If a payday cash advance consumer is unable to meet the loan repayment requirements, almost all lenders provide grace periods. Lenders allow a certain period to give the consumer an opportunity to make their payments without being assessed or charged for late fees. Grace periods can range from a number of minutes to a number of days or longer, depending on the lender. Payday cash advance consumers should know what the grace period is for their loan and why it is important to stay within that period when repaying their loans.
Consumers with loan repayments should be fully aware of the number of days allowed in the grace period. The grace period begins when the notice for loan repayment is dated, not on the date that is contained on the envelope. Usually, the date is indicated on the statement or bill and this is the date used to calculate the grace period.
There are slight variations in the number of days that a lender provides for its grace period to a defaulting consumer. This can vary from one company or lender to another. Consumers should not assume that all lenders follow the same number of grace periods. Therefore, consumers must read their loan terms and all statements demanding loan repayments to know what their grace period is.
Paying the balance before the end of the grace period will usually not incur additional finance charges. This is the best way for consumers to save a lot of money especially when dealing with credit card debts. However, there are instances where you will still need to pay some finance charges for a payday cash advance no matter how quickly you pay it off.
Payday cash advance lenders often allow a grace period of 10 to 15 days before charging a borrower for late fees. But don’t assume that the grace period for your loan is automatically acceptable whenever you are unable to comply with your loan repayment. Instead, read all information on your loan agreement before signing up.
Basically, the Truth in Lending Act requires that all terms of your payday cash advance must be disclosed to you before signing, in a “Disclosure Statement”, including details about grace periods. Among other important details that must be disclosed are the interest rate on the payday cash advance, loan processing charges, and late payment penalties.
Beware of the misconception that when your statement for the grace period is delivered by mail, an extension applies. Remember, your loan documents have specified your monthly payment due dates and the grace period, so you have to remit your loan repayment on time. Arguing about the late delivery of your statement will not get you an extension on your grace period. Keep in mind that a grace period does not stop the accumulation of interest charges unless the loan is repaid in full.
Therefore, abiding by the given grace period for repayment of your payday cash advance is important. In case you are not able to repay within the defined grace period, communicate with your lender as soon as possible. Lenders, when assured of payment, may reconsider the length of time allowed for a grace period but may only grant a maximum of 2 late payments per loan. So, pay your loan on time if at all possible.