Currently many states cross the United States have been enforcing new laws to protect borrows when they utilizes the services of payday advance companies. Many of these states have capped the interest rates and fee’s that these payday advance companies can request they have also regulated these companies by putting stricter demands on payday advance companies.

But what happens in the states where there are no laws to enforce any type of protection from the predator type lending style of payday advance companies? Absolutely nothing, since you will find that your state offers you no protection.

The 6 deadly states for borrowers are (in alphabetical order) Delaware, Idaho, Indiana, New Hampshire, South Dakota and Wisconsin.

In these states a payday advance company can charge any fees or any finance charges they wish to charge their borrower. This is absolutely no state control to these companies.

Currently Oregon which once sat on this list of deadly states for payday advances has currently adopted a new law that caps the interest rate on payday advances at 36 percent, but they will allow the company an origination fee of $10 dollars per $100 dollars that is borrowed but that will even be capped to not allow any more then $30 dollars per loan amount. Previously Oregon’s payday advance companies could reach interest rates of 520 percent. New Mexico also joined the ranks alone with Nevada when Oregon clamped down on payday advances.

Following Oregon would be Illinois. Once no laws regulated the standards of payday advance companies Illinois has capped these companies to $15.50 per $100 dollars borrowed for low income families.

Strides are being made by states South Dakota is making plans to review the way payday advance companies work and hopefully some day South Dakota will not be a deadly state when it comes to payday advance loans. Right now South Dakota only regulates how many loans can me made to each borrow. There law prevents companies form making multiple loans at the same time to any one person. Wisconsin state is also promising to put caps on payday advance loans. Only time will tell if any of these states who have made the promises or are on the deadly state list will take actions and protect borrowers and low income level families from the finance charges and fee’s that some payday advance companies charge.

For these states that do not protect borrowers payday advance companies can charge anywhere for there finance charges but the average seems to be 15 to 30 dollars per 100 dollars borrowed. For a 2 week payday advance on 1000 dollars you’re looking to pay back either 150 or 300 dollars for that simple 2 week loan of 1000 dollars. When you break down the math on these cash advance loans is no wonder low income families find themselves in more debt when thinking a payday advance will help their problems. It eventually buries them further into debt. States need to enforce and set forth laws that will protect these issues from happening and families falling victim to these types of loans.