Sonic Payday Loan's APR of 1354.67% - IS THIS LEGAL?

Sonic Payday is based in the country of Malta. Becasue of this the transaction is deemd to have taken place at their corporate offices in Malta. What does this mean? Your transaction is under the jurisdiction of and subject to the laws of Malta.
US laws have no bearing on your transaction.


Please see this previous post on thie subject:
http://forums.debtcc.com/forums/sonicpayday.html

The use of payday loans to ease temporary cash flow problems often leads to worsened financial condition. Additionally, short term lenders often charge exhorbanant interest rates. Loans executed at payday loan sites within the United States (read your disclosure very carefully to determine where your loan was executed, and the jurisdiction it falls under) are subject to the jurisdiction of the state in which the loan was executed. Some states place a limit on how high an interest rate can be assessed, and even how many times a loan can be renewed before it must be paid back. Some states even maintain a state wide database of payday loan customers, and will limit your ability to take out mulitple loans.

Taking a short term loan is a bad idea. However if you are in a real bind with no other alternative; you can protect yourself best by conducting business at a loan store in your home town. This way, you are protected by all applicable state and federal laws.