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Connecticut does not have a law prohibiting payday lenders. Federal law limits to 36% the APR payday lenders can charge military households on payday, tax refund anticipation, and auto title loans. Lenders can't accept checks or authorization to withdraw cash from a military family’s checking account as collateral for a loan. Yes, but the payday lender will probably take collection action immediately. When you take out a payday loan, you either write the lender a personal check or give the lender permission to take money directly from your checking account. If you close the checking account to maintain the lender from taking what you owe, the lender could possibly keep attempting to cash the verify or withdraw dollars from the account anyway.
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