Walk It Through: The Short Term Loan

A licensed lender for loans of five hundred dollars or less, a limit on renewals, and a claim for money the state is holding.

Short on rent, a worker takes out a small unsecured loan from a storefront lender.

Two things a person in this spot might do. Picking one shows what the law says about it.

One borrower and one unclaimed account. Licensing details, the lender's disclosures, a returned check, and the treasurer's decision on a claim are not worked through here.

A practice walkthrough, not a prediction of how any real one will go. Legal information, not legal advice.

Words this turns on

Terms with a legal meaning that is narrower than the everyday one. Each links to the definition and the authority behind it.

Loan renewalRenewing an unsecured loan of five hundred dollars or less on the borrower's written request and payment of the interest and fees then due, with the principal reduced each time by not less than five percent of the original amount.