Idaho, also known as the Gem State, is the 14th
largest US state. As the nickname suggests, Idaho boasts of its scenic beauty and the abundance of gemstones and various natural resources such as silver, lead, zinc, topaz, opal, jasper, jade etc.
If we talk about the agricultural sector, Idaho stands among the top ten states of the country with 27 variant crops and livestock. Potatoes and Huckleberries(State fruit of Idaho) are two of the main food items in Idaho. Others include peas, plums , trout, mint, barley, onions, mint, and dairy products.
Idaho has quite a diverse climate. In December, the average temperature is around 24 degrees whereas in July, it is 91 degrees. However, this does not stop the people who live here from having adventures of their own. Residents of Idaho are said to enjoy various outdoor recreational activities as well. Be it hiking, camping or fishing, the people of Idaho know how to make the most of it. Of course, it also helps that Mother Nature has been kind to Idaho and has blessed the state with mesmerizing landscape and wilderness.
One of the most famous attractions here is the Shoshone Falls. This waterfall is located on the Snake River in southern Idaho and is 212 feet high. That is, about 45 feet higher than the Niagara Falls. For people who enjoy rafting, Idaho offers the Snake River as well as the Salmon River, both of which provide amazing whitewater for adventurous rafting experience.
Thus, it is safe to say that for people who dream of having a home in the lap of Mother Nature, moving to Idaho seems to be a great idea. However, one must not forget that buying a home, or moving to a new place is a huge financial move. Even though Boise, Idaho was included in the list of best state capitals to live in made by SmartAsset in 2017, it is to be noted that this life changing decision can really affect your budget. Yet, there are people who are willing to take the risk in order to turn their dream into reality and end up struggling to make ends meet. This is where payday loans come into play.
Payday Loans in Idaho
It is known that one of the lowest per capital personal incomes in the US is of Idaho, and still, the average expenditure on food, housing and other necessities is far more in Idaho than many other states. This is the reason for the rise in demand of payday loans in the state. Payday loans are the loans with high interest, but less time to return.
People who are in desperate need of money, they fall in this deep vicious cycle of payday loans, end up in huge debt and financially become more unstable than they were before they borrowed the money.
Payday loans/lending, in Idaho has become a huge business. It was seen that in 2014, payday loans worth $170 million were taken out by consumers in the state. The same year, certain legislative efforts were made for the regulation of short term loans. These efforts included:
- The Idaho Credit Code
- The Idaho Residential Mortgage Practices Act
- The Idaho Collections Agency Act
This caused decrease in the number of payday lenders by 34%.
It was seen that in July 2003, a set of laws which took care of payday loans in the state were adopted by the Idaho legislature. Before 2003, payday lenders were allowed to function in Idaho as lawful lender licensees. This was because of the Idaho Credit Code.
payday loans idaho
Then, on July 1, 2014, consumer protection changes to Idaho’s Payday Loan
Act were made by the Idaho Department of Finance. New consumer protections for payday borrowers were included in Idaho Payday Loan Act.
Following are the protections provided to the consumers:
- The payday loan has to be well within 25% of the montly salary of the person borrowing the money.
- The maximum amount of the payday loan cannot exceed 1000$.
- There will be only three rollovers (renewals) permitted.
- If, by any chance, it is difficult for the borrower to return the money, they can request for extended payment plans. However, there must be sufficient time for this and not at the last moment.
- For the consumer protection, bold and capitalized disclosures need to be displayed.
Some examples of these disclosures are provided by The Idaho Department of Finance. These samples may include:
- It would be better to get payday loans for the goals that are short-termed rather than the ones that are long-termed.
- You can officially cancel the payday loan without paying any extra money if you return the amount the very next day you took the loan.
- Before going for high-cost payday loans, a person should look for other loans which are comparably not so high-cost.
- You can convert a payday loan into an extended payment plan without any extra charges, just once within 12 months.
- In case the lender violates the law, the borrower can make a written complaint to the Idaho Department of Finance.
These additions really helped in protecting the consumers’ rights. However, in Idaho, the lenders still can charge as much interest as they wish to as long as the person borrowing the money agrees to it. Even though the payday loans could not be fully eradicated, the above provisions certainly make situations a little more hopeful for the borrower.