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Can payday lenders charge extra for cash cards?

April 26, 2017cards cash charge extra lenders Payday

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Can payday lenders charge extra for cash cards?

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A. Many lenders issue cash cards instead of cash for convenience and safety. A payday lender may charge extra for issuing a cash card, but total charges for the loan must include the cost of the cash card. The total of all charges must not be higher than 23% of the principal of the loan. The payday lender must tell borrowers if they will be charged when they use the card, such as at an ATM or retailer. If there is $25 or less remaining on a cash card, the borrower can ask the payday lender to pay it out in cash.