Background
National Payday was an online payday loan provider offering short-term, small-dollar loans to consumers seeking quick access to emergency funds. The company operated primarily through its website, nationalpayday.com, and was known for its rapid loan approval process and convenient online application system.
History
National Payday began operations in the early 2000s and became one of the more recognizable names in the online payday lending industry. The company served borrowers across the United States for several years, focusing on providing fast cash advances to individuals who may not have qualified for traditional credit. Over time, National Payday faced increasing regulatory scrutiny and competition, leading to changes in its business practices and, eventually, its closure.
Types of Loans and Fees Charged
Loan Types: National Payday specialized in payday loans, also known as cash advances.
Loan Amounts: Typical loan amounts ranged from $100 to $1,000, depending on the applicant’s income and state regulations.
Repayment Terms: Loans were generally due on the borrower’s next payday, usually within two to four weeks.
Interest Rates (APR): Payday loans from National Payday carried high interest rates, with finance charges commonly ranging from $10 to $30 per $100 borrowed, resulting in APRs that could exceed 400%.
Fees: In addition to finance charges, borrowers could incur late payment fees, returned payment fees, and, in some cases, renewal or rollover fees if they were unable to repay on time.
Locations
National Payday operated exclusively online, serving customers in states where payday lending was legal. The company did not maintain physical storefronts.
States Where Loans Were Offered and Not Offered
Available States: Loans were offered in states that permitted payday lending under local laws and regulations. The specific list of eligible states could change over time as regulations evolved.
Unavailable States: National Payday did not offer loans in states with strict payday lending regulations or bans, such as New York, Connecticut, Maryland, and others.
Consumer Sentiment and Reviews
Consumer sentiment toward National Payday was mixed. Some customers appreciated the fast and easy access to emergency funds, while others criticized the high costs, aggressive collection practices, and lack of transparency. There were also reports of scams and fraudulent activity involving parties using the National Payday name to collect money from consumers under false pretenses. Regulatory actions and consumer complaints contributed to the company’s eventual closure.
Current Status
National Payday is no longer operating. The company’s website is inactive, and all lending activities have ceased. Consumers seeking payday loans should look for reputable, licensed lenders and carefully review all terms and conditions before borrowing.
