by over-regulating the local market.

Every state in the nation has its own laws and regulations on payday loans. Some are more restrict than others and in some cases, they are even illegal.

However the demand for payday loans and other short term loans haven’t gone away as many payday loan consumers tend to look elsewhere if payday loans are too hard to obtain in their own states. And one of those places is the internet where they can take a payday loan online.

Majority of online payday lenders often respect comply with each state law adjusting their fees and loan amounts according to that state law however there are some lenders, however it is hard to be 100% accurate since consumers can be dishonest on their application and since payday lenders usually don’t check credit history, there is a possibility they may end up  funding the loan applications outside state rules.

If you like to find out more about your state laws on payday loans and payday lenders, we wrote a 2 part article back in May about the payday lending laws and regulations for each state; Payday Loan States part 1, part 2.

Important Disclaimer: Please be advised that the article was written back in May and there have been a lot changes in the state laws regarding the payday industry. Also our site is an informational and educational website and not designed for legal advises. Please seek legal counsel if you want to find most accurate information regarding payday lending laws and regulations in your state.