Payday Lenders begin to turn the Tide against Proposed CFPB Regulations

Payday lenders have been living with the pressure of a very real threat to their industry for some time now. The threat is the new regulations that the CFPB has cooked up for the industry. In the mainstream media and in some court hearings, the payday lenders have taken quite a beating from the CFPB so far. It looks, however, like the lenders have finally had it, and they have started to take action to push back against the CFPB and its proposed payday lending industry regulations.

Jennifer Sons is from Chino Valley Arizona and she is also a payday loan customer. She wrote a note that got delivered to D.C. via a Cincinnati group called Axcess Financial. Part of that note read, “These loans are life savers!! Do not change anything please!”

Another payday loan customer, Kathy Walsh of Shellsburg, Iowa wrote, “If I did not have the advantage of a payday loan, I wouldn’t be able to pay for things like my medicine when I run out, especially since I get paid twice a month!”

There have been so many personal notes and comments posted online that the federal government’s website, Regulations.gov, has them all listed under a section of the site called “What’s trending.” At last count, there were more than 22,500 comments and a minimum of 830 handwritten notes that were sent through via Axcess. This group runs the Check ‘n Go and Allied Cash Advance Locations. An additional 800 comments were posted by customers of Advance Financial in Nashville. Some of these notes had straight-to-the-point text, like “I have bills to pay,” and “Leave me alone!”

The correspondence was recently reviewed and it was determined that the letters were from consumers who were concerned about their access to lines of credit going away. Those types of letters and comments far outweighed the comments from critics of the payday loan industry. The critics, mostly consumer watchdog/advocate groups, believe that the lenders are leading consumers down the wrong path and they say that credit for working class people will not go away. They claim that new financial products will offer people the chance to borrow money with more affordable fees.

Providers in the payday lending industry, however, say that the rule will force legitimate lenders to close down their companies. They also say that the rule will prevent lower income consumers from having access to emergency cash and lines of credit. In this battle the lenders have found that the borrowers are their most powerful weapon.

Cullen Earnest is the VP of public policy for Advance Financial. He said, “This is just the tip of the iceberg!” The last day that the CFPB will accept public comments on the rule is October 7th. Earnest warns that there will be many more consumer letters and comments before that day arrives.

As things now stand in most states, payday lending companies can make shorter term, smaller dollar loans to just about any person who has a job. If borrowers are unable to pay back their loans on time, they can roll the loan over into a new one. Opponents of payday lending say that this process creates cycles of debt for poor people. They hope that the new rules will put an end to the creation of these cycles. It is important to know, however, that most people who take out payday loans do so with understanding of the fees and the loan terms. They also usually pay back their loans on time. Those who roll loans over often do so willingly, and fully understanding that it will take them additional time to pay the loans back. This is no different than if someone chooses to skip a credit card payment; except that the CFPB would rather target the payday lending industry with stiff regulations than it would larger providers of financial services, like big banks and credit card companies.

Study Proves that Payday Loans Provide Necessary Financial Services for Millions

We live in a world where it is easy to get inundated with data, facts, figures and opinions. It is without a doubt that the Internet is one of the greatest achievements of mankind. Being able to access nearly any information ever published with the simple click of a mouse has radically changed the way that we all live our lives. As is usually the case, however, there are also downsides to having so much information ready for consumption, on demand. We human beings can really only meaningfully process so much information in a given amount of time. With so much information being available, it is often difficult for people to critically decipher all of the data that they consume.

Such is the case with payday loans and other forms of alternative lending. There have been thousands of articles and op ed pieces written that bemoan the evils of this kind of lending. Some “financial experts” have gone on record time and time again saying that these types of loans trap people in never-ending cycles of debt. As if traditional lenders didn’t do the exact same thing! Here’s the thing, though. Yes, we have lots of information on hand about payday lending, but the vast majority of this information is clearly anti-payday lending, and is not the type of information that people need to make a logical, rational decision about this type of lending.

Recently, a profession with Thompson Rivers University, Dr. Laura Lamb, said that the government will have to offer more incentives for big banks to offer fair services to underbanked customers, or the alternative lending industry will continue to be the only source these folks can depend on for much-needed financial services and loans.

Dr. Lamb did extensive research on payday lending back in 2012. She was a bit surprised to find that even though payday lending customers pay high fees on their loans, and that some payday loan customers do indeed wind up in debt because of the loans they take out, that these payday advance loan lenders were actually providing a service that is very necessary for financially marginalized consumers.

Lamb went on record saying, “If these places were shut down, the people using them would have nowhere to go.” Lamb did a survey that included 105 residents of Kamloops and she discovered that 78 percent of the people in this area that use payday loans made $20,000 or less each year. The money these people get from payday lenders were being used to take care of necessities, like bills, rent, food and medical care. She also found that many of these people had mainstream bank accounts, but that these banks were unable to provide the consumers with the basic financial services they need.

Lamb suggested that her financial literacy survey found no link between a person’s financial know how and their use of payday loans. She went on to say, “People don’t use these places because they’re not financially savvy. They use them because they don’t have any other choice,” said Lamb. “The people who are using them are just digging themselves deeper into poverty.”

Lamb is certainly not someone that people would describe as a supporter of the payday lending industry. However, her findings have proven that these types of lenders offer valuable financial services to marginalized borrowers, services that traditional banks and credit card companies are not willing to offer at the current time. As such, it is apparent that alternative financial providers, like payday lenders, offer vital financial services to millions of people from all walks of life.

The Right Time To Take Out A Loan

The idea of taking out a payday loan in order to pay for holiday gifts is never a good idea. Because you never want to make a habit out of taking out a payday loan, you should leave that option for after the holidays when you may really need it. While taking out a payday loan in order to get a small advance to pay bills on time is a smart idea, using that amount of money to buy gifts is not, if only because you view it as “free money”.

 

Loans are never free money, and while a payday loan may be one of the smartest loans that you can take out, it is not for gifts or holiday spending, it should be saved for when you really need it.

When you are dealing with the financial Holiday woe’s in January and February, you want to save a payday loan for a situation where you may not be able to pay a bill on time. Instead of taking the late payment penalty, taking out the loan may save you money, especially considering that you know that you will have the money to pay it off when your next paycheck comes in. While it may take a couple of months to get your finances back in order, when you take out a payday loan in December just to buy more gifts, you run the risk of making the situation worse in the months after the holidays, causing you to go further into debt.

5 Steps to follow when you consolidate payday loan

Do you need cash? If yes, then are you aware about the payday loans? A payday loan is actually a short term loan that enables you to get money instantly during emergencies. If you have taken out several payday loans at a time, then you will find it difficult to manage each of them. You may consolidate your payday loans to make a single monthly payment. The greatest advantage of this loan is you can get it even if you have a bad credit score. Actually, the lender will not check your score before giving you the loan. However, the drawback of payday loan is that you are charged high interest rate on it. As such, you should think twice before you decide to obtain this loan. Payday loans are also known as cash advance loans.

5 Steps to consolidate payday loanconsultation_bad_debt_management

Check out the 5 steps how payday loan consolidation can be done.

1. Obtain a secured consolidation loan – If you have your own house, then you may take out a consolidation loan that is secured. You can obtain this loan at a low rate of interest. If you owe huge amount on your payday loan, then this option will help you pay off the loan.

2. Search for private lenders who will give money – If you have too many payday loans, then you must be worried as to how you will get rid of them. You may search for private lenders who will provide you money. This way, you will be able to eradicate the payday loans.

3. Use plastic money that do not have annual fees – In order to consolidate payday loan, you may use plastic money that does not have annual fees. Also, see that your credit card charges 0% introductory rate for repaying the loans. You will have to make a single payment every month and pay less in fees and interest payments.

4. Take out unsecured loan from a financial institution – You may obtain unsecured loan from a financial institution that is authentic. For many people, this is a great option since no collateral is required for it. Make sure you have a good credit score if you want to avail the advantage of getting this loan.

5. Ask your friend if they can provide you a loan – You may ask a close friend of yours to provide you a loan. If he agrees to it, make sure the loan agreement is made in a written form. This will enable you to avoid any kind of misunderstanding between both of you. Since you are obtaining the loan from your friend, you can request him to charge a favorable interest rate.

If you have taken out a payday loan, then you should make it a point to repay it within the specified time period. Since you are charged high interest on this loan, try not to delay the payments. Thus, you need to follow the above-mentioned steps when you want to consolidate payday loans and come out of it.

Short Term Loans Bad Credit Borrowing Options Explained

Do you know anyone who has never run out of money between work pay checks? Yeah, us neither. It’s a simple fact of life that too often we end up short on funds, but long on days between our pay days at our jobs. During those times, however, the expenses continue to roll in. It’s precisely this reason that so many people cite when they make the decision to look for short term loans bad credit borrowing options. After all, it is nice to get a small cash advance to help you when money gets a little too tight.

When are “Bad Credit Loans” a Good Thing?

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If the name “Bad Credit Loans” scares you into thinking that a payday loan is going to ruin your credit rating, you can relax. These loans are really put into place to actually help people with bad credit. You see, since the banks and credit card companies will no longer offer loans to people with less-than-perfect credit scores, some people just can’t get financial relief when they need it. Short term loans lenders, on the other hand, willingly provide loans to you – no matter what your credit score is. It’s no wonder that payday loans are considered the very best of all the short term loans bad credit options that people have today.

Personal Loans: Your Short Term Loans Bad Credit Best Bet

Here’s something that makes payday advance loans even more appealing – these loans are unsecured personal loans. If you take out a loan with the bank, chances are they will want to use your home, car or other possessions as collateral, or security, on the loan that they provide. Your payday lender will never ask you to offer up collateral to get a loan.

Payday Loans Online and Interest Rates

Annual Percentage Rates (APRs) do not apply to short term loans. When you get a payday advance loan, you only pay a small, one-time fee to get access to the money that you requested. Don’t be fooled by media stories that talk about sky high interest rates on short term payday loans, these stories are simply not true. Since you pay back your short term loans bad credit loans in just a few weeks, you don’t have to deal with fluctuating interest rates fees.

Get Your Online Payday Loans Application Processed Today

You can use this website as a way to gain direct access to the best payday advance lenders. One application submission is all it takes to deliver your loan request to a network of the country’s best payday lenders. Today may be your day to get your online personal loan!

Is it Easy to get Short Term Loans Online?

Most people are pretty much fed up with long term debt. There’s nothing worse than needing to borrow money, only to find that you will be paying on your loan for many years to come. Short term loans, also known as payday loans, actually allow for you to borrow small amounts of money and to pay your entire loan off in a few weeks. If you’ve ever wished you could find a loan with simple, short terms and easy to understand fees, you’ll find that online short term loans are the way to go.

It’s very easy to apply for an online short term loan. You simply fill out the loan application form on this site with some basic information. Include your contact information, bank account information and some basic information about your employment situation. That’s really all it takes to get the ball rolling on your payday loan.

Short Term Loans Bad Credit Borrowing Options

So, are bad credit loans really bad for your credit? Absolutely not! In fact, if you have bad credit, you’ll find that taking out short term loans via the Internet may be your best bet when you need fast money. You can borrow the money you need without ever having to deal with a credit check when you work with our network of payday loans lenders.

Personal Loans are Finally Simplified

Payday loans online are getting so much attention because they really do simplify the act of borrowing money. Since we can never count on our paychecks lasting all the way until the next time we get paid at our jobs, it’s nice to know that these small loans provide a short term safety net to help you pay bills, cover expenses and stay on top of day-to-day expenses.

While borrowing money from traditional lenders is sure to remain complicated and difficult for many years to come, it’s a welcome relief to millions of people to finally have an easy, quick way to borrow money for virtually any bill or expense. Short term loans are ideal for people who don’t want all the hassles associated with conventional, long term loans.

Payday Loans: How Payday Loans Online Work

With so many people choosing to take out payday loans when they need fast money, one might wonder what these loans are, exactly, and how they work. You see advertisements for payday loans on TV, on the Internet and even hear them on the radio. But many people seem to be a bit confused about these types of personal loans. To help clear things up we have put together some helpful information about payday loans and how they work.

Payday Loans – Short Term Loans Bad Credit Issues

One of the first things that must be discussed about payday loans is how they work for people with bad credit. If you try to take out a conventional bank loan, and you have less than perfect credit, you probably won’t get the loan you need. Big banks and lending companies simply refuse to loan money to people with bad credit these days. However, you’ll find that the majority of payday lenders simply do not care about your credit history.

So Bad Credit Loans aren’t really a Bad Thing, right?

With the fact that payday lenders don’t use your credit as the basis for approving your loans, you could definitely say that payday loans for bad credit borrowers are a good thing. We all run into those situations where we need money. Since the conventional lenders don’t want to give money to you if your credit score is not all that great, it is really nice to know that you still have lending options to choose from. Our network of top payday loans lenders are ready and willing to lend money to people – regardless of their credit history.

Personal Loans Made Easy with Payday Loansworried_mom

Unlike going to a local cash loans location or bank, getting payday loans online is pretty easy. You start off by simply going to our secure, online loan application. Once you submit your loan application, we match your request up with the best lenders to suit your needs. You’ll receive an email notification when your payday loans request is approved, and then you’ll agree to the loan terms your lender provides.

Once you agree to the terms of your payday loans, you’ll receive your money on the next banking day. You are free to use your money for any emergency or unexpected expense or purchase that you want to use it for. You’ll pay back your loan in full on your next payday. As you can see, payday loans really are simple and convenient for virtually any monetary need.