Payday Loan Guide

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History of Payday Lending
2008-01-17 13:14:00
Payday lending was started as a means of providing short-term financial assistance to individuals who were in dire need of financial help. They were designed to cater to military families and low-income families who live paycheck to paycheck. With the number of immigrants growing, and thus the growth of the low income population, more and more payday loan centers have come up to cater to them. Where is payday loans industry headed? Well, as long as people spend money they don?t have and continue to jeopardize their credit, this business is headed nowhere but up.
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Controversy on payday loans
2008-01-16 13:13:00
It is common fact that payday loans come with uncharacteristically high finance charges. This could be due to the fact that in some states there is no regulation and some of these lenders decide how much they are going to charge the consumer. In turn, this takes us back to the cycle of debt where an individual is forced to borrow over and over again just to cover the high finance and interest charges. Some states have also imposed laws limiting the number of payday loans an individual can take out in a given amount of time. This is good for those irresponsible borrowers, but bad for those people who honestly need to take out more than one loan to cover say an unforeseen medical emergency. Payday lending is Illegal in some places because of APR rates higher than the law allows. An example of this is Canada where any rate of interest charged above 60% per annum is considered criminal.
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PAYDAY LOANS AS A BUSINESS
2008-01-15 13:12:00
Even though the payday loan business is still considered a new form of giving out loans it has however grown in comparison to other loans. It has spread throughout the whole world and has made a mark in the financial world. There are however risk involved as there are in the other forms of loans and credit giving. The kind of risks that can be found among payday loans come more from borrowers who usually have bad credit history?s or low credit limits. Low credit limits usually come up due to bounced cheques. Most of the borrowers of payday loans might also give false information concerning where they work or their names thus causing the lender a headache when it comes following up for the money borrowed, some even move to other places. This does not mean the borrowers themselves are not in for problems as well. Some lenders might have hidden fees coming with the payday loan which often leads to the borrower having to borrow another payday loan to pay off the first which then leads t...
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ARE PAYDAY LOANS THE NEW LOAN SHARKS
2008-01-14 12:53:00
Many payday critics claim that payday loans are just legal loan sharks who are out to get you and only go after the poor and the young. Payday lenders are said to put up shop in places where people are not doing so well, especially in depressed and low-income neighborhoods where it is necessary for the people to take payday loans, which is not the best thing for them. Payday loans should be used to help those who can help themselves and not to take advantage of those who cannot. Lenders are often called loan sharks by critics because some of them hide the fact that when you are paying back the loan there is a fee that comes with it as well as an interest fee which multiplies when you stay to long with the loan. Some lenders might give you all the information but when it comes to paying back the payday loan might attach some extra fees to the loan make it harder for you to pay it back then tell you to take another payday loan to pay off the first loan. This is wrong because the more ...
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PEWAUKEE CREDIT UNION OFFERS ALTERNATIVE TO PAYDAY LOANS.
2007-12-14 08:16:00
Pewaukee credit unions have come up as alternatives to payday lenders; www.cityofpewaukee.us/ they are offering small short-term loans at very low interest rates to their members. They aim to counter the view advanced by payday lenders that borrowers cannot access credit from traditional lenders forcing them to turn to payday lenders. This is far from the truth because payday lenders end up damaging the borrower?s credit rating even further thus making it impossible for them to get any other form of credit. Credit unions on the other hand end up building the borrowers credit, they offer classes in financial management as well as boosting the borrower?s credit and instilling the discipline required to save for the future. According to figures from the Wisconsin department of Financial Institutions there were more than 550 payday lenders in the state and the advanced more than 1.5 million loans total $700 million. Majority of the people who took up the loans earned less than $25,000 ...
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PAYDAY LOANS; WAY OUT OR DEBT TRAP
2007-12-13 08:05:00
Proponents of payday loans are quick to argue that payday loans are a useful tool for low-income families to tackle unforeseen emergencies. Consumer rights groups on the other hand argue that payday loans are predatory in nature and leave the users in debt traps. The bone of contention is the high interest charged in the loans, in states without payday loans laws, a lender can charge as high as $40 for every hundred borrowed and if the loan is unpaid the interest rate can go as high as 600% per year. The lenders believe that they are justified to charge as much because they are in a high-risk market, while consumer rights groups see it as an excuse to exploit the poor. Payday loans users see them as a way out of their difficulties, most are aware of the effects of the high interest but they still use them because they have no other alternative; many of them are in the low income bracket and have little or no credit making it difficult for them to obtain loans from banks.
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PAYDAY LENDERS MOVING FROM PAYCHECKS TO CAR TITLES
2007-12-12 08:03:00
As more and more states enact laws to control or ban payday loans, lenders are increasingly being forced to change they way they operate their business. Many lenders are now shifting their focus from loans secured by a paycheck to those covered by car titles. The mode of obtaining a loan is pretty much the same the difference being that the borrower has to fully own the vehicle. The loans attract similar rates of interest and are advanced for a similar amount of time. The lenders are advancing higher amounts on car titles to avoid the interest rates caps placed on payday loans. In Georgia lenders are permitted to retain all proceeds after the sale of reposed vehicles. Borrowers who are unable to pay back their loans can refinance them at a fee, which usually ranges from 20 to 35% on the outstanding balance, however if they default completely they risk having their vehicles reposed and sold off to recover the amount borrowed plus any interest due.
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PAYDAY LENDERS LOSING FAITH IN MANY STATES
2007-12-11 08:00:00
The wind has been steadily shifting in favor of those who are against payday lenders. States and Congress congress, have passed laws to regulate their activities and also cap the interest rates they charge. The lenders had successfully lobbied legislators to allow them to operate as they chose and in states with payday loans laws they had found ways to circumvent the laws and charge high fees. The current decline in the sub prime market and the move by congress to cap interest rates for loans issued to military personnel have severely eroded any good will the lenders had. The payday laws passed by congress prohibit lending against checks or electronic debit authorities; this will effectively put and end to payday lending. States are now following suit, Arizona and Montana are likely to introduce a ballot on whether to ban the lenders outright. Previous Attempts to cap interest rates in most states did not succeed and industry players are counting on the same run of luck to counter ...
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OKLAHOMA CONSUMERS WARNED ABOUT SOLICITATIONS FOR ONLINE LOANS
2007-12-10 07:56:00
The Oklahoma Department of Consumer Credit dcc, has issued a warning to Oklahoma Residents against using out-of-state online payday lenders are warning Oklahoma residents. The department has been receiving complaints against these lenders. The department is concerned that the borrowers will not be protected when they take loans from online lenders who are not subject to Oklahoma payday laws. The state law requires the lender to verify employment history, inform the borrower of all interest rates and charges and also check the credit of applicants. Customers are advised to be cautious when giving out confidential financial information online since they cannot be sure that the information will be used for the purpose it was solicited for.
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MILITARY CAPS INTERESTS
2007-12-08 05:44:00
Consumer and Military Advocacy groups successfully lobbied congress congress, to cap fast cash interests at 36% for loans advanced to members of the armed forces and their family members. The consumer groups with the backing of the pentagon persuade lawmakers to include a measure in the 2007 Defense Authorization Act that would control the interest rate on payday loans; the Act came into effect in October of 2007. The bill was implemented later than intended to give industry players and their customers time to adjust to the proposed changes. The bill did not pass through the house smoothly, there was a lot of opposition to it, those against it thought that the act would deny military personnel of short-term credit.
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LOCAL PAYDAY LENDER ALLOWED TO COLLECT ON LOANS
2007-12-07 05:41:00
The Arkansas state Board of collection arkansas, instructed Robert Morgan of Morgan Cash Advance of Mountain Home to shut down his payday loans store after they found him guilty of operating without a check-cashing license. Mr. Morgan complied with the order and closed down his store. The board allowed him to collect on loans he had previously advanced even though he operated without a license. The move is contrary to actions taken by the board against to other lenders who also operated without a license. The two businessmen were both asked to pay fines and refund their customers. The two businessmen had refused to comply with the orders to shut down their stores. One of the two businessmen that were fined has appealed and the matter is now before the courts.
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LOAN SHARK OF THE YEAR AWARD
2007-12-06 05:39:00
ACORN, a local community group from Fresno, California fresno, presented Money Mart with the ?loan Shark of the year? award. The consumer rights group presented the Manager with a certificate and a miniature shark. The group is opposed to the predatory lending prices practiced by payday lenders. They argue that companies such as Money Mart profit from low-income members of society. A $300 loan from Money Mart will accumulate to $352 in two weeks time, if the borrower rollover the loan 6 times ? the maximum allowed under the law- the borrower will owe $341 plus the $352 that was borrowed in the first instance. Money Mart is the second largest payday lender in America after Advance America. The award was presented to 30 other payday lenders across America and Canada.
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IS CAPPING PAYDAY LOANS NECESSARYLawmakers at federal through to Council le
2007-12-05 05:38:00
Lawmakers at federal through to Council level have enacted laws to cap the annual interest rates charged by payday lenders. The need to cap the interest has been pushed by consumer advocacy groups who argue that payday lenders engage in predatory lending practices, which leave their customers in debt cycles. Those in favor of the industry have countered by claiming that the lenders operate in a high-risk market and therefore justified to charge the high interest rates. They believe that they should be allowed continue lending as they do provided that they disclose the loan terms in plain and simple terms as well charges that maybe associated with the loans. The lenders are of the opinion that since the borrowers comes to them without any coercion then they should be allowed to charge high interest provided that they disclose all terms.
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ILLINOIS FINANCIAL AND PROFESSIONAL REGULATIONS MOVES TO ENFORCE NEW LAW.
2007-12-04 05:35:00
Illinois state assembly passed a law aimed at regulating the payday industry. State inspectors idfpr, are moving from county to county looking for violators of the new law. The law sets the interest at $15.50 for every $100 borrowed and limits the loan amount to 25% of the borrower?s paycheck or $1000. The law also permits only 2 loans per borrower at a time with a repayment period of 56 days and the borrower is exempt from court fees and attorney?s fees. Consumer rights advocacy groups have been passing out fliers outside payday loans store to inform borrowers of their rights under the new law. State inspectors have already found some lenders who are violating the new law. Illinois Governor has instructed the Financial and Professional Regulations board inspectors to ensure that the new laws are properly followed and to make sure that no lender is circumventing the law.
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HOW TO HANDLE YOUR PAYDAY LOAN
2007-12-02 04:45:00
Payday loans are usually advanced for fourteen days or more depending on the state that you leave in. they usually attract very high interest but if managed well they will not punch a big hole into your paycheck. Payday loans are regulated by state and federal laws and within these laws safe guards have been put in place to protect the borrower from predatory lending practices. Federal laws require that the lender publish the APR on each loan while in some states the laws limit the APR a lender can charge. There are certain things a borrower can do to reduce the effect of the high interest on their income. They can authorize the lender to deduct the loan from their account on payday or they can clear the outstanding interest and some of the principle they roll over the loan till their next payday. In most states the lender is entitled to demand full payment if the borrower defaults on 3 occasions. In some states the lender can take you to court to recover their monies while in othe...
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DEMYSTIFYING THE PAYDAY LOANS
2007-12-01 04:40:00
Payday lenders have come under fire from all corners, many have called them predators out to exploit the low income members of society and others have pushed for laws to regulate them or put an end to their business all together. The industry see themselves differently, they believe they have a part to play in society; they believe that the loans they offer are the only way low income families can solve small financial difficulties. They contend that the high interest rates are necessary to cover them against the high risks they bear when they lend the money without any credit check or collateral. Lenders argue that the loans are not targeted at the low-income earners because there is no credit check while they are open to all they are not open to minors or to people with no income. Paydays loans are only to be used in emergencies and should be repaid in full on the next payday, however if the borrower is unable to do so then they can pay the outstanding interest and rollover the l...
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FAXLESS PAYDAY LOANS
2007-11-30 04:43:00
Fax-less payday loans are short-term loans, which do not require any collateral and are repaid by your next payday. The loans are quickly processed and no credit check is required. The borrower can authorize the lender to deduct the outstanding amount directly from their checking account when the loans due date. Payday loans are a lot easier to secure as compared to traditional bank loans, the amount of paper work is negligible and there is no need to provide ones financial history. A borrower must be 18 years and over to obtain a loan as well as be in employment and must earn a minimum salary are required by the lenders terms and must maintain a checking account where the amount borrowed will be deposited. A borrower can apply for a loan by going directly to the lenders business premises or from the comfort of their own homes by visiting the lenders website.
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FAST CASH LOANS FACES CHARGES
2007-11-29 04:42:00
The Washington Department of Financial Institutions dfi, and the Attorney Generals office have filled charges against Fast Cash Loans , one of the largest Payday lenders in the state. The lender is charged with illegal collection procedures, overcharging and illegal lending practices. Following a joint investigation the AG?s offices seeks to have the companies lending license revoked, order restitution to borrowers, impose fines and the company president removed from office as well several of the staff involved in debt collection. The investigation was launched following complaints from Fast Cash customers that the company was engaging in illegal practices. Majority of the complainants alleged the company?s collection staff approached them claiming to be fraud investigators and threatened the customers with criminal charges if they failed to repay their loans; such actions are contrary to the Washington state payday lending legislation. In addition to illegal collection procedures ...
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BEWARE OF PAYDAY LOANS
2007-11-28 04:37:00
Anyone who has taken out payday loan will tell you that they went to the lenders because they had no other alternative available to them. The lenders are aware of this and have positioned themselves at very convenient locations such as convenience stores and other such establishments. The lenders will inform their customers that a loan of $100 attracts interest of $30 after two weeks but what they don?t tell you is that the same loan will also have other charges if you fail to pay it with in the agreed period. The charges and interest can over period of one-year balloon to over 390% of the amount borrowed. Many borrowers find themselves in a debt cycle as the struggle to pay off their loans. Some have resorted to borrowing from other lenders to pay of another. In the long run they end up with debts and no savings.
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ARKANSAS FINES PAYDAY LENDER
2007-11-27 04:32:00
A payday lender in Conway Arkansas was fined $217,000 by the state payday loan regulator. The lender was fined and asked to refund his customers after he was found to be operating a payday store without a license. The Arkansas arkansas, state Board of collection members voted in favor of the fine, of the $217,000, $173,050 is to be paid to the state as fines and $44,000 will be refunded to customers. The action comes in the wake of a $1.4 million fine imposed on another businessman who operated 14 stores without a license. Arkansas permits payday loans and currently has over 275 licensed stores. A payday license costs $1,500.
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PAYDAY: INDUSTRY GROWTH
2007-08-31 13:15:00
Payday lending also known as fringe lending registered phenomenal growth over the last decade, according a forum sponsored by the National Endowment for Financial Education and the Consumer Federation of America there were no known payday lenders in America in the early nineties. Presently there are over eleven thousands such lenders with revenues in excess of 48 billion dollars performing 80 million transactions annually. This industry serves mainly low income households with bad credit, most borrowers are mainly from minority groups that are not well served by the banking industry. The high interests charged (usually as high as 35% for a two week loan) has plunged many low income families into debt cycles they may never get out of, thus undermining there financial growth. The growth of this industry reflects the problems that plague the banking sector as whole, simply put; people borrow from payday lenders simply because they have no other alternatives available to them. Opinions ...
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HOW TO COPE WITHOUT PAYDAY LOANS
2007-08-29 13:14:00
Low income families with little or no savings in the bank are more likely to borrow from fringe lenders such as pay day loan venders. Due to the pressure on their limited finances they are forced to borrow to meet unforeseen expenses, Payday loans offer them a quick way out however to the interest charged on such loans ends up putting them in cycle of debt. There are ways such families can avoid debt cycles and at the same time meet unexpected expenses. 1. One proven way is to put aside some money from you pay check every month. Amounts as little as $ 500 can come in handy when one is in a fix. They may take time to build up but in the long run one will be better of. 2. Budgets are time tested ways of controlling expenditure, governments and large co-operations use them. A simple household budget not only helps you control your expenditure but they also point out areas where unnecessary expenditure is being incurred.
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PAYDAY LOANS AN OVERVIEW
2007-08-28 13:12:00
Payday loans has many names it can be referred to as costly cash loan, cash advance loan, post-dated check loans, check advance loan, deferred-deposit check loan and check loan. Payday loans are also known to be reliable, quick, secure, fast cash, responsible lending and short term loans. A good example of payday lending would be if a borrower looking for a payday loan can write a post-dated personal check for two hundred and fifteen dollars to borrow two hundred dollars for up-to fourteen days. The lender who the check has been given to agrees to hold the check until the borrower's next payday. The next step would be for the borrower to either redeem the check by paying two hundred and fifteen dollars in cash that is the amount borrowed and the interest as well as the fees added to it, or refinance or roll-over as it is also called, the check by paying a fee to extend the loan for another two weeks.
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THE MIDDLECLASS WORKERS AND PAYDAY LOANS
2007-08-27 13:12:00
With the growth of payday loans advancing everywhere even internationally to countries like India, Canada, the United Kingdom, Australia and many more. Payday borrowers are not only for the blue collar workers and the low income workers; everyone is getting into it including the middleclass. Middle-class workers often find themselves short on money having spent most of it in paying bills or covering some kind of mortgage or debt, so most of them opt for payday loans because they are fast, secure, confidential and convenient to get. There have been several payday lending companies that have claimed that at least thirty percent of its clients were middleclass.
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ADVANTAGE OF TAKING A PAYDAY LOAN
2007-08-26 08:44:00
There are several advantages in taking out a payday loan and one of them is that when you apply for a payday loan it does not take months or even days to get the loan, you get the loan right away or give or take a few hours. Another advantage is that payday lenders do not do any form of checks. They do not care if you have bad credit with your bank or have recently declared yourself bankrupt. Payday loans are the fastest loan one can get and banks are even now offering them. You do not have to look far for payday loans they are everywhere and are now online.
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PAYDAY
2007-08-24 08:42:00
It is always important to know a few things about what it is you are applying for before you take the giant leap. Payday loans are small term loans that offer you are chance to finish paying off your bills before your paycheck comes through or to complete your debts before the debtor collectors come calling. Payday loans are readily available for anyone who knows the risks that come with taking out a payday loan. Most of the time the problems that arise from payday loans is because of the high interest rate and the expensive fees that are put on them, that and the fact payday lenders let people borrow the loan again to payoff the first loan off. This most often leads to a debt cycle.

HIDDEN DANGERS OF PAYDAY LOANS
2007-08-22 12:19:00
There are several hidden dangers that come with taking a payday loan. First and foremost would be the debt cycle syndrome. This usually happens to most payday borrowers because they do not manage their money well or do not budget or take time to explore other options before borrowing payday loans. Most of these people that borrow the payday loans are usually broke and when they borrow the payday loan they do not have the money to pay it back so they borrow more from the same lender or from a different one and because payday lenders do not do any form of checks whether it is credit or bankruptcy, they end up getting away with it. They keep borrowing from payday lenders to pay off the first loan and so on until they are in a cycle of debt or debt cycle.
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HIDDEN DANGERS OF PAYDAY LOANS
2007-08-22 12:19:00
There are several hidden dangers that come with taking a payday loan. First and foremost would be the debt cycle syndrome. This usually happens to most payday borrowers because they do not manage their money well or do not budget or take time to explore other options before borrowing payday loans. Most of these people that borrow the payday loans are usually broke and when they borrow the payday loan they do not have the money to pay it back so they borrow more from the same lender or from a different one and because payday lenders do not do any form of checks whether it is credit or bankruptcy, they end up getting away with it. They keep borrowing from payday lenders to pay off the first loan and so on until they are in a cycle of debt or debt cycle.
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PAYDAY LENDERS
2007-08-21 12:19:00
You can find a payday lending store in any state nowadays except from New York, Texas and some other states which have banned payday lending. Payday loans stores are also online for quicker and more efficient lending. With the number of borrowers looking to get payday loans growing everyday payday stores can now be found everywhere, they are probably in your city and you didn’t know it. Payday lenders usually operate from small stores or franchises. It is reported that in Arkansans sixty eight million dollars is lost to payday lenders annually.
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PAYDAY LENDERS
2007-08-21 12:19:00
You can find a payday lending store in any state nowadays except from New York, Texas and some other states which have banned payday lending. Payday loans stores are also online for quicker and more efficient lending. With the number of borrowers looking to get payday loans growing everyday payday stores can now be found everywhere, they are probably in your city and you didn?t know it. Payday lenders usually operate from small stores or franchises. It is reported that in Arkansans sixty eight million dollars is lost to payday lenders annually.
More About: Lend , Lenders , Enders