Agreement

When reading the agreement the borrower should pay close attention to the following things:

• Amount Financed:
  This is the amount borrowed not including any fees, in other words, this the amount of cash the borrower will receive upon signing the agreement.
  
  
• Finance Charge:
  This is the total amount of interest the borrower will pay for the advance.
  
  
• Annual Percentage Rate (APR):
  This is the cost of credit to the borrower as a yearly rate. Since these loans are intended to be small short-term transactions, the APR is often quite high. In some states like Wisconsin, there are no laws limiting the rate of interest a lender can charge.
  
  
• Total Payment Due Lender:
  This is the total amount the borrower will have paid once all payments including interest and all applicable fees are applied.
  
  When considering obtaining a payday loan, a person should take note of the following; if the borrower is married and their spouse does not sign the loan agreement, the lender is required to give the spouse a written notice that the borrower has obtained the loan. If the borrower pays the loan in full prior to its due date, he or she is entitled to a partial refund of the finance charge. Also, if the borrower defaults on repaying the loan, the lender may list the past due account with the credit bureau which could affect the borrowers ability to get credit in the future.
  
  Upon signing the loan agreement, the borrower is taking on a great responsibility. If the borrower cannot or does not repay the loan, the lender can seek a money judgment against the borrower for the amount financed plus court costs. In addition, the borrower may be ordered to pay any late charges, interest, and insufficient funds fees. Once a money judgment is obtained, if the borrower cannot or does not pay the amount ordered, the lender may attempt to garnish his or her wages until the balance is paid in full.