Hawaii payday loan laws overview

Hawaii Payday Loans Law

Hawaii payday loans industry is growing strong as this is the preferred type of short-term loan for most Hawaiian borrowers. So if you are a resident of Hawaii and you are looking for a payday loan, here is what you need to know.

Throughout most of the 19th century, the state of Hawaii was a native kingdom. In the year 1893, Queen Liliuokalani was ousted from position and the Republic of Hawaii was established a year after that with Sanford B. Dole as its first president. In 1900, Hawaii became a United States territory.

Hawaii produces products like coffee beans, macadamia nuts and bananas. However, what brings the most income for Hawaii is its tourism. Among the most visited tourist destinations in Hawaii are Volcanoes National Park of Hawaii and Hawaii National Historical Park.

Hawaii is the 8th smallest state in the United States and it is the 11th least populated with a population of no more than 1,431,603 residents.

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Hawaii payday loan laws regulations

Hawaii payday loans laws regulations
Hawaii payday loans laws regulations

In Hawaii the payday loan lending is legal and payday loan lenders operate under the 26 Hawaii Rev. Stat. Ann. ยง 480F-1 et seq law, which regulates all payday loan lending issues. According to Hawaii payday loan laws, lending companies are not allowed to grant loans to people who already have an outstanding loan.

This means that borrowers cannot repay their current loan by taking a new one. It is important to note that in order for any payday loan lending company to be able to legally conduct its loan lending business in Hawaii, it has to be in the form of check cashing transactions. Otherwise, it is considered illegal.

Charges and fees for a payday loan

  • According to Hawaii payday loans laws, lending companies can charge a maximum of 15% rate on the loans they are giving out.
  • A $100 14-day loan finance charge cannot surpass $17.65.
  • The annual percentage rate for a 14-day $100 payday loan cannot be more than 459%
  • The maximum loan amount a person can take out is $600 for a period not longer than 32 days.
  • There are no rollovers allowed, so all loans should be repaid on time.

Collection restrictions

  • Criminal procedures

Criminal procedures are forbidden (unless when a check is returned because of a closed account or in a stop-payment state)

  • Collection fees

Hawaii Payday loan lenders are allowed to charge a fee of $20.

Hawaii payday loans benefits

Payday loans benefits in Hawaii
Payday loans benefits in Hawaii

Payday loans have a reputation of being risky. However, that risk is usually insignificant compared to the benefits a payday loan can offer.

  • Extremely fast service
  • The option to choose from online and physical store application
  • Bad credit rating is not a problem
  • The application process is quick and simple


Payday loans application and eligibility

Even though payday loan companies do not require a lot of documents when you apply for a payday loan, there are still some criteria you need to meet in order to be eligible for a payday loan:

  • To be at least 18 years old
  • To be a citizen of America or a permanent resident of the United States
  • To have steady monthly income

Also needed for a successful application is the following information:

  • Your social security number, name, and date of birth
  • Phone number, home and email address
  • Details regarding your employment and income

Cities in Hawaii where you can find payday loan lenders:

  • Aiea
  • Hickam Afb
  • Hilo
  • Honolulu
  • Kailua
  • Kailua Kona
  • Kaneohe
  • Kapaa
  • Kihei
  • Lahaina
  • Lihue
  • Pearl City
  • Wahiawa
  • Wailuku
  • Waipahu

Hawaiian payday loan lenders

Most Hawaii payday loan lending companies have both on-ground and online stores. It is up to you to choose which option works best for you. If you decide to apply for a payday loan online, you may get your money a little slower than a physical store application. But it still should not take more than one business day.