How DO PayDay lenders know if customers have outstanding payday loans?
The State maintains an electronic database that payday lenders must check to see if a customer has any outstanding transactions. To process a payday loan request, the payday lender will ask for the customer’s name, address, Social Security number, driver’s license or other state-issued I.D. number, amount of the loan sought, the number on the check that will be used to cover the payday loan, and the date of the requested payday loan. The payday lender must then check the State database to make sure a customer does not have more than one outstanding payday loan. If the customer has more than one outstanding payday loan, the payday lender cannot issue another one. If the electronic database is ever down, each customer will be required to sign a statement indicating that he/she does not have an outstanding payday loan with the current payday lender and also indicating that the customer does not have more than one other payday loan with another payday lender in the State. What are your rig
