Targeting Bad Credit Individuals with Payday Loans

Written by David Schmidt. Posted in Payday Loan Debt

Given the current state of the economy, there are millions of people who are suffering from bad credit and a lot of debt. More importantly, there are a lot of poverty stricken individuals who are suffering from a poor life that makes them easy targets for certain marketing tricks by the payday loan industry. The people that have started marketing campaigns in the industry are ruthless for their ability to market well to individuals that do not really benefit all that much from getting payday loans in a fashion that traps them into paying for months or years.

It is a shame that so many payday loan companies utilize this method, but it is something that is being contested for many months. The reason it is so contentious is because there are a lot of people getting into debt due to these advertisements. The government thinks they are too aggressive and many people who follow the debate would agree.

Bad Credit OK Advertisements

A lot of the payday loan companies have things that are along the lines of “bad credit OK” or similar such statements that can really cause problems for people that are trying to avoid getting into debt. When it comes to most debt, there are a lot of barriers to entry and most bankers and creditors are not going to openly advertise to waste their time with people that will not pay them back. Because the payday loan industry actually makes more money and profits off of failure, it is a good idea for them to advertise to anyone in this way.

There is a huge difference between the payday loan industry and that of many other industries. The main difference is just that the payday loan companies can really benefit even when someone is in financial trouble. By getting them hooked on a payday loan trap, they can get money from them for many months and years on end without ever having the original debt paid off.

This is one of the biggest problems with the payday loan industry and it is one that is forever costing people a lot of time and money. Hopefully it is something that can be curbed with price or interest rate capping, but there is a lot of evidence to suggest this will not help. Northern states have tried these and other methods so it is just up to the government to stop aggressive ads and educate people about finances.

Easy Money Hard to Resist

The payday loan companies prey on the fact that it is easy money and very hard to resist. Most people who are considered to be poor will try to get these funds as soon as possible, but with the right education can be convinced that it is not worth it to get into this type of debt. We can’t stress enough that if you must get a payday loan shop around to get the best rate and make sure you can pay it back quickly. If you find yourself in deep with these debts please give us a call. We can absolutely help you out of the trap.

Short Term Lending Database

Written by David Schmidt. Posted in Payday Loan Debt

Across the United States, there are new technologies being developed every day that can help people to make better decisions. When it comes to collecting data in the public’s interest, the government is very interested even if they are slightly behind the times. A new database proposition in Alabama has payday loan companies up in arms. The short term lending database in has attracted the eye of a few payday lenders that are not at all happy with the legislation. In fact, they have gone so far as to file a lawsuit to block the legislation from going anywhere.

Lending Database for Payday Loans

The lawsuit has been filed by companies in Alabama called Cash Mart, Rapid Cash, and a few other lenders. They claim that the Banking Department is working outside of bounds of their authority in order to over regulate the payday loan industry. While they have a valid point, it is hard to say where it will be valid in court given the public’s opinion on the payday loan industry.

Most people consider the industry to be very low quality and offering high interest rate loans that can really ruin some peoples’ lives. The majority of people who are dealing with these lenders are getting into debt with lenders and then finding themselves in debt with other companies to pay off the first debt. This type of payday loan trap is exactly what the government is seeking to avoid.

More importantly, the government wants to avoid lenders from providing loans that are over the $500 cap. They claim that the database is going to offer the tools necessary to track this type of thing and ensure that people do not end up paying too much for their loans.

Creating the Lending Database

After a law called the Deferred Presentment Services Act was passed in 2003, the regulators have been trying to implement it in order to get the database they need for protective purposes. For many years it was too difficult to pass any legislation that would allow the government to create a relevant database to track the lenders.

Today, it seems like it is a much more viable opportunity for the legislators to get the job done. Though most people are in favor of anything that helps the government regulate the payday loan industry, the legal representation of the industry is very strong.

Whether or not the database will be created is up to the courts to decide. Popular opinion says that they will be willing to create whatever it takes in order to stop the lenders from taking advantage, but lawmakers are a little more skeptical. The legal process for regulation is a tricky subject so it is going to take some time in order to determine the outcome. Overall, the move is an inevitable step in the direction towards regulating the industry with the use of modern technology. The database technology is making it easier to create these types of information banks, but only if the law allows society to do so.

At Payday Loan Management Services we are proud to be one of the very few companies that many short term lenders and lenders that offer signature loans will even work with. Call us at (877)834-6700 to see if we can help you too.

Payday Lenders Targeting Individuals With Bad Credit

Written by David Schmidt. Posted in Payday Loan Debt

Given the current state of the economy, there are millions of people who are suffering from bad credit and a lot of debt. More importantly, there are a lot of poverty stricken individuals who are suffering from a poor life that makes them easy targets for certain marketing tricks by the payday loan industry. The people that have started marketing campaigns in the industry are ruthless for their ability to market well to individuals that do not really benefit all that much from getting payday loans in a fashion that traps them into paying for months or years.

It is a shame that so many payday loan companies utilize this method, but it is something that is being contested for many months. The reason it is so contentious is because there are a lot of people getting into debt due to these advertisements. The government thinks they are too aggressive and many people who follow the debate would agree.

Bad Credit OK Advertisements

A lot of the payday loan companies have things that are along the lines of “bad credit OK” or similar such statements that can really cause problems for people that are trying to avoid getting into debt. When it comes to most debt, there are a lot of barriers to entry and most bankers and creditors are not going to openly advertise to waste their time with people that will not pay them back. Because the payday loan industry actually makes more money and profits off of failure, it is a good idea for them to advertise to anyone in this way.

There is a huge difference between the payday loan industry and that of many other industries. The main difference is just that the payday loan companies can really benefit even when someone is in financial trouble. By getting them hooked on a payday loan trap, they can get money from them for many months and years on end without ever having the original debt paid off.

This is one of the biggest problems with the payday loan industry and it is one that is forever costing people a lot of time and money. Hopefully it is something that can be curbed with price or interest rate capping, but there is a lot of evidence to suggest this will not help. Northern states have tried these and other methods so it is just up to the government to stop aggressive ads and educate people about finances.

Easy Money Is Hard to Resist

The payday loan companies prey on the fact that it is easy money and very hard to resist. Most people who are considered to be poor will try to get these funds as soon as possible, but with the right education can be convinced that it is not worth it to get into this type of debt. We realize that sometimes people need to borrow money but make sure you are able to get these debts paid back quickly or you can find yourself in a trap.

Ways to Avoid Payday Loans at the Grocery Store

Written by David Schmidt. Posted in debt

A lot of people who are forced to get payday loans are not making adequate use of the money that they do have. Many state departments are trying to offer solutions to teach uneducated and low income individuals about finances so that they can reduce their expenses and hopefully get out of debt. There are ways to avoid payday loan debt altogether with the right purchasing decisions.

In the following article, we will give you a few tips so that you can avoid payday loans if possible. By saving money on food, you can reduce the most expensive thing that you spend money on a regular basis.

Nutrition and the Grocery Store

When it comes to eating on a budget, a healthy diet might seem like it is hard to achieve. However, it is actually a lot easier to achieve than you may suspect. Most people who are buying groceries at the store do not consider a few things. First, they often neglect all of the benefits of living a healthy lifestyle. This includes things like reduced medicare and medical bills. It also involves less time away from work and losing money to medications.

To get affordable groceries that are healthy, consider supplementation with a full multivitamin. This type of product will give you all of the nutrients that you need in order to live a healthy lifestyle and may even offer you the ability to skip purchasing certain foods. Still, you can purchase a lot of different types of vegetables that have various nutrients responsible for good health.

The good thing about these vegetables is that they will fill you up a lot faster than the non-healthy foods. Buying chips and snacks is not only expensive and can cause you to spend more money than you need, but they will also not be nutritious enough for you to maintain a healthy diet. Instead focus all your money on healthy meat options and vegetables. If you do this at the grocery store, you will be able to avoid spending too much money at the store and hopefully avoid payday loans.

Saving Money on Household Supplies

Another option that you can use in order to save money is to purchase household supplies in a cost effective manner. You will always need toilet paper and paper towels, but there is no reason to spend way too much. Incorporate bulk purchases and then reuse the things that you can. Oatmeal and coffee tins can be reused for a variety of other purchases (including starting your own garden to provide vegetables).

By buying in bulk and keeping an eye on your wallet, you can do a lot to save money at the store. Even if it is only $10 each time you visit the store, it might add up to $100 over the course of a month. That money is enough to pay for many utilities and could keep you from needing a payday loan. Even a small amount helps for some of the financially strapped individuals who fall victim to a payday loan trap.

Religion Fights Payday Lending

Written by David Schmidt. Posted in debt

The southern United States is notorious for their religious nature. It is a part of the culture that is as deeply ingrained as anything else in that region of the world. This religious nature often makes it difficult for people to do anything that might be construed as against God or Christianity in any way.

Unfortunately for the payday loan industry, religious people in Alabama have found something seriously wrong with the way that they are doing business. According to many in Presbyterian congregations, the payday loan industry is extorting people in ways that Jesus would have never approved of.

Alabama Payday Loan Bills

Two specific bills have made their way through legislative branches in Alabama with an effort of limiting the effect of payday loan industries. Most of these industries are able to make a lot of money off of individuals who are trying to get by on monthly bills and end up trapped in a cycle of debt. Some situations even include a $100 debt requiring $17.50 in interest. A loan of $1000 is therefore $175 for the interest rate, which is extortion according to many.

Some Presbyterian ministers from Alabama have come from across the state to the capital in order to protest the extortion of the payday loan industry. Ross Reddick is one such man who came from his Sylacauga, Alabama home to spend time protesting what is going on in the state.

Interest rates of 400% are not rare and it is commonplace for people to file for bankruptcy after getting into a large cycle of debt that consists of many years of work.

Changing the Law Isn’t So Easy

Unfortunately, the two bills that were supposed to make such a great change for the people of Alabama was watered down considerably before it ever made it anywhere in committee. The bills were both changed to avoid some of the problems that the payday loan industry has with these stipulations and regulations that inhibit their ability to make money.

For a lot of people, this is a sad state of affairs. They were so close to changing the law in their favor in Alabama, but things have not gone their way for a long time. It seems that people will not be able to count on their state government to protect them so long as the interest groups have the power to make changes in legislation. Just bare in mind if you must get a payday loan make sure you are able to pay it back quickly. As well, never get another loan to pay off a loan. Most people get into the trap even further by getting more loans to pay off their other debt.

Utah Passes Payday Loan Legislation

Written by David Schmidt. Posted in Legislation

Almost two years ago many Utah senate members were embroiled in a scandal that rocked the entire state and reverberated across the nation. A modest payday loan reform bill was stopped in the senate with tactics from many different payday lending interest groups, which led to the resignation of Attorney General John Swallow. Since then, the payday loan reform bill has gained steam and has aimed to make a change for many years.

Until recently, it was impossible to make changes due to the power of lobbying groups. Now the scandals of previous years have made it nearly impossible for interest groups to get in the way of passing legislation.

Utah Senate and Governor Legislation

So far, the Utah legislation has gone through the senate with flying colors. The specifics of the bill are modest, but they go a long way to protecting the individuals who have taken out payday loans and struggle to pay them back. Right now, the law is not as helpful for citizens who have payday loan debts, but the senate’s new bill is aiming to change all that.

The main reason it has passed so easily is due to the high majority of senators who fear retribution in the same way that scandal rocked politicians a few years ago. To avoid such scandals, many senators are convinced that passing the legislation will be a better idea.

The next step of the way is to have the governor of Utah sign the bill. Whether he does so or not will probably decide his fate in a number of ways. The lobbying groups for payday loan industries is typically very strong, but public opinion is doing a lot to sway the way these politicians are making their decisions.

Payday Loan Legislation Details

The details of the payday loan legislation in Utah are not that liberal. In fact, the bill only calls for borrowers to get time to pay off the loans without sanction or high interest rates. After 10 weeks of this high interest rate period, the legislators and politicians think that common folk need some type of break in order to release themselves from the cycle of debt.

The ironic senate vote this time around was 29 in favor and 0 against, which just shows how important public opinion can be in order to change a law. Most people know that there is a lot of power behind the payday loan companies and they want politicians to stand up to them in order to make the right decisions.

If politicians are going to be the representatives of the people, they have to listen to the people more than the companies that fund their campaigns and political ventures. It is important for states to make moves like this one in order to show the nation that payday loan legislation is not a forgone conclusion. Even if most people are cynical about the shape of the legislation today, it is possible to make a change with consistent effort towards a final goal.

Predatory Lending Practices

Written by David Schmidt. Posted in debt

Predatory lending and loan sharksLenders do not have a lot of fear when it comes to trying to make money. Of course, their only real goal is to generate profit and benefit the shareholders who stand to get rich as a result of the efforts. All of that being said, it is still not something that is either good for society or communities. In the case of the United States, there are plenty of communities that are being ripped apart not only by the payday loan debts, but also because of the debate about what to do with the loans and the lending laws that are in place.

Many regions of the country are desperately seeking other methods of getting payday loans under control. Some have proposed to do capping and others to regulate other aspects of the market. The payday loan industries see the writing on the wall and are trying to influence this legislation as much as possible; they have usually succeeded, but it is becoming less possible for them to do so now. Thankfully, people are waking up to the predatory lending practices that they are using.

Middlemen in Payday Loan Debt

One of the things that the government is going after is the middlemen who are providing payday lenders with all of the information that they need in order to target common men and women who are just trying to get through their day with work and family responsibilities. The majority of these middlemen are lead generation websites that can make a lot of money from getting information and sending it over to the payday loan companies. These middlemen are able to get all of the advantages that they could want from working in the industry, which includes great kickbacks, profit, and not a lot of scruples involved.

These middlemen can make millions of dollars by selling bank account information, email and even home addresses for the payday loan companies. It is something that a lot of people are having issues with in the modern world.

Harassment and Marketing

The two other predatory lending practices that many people despise are the marketing ideas that come from many of the cash advance companies. For example, people who are trying to market a certain loan will write things like “Bad Credit OK”, which makes it really hard for people to avoid getting the money that they need.

Finally, the harassment that comes after getting the loan is something that a lot of people are trying to overcome at all costs. It is one of the real big problems in the industry that is getting slowly eradicated with the help of some of the legitimate payday loan consolidation companies that are out there today.

Local Economies Suffer with Payday Loans

Written by David Schmidt. Posted in Legislation

Recent studies have started to show that local economies with heavy payday lending are suffering as a result. While it is difficult to lay the blame on payday lending (as there is a huge correlation between stagnating economies and payday lending), it is interesting to see how the city of Anniston, Alabama is interpreting the latest data. A recent study by the Insight for Community Economic Development has had some harsh things to say about the payday loan industry. This information has brought to light some of the bigger problems that people are having with the industry as a whole.

How Local Economies Suffer

The study released last March indicated that the payday lending companies cost the economy $744 million in 2011 and helped to lose more than 14,000 jobs. One would think that because they are so big they are actually helping the economy (by paying taxes) and even providing jobs (for clerks etc). It seems like neither of those things are happening and there are many different reasons why the local economies are suffering as a result.

The first and most important reason is because the payday loans reduce household spending. Interest rates are so high that people who want to pay them off simply don’t have any capabilities to do so. The vast majority of people who are dealing with the payday loan industry don’t want to spend money elsewhere because of the exorbitant interest rates that are applied to the loans.

This study indicates that these changing values and motivations are the cause of the local economy problems across the country. The study was conducted by a California based organization. That state is also trying to determine a solution for their payday lending problem, which has reached new heights. It is now the second worst state when it comes to lending.

Payday Lending and Legislation

Many states are recognizing the impacts that the payday loan industry is having on their small economies and they are focusing on changing the law to help the public cope. The vast majority of payday lenders are unable to handle the legislation that comes with local councils, but they have done a great job getting rid of legislation that impacts their ability to make money.

Most of the companies have spent a lot of money in order to lobby against legislation that would impact their ability to generate profits and revenue. Thankfully, the public opinion is changing so much that it is going to be hard for them to overturn it all.

The future of payday lending looks grim in some cases because of the public opinion. New legislation is passing every single day in small towns and even though the larger state legislative bills are unable to pass, it shows there is a public awareness. However, the payday lenders are consolidating more and becoming larger companies that are capable of fighting these legal limits on their activities. Only time will tell what will happen with the industry.

Will Louisiana Loan Capping Work?

Written by David Schmidt. Posted in Legislation

There are many different legislative procedures going on across the nation in the payday loan industry. Many of them are utilized to provide some type of regulation one way or another, but they are not all working as effectively as they should. Either way, this is part of the devolution process that is making the states more powerful and the Federal government less so. By giving states more power to decide over their own affairs, it is possible to use them as testing grounds for others.

In Louisiana, a new bill is being pushed to cap some of the costs for the industry. In Baton Rouge (the capital of Louisiana), a new bill has been started to begin the process of making payday loans less painful for those who are caught paying them all day. The biggest question for lawmakers inside and outside the state is whether or not the loan capping is going to work.

What is Loan Capping in Louisiana?

Right now there are many payday loan companies that charge extremely high rates on people that utilize their services. It makes sense for this to occur because of the free market prices of these collateral free loans. Nonetheless, it can be detrimental for the longevity of senior citizens and other people in the states of Louisiana and the rest of the nation.

On Monday they are seeking to make it impossible for payday loan companies to charge interest rates of anything higher than 36%. Most of the time the companies are able to charge individuals upwards of 100 or even 200% on their payday loans. This is something that has groups like AARP very concerned given the large number of elderly individuals who are getting into debt with these types of companies.

Some of the payday loan companies are fighting back as usual. Not only are they using lobbying groups to help them win support to crush the legislation, but they are outspoken about the events as well. For example, one public affairs vice president mentioned that the government is seeking a policy of “backdoor prohibition”. While most politicians, legislators and citizens will not agree with that, some people fear heavy restrictions on these types of companies.

There is a lot at stake with loan capping, which is why it is such a hot topic in the state of Louisiana and in the nation as a whole. If a company gets their loans capped, there is a good chance they might be unable to make the business work properly. The whole industry is based on few people repaying them back and therefore needing to charge very high rates to make up for it. How will capping effect their business?

Loan Capping Nationwide

Many people are concerned with the prospect of loan capping across the nation. It screams of regulations that can squeeze out a certain industry that does offer services to millions of people. Whether it has predatory practices or not, it is used as a way of helping people who are in need of cash without any credit.

It will be interesting to see what happens in the state of Louisiana. Considering there are so many different issues to the debate, it will be interesting to see if all parties can make it through such a predicament intact.

Why Payday Loans Will Never Go Away

Written by David Schmidt. Posted in debt

Payday loan moneyA recent bill in Louisiana was not passed for a few different reason, but namely because the payday loan industry was able to convince enough people that they are a good thing for the state to have. It comes right in the face of a new study showing that the payday loan industry cost the state of Louisiana around $142 million in net economic activity over the past few years. It is a huge issue that many people are contemplating, but there are some serious considerations moving forward with payday lending reform.

The first is that the payday loans are never going to completely leave the state even if everyone wanted them to. For the most part, the urban poor and even many in the rural areas need the assistance of the payday loan companies when it comes to emergencies and other similar types of loans. Even studies are showing that they would find the money elsewhere if they did not get it from a payday loan, which has prompted many lawmakers to re-consider their decisions.

Payday Lending and Regulation

One of the biggest problems with the regulation is that the payday loan companies have a lot of sway and support because of the money that they control. Many of them are putting a lot of money into things like the lobbying firms that can help them to get influence in the legislatures and then make changes the way that they want them.

Most of the regulators know that this is happening in some regard, but have to be cautious with how they approach it. If they are too relaxed, there could be political problems; a Utah governor was forced to resign after it was obvious that payday loan companies were too close with that party after failing to pass a bill.

Yet, there are plenty of politicians that do not want to make waves with the payday loan and financial companies of that nature. They are trying to avoid the regulation because it obviously suits them from a financial and political perspective.

The other issue, which is arguably more important, is the fact that these people in poorer regions actually need the loans in order to survive! Many people who are trying to get over their problems with the payday loans will need to be able pay off these debts as soon as possible, but it can’t happen without the right kind of legal status.

Choosing Consolidation Over Bankruptcy

Written by David Schmidt. Posted in debt

There are a lot of people who think that it is so simple to get rid of their payday loans with a simple bankruptcy agreement. In general, this is something that must be carefully considered and one that can cost people a lot of money over the long term. More importantly, for some of the poorer people who decide to opt for bankruptcy, it is a method that prevents them from having any kind of future in borrowing in most situations. No creditor, not even a payday loan company, wants to provide the money to someone who just decides to get bankruptcy protection every time the debt burden gets too large.

When it comes to options for a person with too much payday loan debt, it is a good idea to choose consolidation over any other method. There are a few reasons why a payday loan consolidation might be in order for your dues. The first reason is if you are trying to borrow money at some other point in your life. As you will see, getting money is going to require some credit and bankruptcy can ruin that for a long time. Families that have children and have emergencies need to be able to get the loan money they need.

Consolidation Process for Payday Loans

A lot of people who go through the payday loan trap find that they need help at some point towards the end. After paying for a few of the different interest rate payments and getting stuck with some of the other issues, it is hard to continue paying for the amount that the payday lenders are asking. In many situations it is then easy to consider bankruptcy, but this is not a good option for anyone that wants to maintain any semblance of credit.

Instead, it is a lot better for you to look for options like payday loan consolidation. By getting loans consolidated, it is possible to pay them all to one single place with a lower interest rate over a longer period of time. This can typically be useful for people that have many loans to many different places and need the help of a professional to get rid of the debt for them.

The consolidation experts often have time in the industry already, which is why many of them are so eager to help you out. They have put in their time to the industry and they know how hard it can be to get the things done that you are looking for. I general terms, they are people that know the industry inside and out and didn’t really like how they were treating people!

With their connections, you can actually get rid of your payday loan debt and even if it takes a while, you will have paid a lot less overall. It will also be fine for most people to get a loan afterwards if there is an emergency and payment is needed at a slower rate.

Either way, consolidating payday loans is a much better way of doing things than the method of bankruptcy which can cost you down the line.

Return of the Payday Loan

Written by David Schmidt. Posted in debt

Over the past decade the fluctuations for payday loans has been back and forth depending on the level of public interest and outcry. A lot of people think that the payday loan industry is evil and getting many people ensnared in debt in order to take advantage. Many lawmakers take these issues seriously and try to make a difference by regulating certain aspects. The only unfortunate aspect is that the people who are trying to utilize the payday loans in order to survive sometimes fight back as well.

In some northern states, the payday loan industry and those who use the funds are fighting back. Pennsylvania has labeled payday lending as predatory, but a new bill could legalize the industry completely. Even though people are using certain companies for payday lending already, getting additional funds in the way of a payday loan company is a big change for people of PA.

Power and Money in Government

One of the biggest reasons why the payday loan industry has been able to come and go is because of how much influence and money they have for the local governments. A lot of people dislike what is going on with payday lending and it is important to consider the repercussions of public opinion on the local governments. However, when the public opinion cools down a bit, the money can flow back to the government and change whatever needs to be altered.

When it comes to the Pennsylvania state government, the money has flowed back into this most recent bill so that they could allow for payday lending in a legal fashion within the state. Even though many other states already allow it, Pennsylvania is one of those that does not. Making sure that you have the right kind of loan could save your life, but these companies should not be able to alter the law in such a way!

Payday Lending Companies in PA Today

A large chain of payday lending is called ACE Cash Express. They typically offer payday loans and similar services, but because they are illegal in PA, they are forced to do other things. Namely, they are forced to sell money orders, process bill payments and a few other services as well. Altogether, it does not net them all that much money and it can’t help people in the way that they want to be helped.

However, this new bill can make it legal for ACE Cash Express to finally partake in some of the services that they would like to be offering. The most profitable of these is obviously payday lending where they can make high margins without worrying much about the cost.

Since 2005 companies have been pushing to bring back the payday lending as best as possible. It does not always happen but the money they have at their disposal makes it a lot easier for them to be successful.

Collection Agencies in Payday Lending

Written by David Schmidt. Posted in Debt Collectors

There are a lot of questionable practices when it comes to the payday loan industry. Most people who are worried about whether they are going to be able to get rid of their loan problems do not consider what may come as a result if they do not. Not only will they have the payday loan trap to worry about, but there are collection agencies that can be a real hassle to deal with. Many people in the industry are questioning the practices of the collection agencies and even the payday loan companies that hand over personal information and data to get them to help.

Many legislatures are bringing up this issue as a debatable practice that should be taken away if at all possible. Some of the people who are working with the collection agencies claim they are just providing a service to try to get money, but often the hassle is not well or tactfully done and just creates a range of problems for those who are involved.

Personal Info and Collection Agencies

One of the biggest differences within the payday loan industry and the payday loan consolidation industry is how the money is retrieved. With a payday loan consolidator, it is easy to speak to a single person who is not only more friendly, but a lot more willing to discuss things with you and have a good conversation about the topics you need help on.

Comparing that to a collection agency, most people will see a huge difference. These collection agencies have one thing in mind and that is to get the money that you owe so that they can improve their numbers and get paid by the payday loan companies.

Often the payday loan companies will hand over a lot of personal information including employment, household, and even direct bank account access in some situations. The debt attorney in Stamford, Connecticut known as the “fair debt attorney” says that the collection agencies are ruthless. If you have payday loans that are late then you know exactly how aggressive these agencies can be.

Regulation of Debt Collection

One of the things that many consumers and the public are clamoring for is a change to the laws that allow people to get bothered by debt collectors on such a huge scale. So many people are faced with problems from a debt collector all the time and there are many who just don’t have the time or patience to deal with it for very long. It is natural that the regulation of the debt would be difficult and not welcomed by all (especially those who need it), but the laws against debt collectors would be universally loved.

Make sure you read about the fair debt collections act and what lenders are allowed to do and not allowed to do so you know your rights.

Why Payday Lending Hurts Economies

Written by David Schmidt. Posted in debt

Economy and Payday LoansThere are a lot of professional economists that spend a lot of time looking at trends and how different things can influence society and a certain culture. For example, when it comes to payday loan debt of the populace, some people have been able to take this data and extrapolate with other data in order to see the effect on the economy. Rather than seeing just the taxes that are paid by payday loan companies and considering it a positive, these economists analyze aspects of the loans with sociologists, anthropologists and many others in order to find out the true cost for the economy.

Unfortunately for payday loan companies, it seems as though the net cost for a lot of the state economies in the southern United States is millions of dollars in the red. That means there are several companies paying a lot of money in taxes, but it still has a negative net effect on the economy as a whole. How is it possible that such a system is occurring?

Payday Loan Costs to Society

One of the major costs that payday loan companies come with is the reduced spending on goods elsewhere. Consumer goods are a large part of the United States economy and domestic consumption is a huge issue that many economists look at. When it comes to things like buying food and groceries and other supplies, payday loans can really kill the consumption. Another key point to this equation is the fact that many of the lower class and urban poor are the ones that spend the most as a proportion of their total income. Many of them spend whatever money they have on consumer items rather than saving like wealthier people do.

Therefore, the people who are so poor and typically spend a lot of money are instead paying millions of dollars cumulatively to the payday loan companies who are cashing in on their debt. For many of the businesses and restaurants in those areas, this is hurting big time. Economists think that by putting a cap on the interest rates that payday loans are allowed to charge, it can have a big impact on the way that people continue their lives.

Hopefully people who are trying to get out of payday loan debt will realize that they can use a payday loan consolidation expert to their advantage. These experts know their way around the industry and may have even worked in it for a while. They can help you to better understand what you need to do in order to get through the tough times that you might be facing.

In general, it is very difficult to calculate the exact cost of the payday loan companies on a society, but it is a good exercise to figure it out and make a difference in the way our modern American culture is running in the future.

If you ever find yourself in need of money during a desperate time, make sure you find out exactly how much interest you will be paying. More importantly, can you afford to pay this loan back quickly?

Idaho Payday Loan Bill

Written by David Schmidt. Posted in Legislation

Many bills pass through state and national legislators on a weekly basis, but few of them are as heavily contested as the recent Idaho contest in the house of representatives. The bill has many opponents, but it managed to pass 35 to 34 in the most recent contest.

The bill itself is an interesting piece of legislation that once again puts questions into play about the quality of payday lending in the United States. Each state is trying to deal with the payday loan industry in different ways and it is important to keep up the pressure to come up with something that benefits everyone involved.

Idaho’s Payday Loan Bill

The new payday loan bill does a few things for common people who are trying to get payday loans. First of all, it will limit the size and allows borrowers to get interest-free payment plans as well. There are many problems with the bill as many legislators have openly voiced. For one thing, having an interest free payment plan is wildly hard to regulate. Those who are able to receive them are not always accepted and many applicants that should be rejected are not.

Overall, there are also issues with the way that interest rates are capped with the bill. People who are trying to make a living running a payday loan company will have a much harder time making that happen with the new caps on the payday loan amounts. Making sure that there are no high fees will make it hard for payday lending companies to operate at all.

What This Means for States

This means a few things for the people who are trying to incorporate new laws into the state legislation. Most people who are trying to incorporate these laws across the country are looking to other states to see what might happen as a result. For states that are looking at Idaho, they are seeing how unfortunate it might be to have these caps as real laws.

The people are obviously crying for support when it comes to getting payday lending capped, but that doesn’t mean that everyone is so happy. Many people feel betrayed in the business world because a fundamental freedom has been taken away. Given the situation, it is easy to see how the effects might be felt in many states around Idaho and the nation as well.

States will be skeptical about all kinds of payday lending options, but there are few real choices in many cases. State legislation has not fully passed in Idaho, but the fact that the House has allowed this bill to pass may give some indication about the future of payday lending in the country.

As more people get into this type of debt, there are going to be higher regulations a well. Nonetheless, it is important to consider the different issues related to payday lending that might alter your own interest in getting this type of loan.

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