Hawaii Payday Loan Laws and Regulations

Hawaii Payday Loan Laws and Regulations

Are Payday Loans Legal in Hawaii?

Short-term Payday Loans are legal in the state of  and are mostly regulated through 26 Hawaii Rev. Stat. Ann. § 480F-1 et seq.

The Payday Lending legislation covers all the parts of the process concerning:

  • Payday Loan amounts
  • Payday Loan repayment terms
  • Payday Loan online direct lenders
  • Payday Loan stores near you
  • Payday Loan interest rates and other fees
  • Payday Loan collecting practices
  • Payday Loan default penalties
  • The number of outstanding Payday Loans as well as a cooling-off period in-between etc.

The main Payday Loan requirements in Hawaii are:

  • US residence
  • Minimum regular income of $1,000 per month
  • Valid checking or savings account with direct deposit
  • Phone number and e-mail address 

Any eligible Hawaii resident can apply for $600 Payday Loan amount. It should be repaid within 32 day(s). Earlier payments don’t contemplate any additional penalty fees. The interest rates are maximum 459.00%, but on average direct lenders charge 400% APR. For other details read further to find out how many Payday Loans you can borrow, whether rollovers or extensions are allowed, etc.

Hawaii Payday Loan Terms and Amounts 

Hawaii residents who are eligible for a Payday Loan can get up to $600 cash advance per contract. The repayment term is capped at 32 days.

Summary of 480F, Hawaii Revised Statutes, Check Cashing.pdf

However, there are no limits on the purpose of loan usage. Any urgent expenses, unforeseen bills, car repairs, home repairs, etc. may seem a sound reason to apply for a Payday Loan in Hawaii.

If a Payday cash advance is not enough, there are always other options to receive the necessary funds in Hawaii: unsecured Installment Loans, bad credit Personal Loans, Title Loans, Check Cashing, Pawn Shops, etc.

Hawaii Payday Loans online laws 

Payday loans from both storefront and online lenders are legal in the state of Hawaii. But the companies should operate according to the The Hawaii Department of Commerce and Consumer Affairs, United States Post Office Custom House and Court House, 335 Merchant Street, Honolulu, Hawaii 96813, Telephone: (808) 587-3222 regulations.

Though there’re some limits on how online payday loan direct lenders should run businesses, still there are some. Reputable online lenders operating in accordance with all relevant state and federal laws can be applied to and compared on our platform using a simple online application form.

You state the necessary amount, fill in your personal information and get suitable offers from legit direct lenders. It takes only a few minutes and doesn’t affect your credit score. 

Hawaii Payday Loans interest rates, fees, and other finance charges 

The main part of payday loan payment is mostly made up of the interest rate, or APR. The maximum APR that may be charged for short-term cash advances in Hawaii is 459.00%.

Besides, the total cost of a Payday Loan includes some additional fees. Hawaii lending rules allow charging $20 NSF fee.

The law obligates Iowa Payday Loan lenders to provide you with a written disclosure of all the rates and fees in understandable language. You should read them carefully and if you agree acknowledge the notification by signing the contract.

Hawaii Payday Loans direct lenders’ regulations 

According to Hawaii payday loan laws, all direct lenders are obliged to register their companies which will allow issuing payday loans contract. It concerns both Online Payday Loan direct lenders and lenders in a store near you.

Now, payday lenders are operating online to make it faster, easier, and more convenient for borrowers to get the necessary funds. However, it is often illegal for online payday lenders to make loans to Hawaii consumers. Payday lenders, or direct deposit lenders, must be licensed by the state in order to run a lending business in Hawaii, and to be licensed, the lender is required to have a physical location in the state. Hawaii has put these laws in place to prevent consumers from getting scammed on the web, and you should apply for online payday lenders’ loans with caution.

But Hawaii Payday Loan lenders are prohibited to threaten you for late payments or loan defaults and conduct any criminal actions against you.

Hawaii Payday Loans consumer information 

Besides amounts, rates and fees, consumers must be also well aware of other details of Payday Loans in Hawaii. They include the availability and number of rollovers, extensions and repayment plan, a cooling-off period, any default penalties or additional fees, etc. Check out the table below to find the most essential information:

Rollovers or extensions None
Cooling-off period
NSF fee $20 NSF fee
Criminal actions Prohibited

Look for more detailed information on the official Iowa state regulator website – The Hawaii Department of Commerce and Consumer Affairs, United States Post Office Custom House and Court House, 335 Merchant Street, Honolulu, Hawaii 96813, Telephone: (808) 587-3222.

Legitimate Payday Loans Online with NO credit check in Hawaii 

Looking for a legal Payday Loan with No credit check in Hawaii? You must understand the meaning of this phrase correctly at first. No credit check implies that a lender will not inquire about your credit history information from or send your borrowing data to any of the three major credit bureaus Equifax, Experian, and TransUnion.

If you don’t want to damage your credit history, Hawaii law allows you to apply for a Payday Loan with No credit check. But you should understand that a lender needs to check your creditworthiness at least in some way. He can perform a soft credit check when a lender pre-approves you for a loan and this inquiry will not appear on your credit report. Or there’re other ways to prove you can afford the cash advance. Payday Loan lenders use the tracking system to verify your debts, check your income, etc. And generally, they charge higher interest to lessen the risks.

Hawaii Payday loans online with no credit check are one of the easiest options for getting quick cash to cope with emergency financial requirements, especially for people with poor credit.

Does Hawaii law allow Payday Loans for bad credit borrowers?

The average credit score in Hawaii is 683, placing it in the good range. But it doesn’t mean that those who have worse credit can’t apply for a Payday Loan in Hawaii. 

  • First of all, there’re a lot of legit direct lenders in Hawaii providing Payday cash advances to borrowers with both good and bad credit scores.
  • Secondly, you can always find a cosigner to increase your chances of being approved for a bad credit Online Payday Loan.
  • Find out how to improve your credit score and do your best to do it fast. 
  • Or consider taking out a bad credit Installment Loan, or bad credit Personal Loan.

Legit Payday Loans in Hawaii collection practices 

If you can’t repay the loan amount plus interest on a due date it means you default the loan. When Hawaii direct lender isn’t able to cash your check after the repayment term is over he may charge you an NSF fee. NSF fee means there are no sufficient funds on your account. The amount charged is determined by the lender and stated in the agreement and may also be limited by the state’s Payday Loan law. In Hawaii it’s $20 NSF fee.

What concerns collection practices, first of all, you may stay assured that any criminal actions are forbidden in Hawaii. 

If you have unpaid debt in Hawaii, creditors may turn your account over to a debt collection agency. Hawaii’s Collection Agencies Act requires agencies collecting debt from anybody in Hawaii to register with the state Department of Commerce and Consumer Affairs.

Once your debt has been sold to a registered debt collection agency, there are a number of restrictions laid out by the federal Fair Debt Collection Practices Act (FDCPA) about how a collector can contact you and what they can discuss when they do. They may call you or send you letters, emails or texts — but they can’t do so at an “inconvenient time or place.” If you’re getting messages early in the morning or late at night, that’s illegal — debt collection agencies must contact you between 8 a.m. and 9 p.m. They also must stop contacting you at your workplace if you ask them not to do so.

The FDCPA also details what a collection agency must tell you about your debt. Within five days of the first contact, you must receive a written validation notice that explains how much you owe and the name of the creditor. This notice will also outline how to move forward if you don’t believe the debt is yours.

Debt collectors cannot harass you, misrepresent how much you owe, threaten you, curse at you or make false claims. Basically, if you think a debt collector is bothersome, their practices might be illegal under the FDCPA.

The debt collector also can’t discuss your debt with just anyone — that means they can’t call friends or relatives except to find your address, home number and work contact information. Even then, they are usually only allowed to contact your family members once. Besides that, collectors can only discuss your debt with you, your spouse or your attorney.

If you think that your payday lender violates the Hawaii Payday Loans law, you may file a written complaint with The Hawaii Department of Commerce and Consumer Affairs, United States Post Office Custom House and Court House, 335 Merchant Street, Honolulu, Hawaii 96813, Telephone: (808) 587-3222. The supervisor from that office interviews witnesses, reviews the payday lender’s business records and documentation, and determines whether to pursue civil or criminal charges.

Hawaii Payday Loans’ latest changes 

Since October 2017, the Hawaiian state government has been discussing a bill that would limit the APR by 36%. Such regulation has been put in place by many other states and has been aimed at reducing consumer debt. High-interest rates and short terms of Payday Loans make it hard for borrowers to pay their loans back on time. This bill, SB 286, has failed to pass in previous years. Keep an eye out for further development.

Hawaii Payday Loans’ historical background 

1999 Payday lending was firstly introduced in the state.
2001 Act 20, Hawaii Reversed Statute, Chapter 480F – the amendment that removed sunset date from the Act.
2003 Payday Loan term was limited to 32 days, while the amount was increased to $600.
2006 Payday Loans for the molitary were capped at 36% interest.
2016 New requirements were introduced which required the lenders provide only one consecutive loan to the borrower and offer a repayment plan.
June 22, 2016 A Payday Loan rule was introduced but hasn’t come to forse yet.
2017 An attempt to limit Payday Loans was made but unsuccessfully.

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