Vermont Cash Advance
In the state of Vermont, cash advance lending is not legal. Vermont is a state that is currently taking a proactive approach to get control over their borders against cash advance lenders. Also, Vermont is trying to bring about stronger legislation against giving out Vermont cash advances, which will be more effective than the legislation that is in place now.
Vermont Laws Related To Cash Advance Lending
The states in the region are taking action to keep illegal cash advances from the citizens of these states. The current laws in Vermont, in terms of cash advances, have various weaknesses that actually allow cash advances to happen no matter what the current legislation is in the state regarding the matter. Vermont is also trying to prevent transactions over the Internet between cash advance companies and the citizens of Vermont. The situation with banks not in the state of Vermont that offer the state's citizens cash advances is a problem that Vermont is trying to do away with in their struggle for effective measures against its cash advance lender problems.
The legal attitude of Vermont towards giving out cash advances has brought about a situation that is not conducive to the citizens in Vermont in terms of cash advances. It is not possible to find a cash advance company that is legal in Vermont, as Vermont cash advances are not legal in the state.
Lenders that offer Vermont cash advances are not able to operate legally in the state. The reason for this is that Vermont's usury laws prohibit charging interest rates in the triple digits. Consumer small loans in Vermont currently have an interest rate of 24%.
In the early part of the 20th century, loan sharking led to the state of Vermont passing the Small Loan Act. The Small Loan Act was the 1st of its kind in America that sets regulations that governs lending in Vermont. Other states in America, such as New Hampshire to name just one, followed the example set by Vermont as they passed laws for lending activities. The thought behind small loans in the state of Vermont was to make it so individuals had the possibility to obtain small loans from their local banks. Loan sharks were driven out of business in the state of Vermont, as people could obtain loans at interest rates that were lower.
Lenders that give cash advances have discovered ways of skirting laws that prohibit Vermont cash advances from being given out. These lenders have purchased charters that give them the right to assume interest rates, as well as loan terms, from other states in America. Purchasing a charter begins with first establishing a list of banks in Vermont that offer charters. These banks operate in Vermont; however, the bank's headquarters are based in another state. The cash advance company then established their business in Vermont and purchases a charter from a bank with higher interest rates where the main office of the bank is actually located. This is a legal action in Vermont, as under state law, lenders that give out cash advances can purchase a charter from a bank and then charge rates from out of the state. By doing this, it establishes a loophole in the Small Loan Act in Vermont, which prohibits cash advance lenders the ability to operate in the state of Vermont.
Vermont Unemployment Statistics
The unemployment rate in January 2006 was 4.1%, which meant that there were 14,807 people that were unemployed in the state at that time. One year earlier in January of 2005, the unemployment rate was 4.4%. Vermont's unemployment rate has not been less than 2.2% in the last decade.
Vermont Cash Advance - Cities