SB 834 is a bill formulated by national consumer groups, Consumer Federation of American (CFA) and the National Consumer Law Center. It is important for the citizens of US to know the merits of the bill. According to SB 834, the fee imposed by payday loans is reduced. The fee is similar to the Financial Code for small loans provided by the licensed finance lenders. $5 fee is charged with the maximum APR of 36%. Consequently for a $100 for two weeks, $6.50 is supposed to be charged. But according to the new law, $17.50 fee is minted from the borrowers. As a result for $200 for two weeks $35 is charged now that otherwise use to cost mere $8. So the difference in the fee charged now and before varies significantly.

According to SB 834, the instant cash loan online can be extended. If the payday lender wishes to extend the loan he may but cannot charge extra fee from the borrower. The lenders require providing a notice to the borrowers that they cannot lay any sort of mental stress in case they are unable to pay back the loan within the stipulated time period. But the rules are not just meant for the payday loan lenders. Even borrowers must realize the fact that if they are getting money as and when required, they need to move ahead according to appropriate norms. Civil case can be filed against the borrowers if they violate any of the laws. Moreover a penalty of $2,000 is charged.

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