Payday lenders are strictly regulated by the state they do business in and some of the rules they have to follow will vary by the state. However, the general consumer protection laws the payday loan companies have to follow are pretty much the same in every state. Payday loan companies are not allowed to loan out more than one payday loan to a customer at a time. Some states may allow two however there is a limit on how many payday loans a customer can have. Once the customer has paid off an existing payday loan they can apply for another payday loan if they choose.

Payday loan customers are also allowed a certain amount of time to cancel the payday loan. The normal cancellation period is about 2 days. If within these 2 days the customer decides that they no longer want the payday loan they can opt out of the payday loan contract and return the loan amount minus the interest fees. Payday loan companies must also make it clear the terms of the contract. This means the payday loan company must deliver a contract to the customer with terms the customer can understand and must also explain the contract in full to the customer. The customer must then agree to the terms of the contract and sign it before the funds can be dispersed. Along with explaining the terms of the contract the payday loan company must be sure the customer understands the amount of the loan they are receiving, the amount they will owe and when that amount is due.

Many payday lenders will have more regulations to follow or less to follow depending on the state they are doing business in. Therefore, if you are going to be getting a payday loan, you should be sure to get an update of any special rules you or the payday loan has to follow to make sure that you are being treated fairly and that the payday lender is a reputable company and doing business the correct way If you are unsure of the payday loan consumer protections in your state you can always ask for clarification from the payday loan company you are getting your payday loan from. Many are more than willing to give you the laws in that state as well as show you that they are adhering to them.