Do Microcredit Loans Work?

Written by David Schmidt. Posted in Payday Loan Debt

There are many people asking the same question about these things, “Do microcredit loans work?” The answer is yes they used to work wonders when they were first brought to market and no, not anymore though.  People haven taken advantage of them and ended up borrowing more than they can pay back.

When used for what they were originally designed for they had a great track record but companies have found ways to turn a good thing into another drain on the poor and disadvantaged.

Original Micro Credit Loans

These loans were designed to support entrepreneurship and alleviate poverty. They are basically small low interest loans given to the poor. If you were to participate in one of these loans you would have a 95% success rate in paying the loan back and actually making money using the loan for entrepreneurial ventures. When a person paid back these loans they were able to borrow more money. So you built a credit system with the lenders.

Micro Credit Lending

Have You Received a Micro Credit Loan?

You would borrow in groups and invest the monies borrowed into your own businesses. Many a poor man created a successful business by starting out using micro credit loans.

Modern Day Micro Credit Loans

Modern day microcredit loans have taken a very predictable twist and are now being compared to payday loans. They have increased their interest up to 20% and many are now being backed by independent banks who are only interested in their bottom line.

Originally they were backed by non profits and the government.

They prey on the poor and disadvantaged and are quickly becoming another avenue for the loan sharks out there to get a big bite out of the poor and disadvantaged.

With many states cracking down and outlawing payday loans, this type of loan could grow into epidemic levels quite quickly.

Summary

We here at Eliminate Payday Loan Debt highly recommend that people stay away from these and any other high interest short term loans  if you can. Now not only do people need to worry about getting caught in the payday loan trap, they are now needing to watch out for the micro credit loan trap too.

If you have out of control debt we can help. Give us a call toll free at 1.877.734.6700, or fill out our form by clicking here for a free no obligation quote on how we can help you!

Anytime something is too easy, it is usually going to cost you in the long run. I hope this information helps you make wise choices when choosing who you do business with when borrowing money!

 

Wonga Profits Soar

Written by David Schmidt. Posted in Payday Loan Debt

Austerity measures are in effect in many parts of the world and the United Kingdom is one of the hardest hit regions. Although the long term fiscal situation looks better as a result of austerity, the short term is often totally destroyed. There are some companies that can do very well within such conditions, which is why the payday lender Wonga is profiting so much lately. As of early September, the Wonga profits were said to have reached nearly 2-3 million dollars per week. Although the United Kingdom market is fairly small compared to the United States, on a per person basis they have more debt.

UK payday loans

Just like the US payday lenders have taken root and many people are getting into the trap

Wonga and Payday Lending

Wonga has been in the news a lot lately for a number of reasons. First, it is obvious that they are one of the main targets of the libraries in Nottingham and other places across the United Kingdom. The libraries have banned the use of the public computers in order to access these websites. Wonga was among the 190 or so websites that have been banned.

However, the bigger news for Wonga is not that they were banned from some libraries, but that they have been able to make profits that are many millions of times what other small lenders are able to create. That means they are using a wide variety of methods, including some questionable marketing, in order to make their millions every single week.

The Wonga company has reportedly only been able to make such profits within a week for the simple reason that payday loans are soaring.

Payday Lending in UK and Wonga

The payday lending industry has grown tremendously in the past few years largely due to the austerity measures already explained. Still, that does not explain how it is possible for companies like Wonga to be making nearly 2-3 million dollars (1.2 million pounds) in a week.

The real truth is that the number of payday loans has soared by over 70% in the past year. People who need money are not able to go to the government, which is also strapped for cash, but instead are forced to go to these lenders.

At the end of the day, the industry is able to approve tens of thousands of loans every single day just because they are facing such austerity measures at home. The Wonga number approves 10,400 loans every day and is being accused of profiting from the misery of the poor.

However you view the companies in the United Kingdom, the payday lending industry has definitely been able to do quite well from a financial perspective. Just like here in the United States. There are so many variables involved with the austerity aspects of the British system that it is hard to say whether that is a direct correlating factor, but a 70% increase would indicate that it has something to do with it. Wonga is taking advantage and without proper legislation to protect people from predatory lending, it could get even worse for the people in the United Kingdom.

Payday Loans For Christmas

Written by David Schmidt. Posted in Payday Loan Debt

payday loans at Xmas

When Christmas comes around be careful about borrowing money

Yes, it is that time of year, and hopefully by sharing a bit of knowledge about this business people will not be getting payday loans for Christmas!

This is the time when all the talk of easy cash and money in your account within 24 hours sure sounds good, but let’s put a bit of a reality twist into this and see what it really looks like,

The quick sell

What you hear when these companies advertise for the holidays is how you will have enough money to get those gifts you need, and maybe a bit left over to treat yourself and your significant other with a bit of luxury at Christmas that you normally would not be able to afford.

This all sounds great, and you only have to make one payment on your next payday. It is a very hard deal to ignore, especially if your credit is less than perfect and getting a conventional loan is out of the question.

But make no mistake about it, it usually never goes this way. Let’s take a look at how the real outcome plays out.

The reality

What usually happens more times than not is the customer has borrowed more than they can pay back, and they end up rolling the loan over. Before you know it, their next payday rolls around and again they do not have enough to even pay down on the loan, so they roll it over again or borrow more to make the payments. This creates a vicious cycle and turns into a trap.

This happens on average 4 to 5 times, and at the tune of about $150.00 minimum a roll over they soon become trapped. Then their bank account becomes in the negative and the bank charges begin to build up and well, you can guess where this ends up.

If the customer is smart at this point they will stop all payments and contact a payday loan consolidation company. By now they are in way too deep to handle this by themselves and they are in need of some serious help.

In Conclusion

Hopefully the above information will help clarify why we should never take these loans out for any reason, and what you can do if you do get trapped.

If you are caught in the payday loan trap and need help give us a call toll free at 877-734-6700 or fill out the form on this site for a free no obligation quote on how we can help you.

Do yourself a favor and make sure you do not end up paying for those Christmas gifts for the next year or longer!  If you can afford to buy presents then by all means do so but if you have to go into debt to get gifts be very careful.

Are Payday Loan Debt Consolidation Companies a Scam?

Written by David Schmidt. Posted in Payday Loan Debt

payday loan debt consolidation company

We are a family owned payday loan consolidation company.

The question going around the payday loan news sources lately is “Are payday loan consolidation companies a scam?” The truth is many can be just that. So many companies out there use the credit card debt consolidation model as their way of doing this type of service and that isn’t the right way to do it. Most companies will hold onto client money for months at a time and build up a fund. If lenders aren’t being handled and dealt with immediately it creates more problems and the clients suffer for it.

Seems whenever people are in trouble with money it alerts the sharks out there that are just waiting to benefit on peoples misfortunes.

Scams or good business?

There are many companies that will promise you lower or no more interest rates, elimination of legal issues, and low payments. They will promise anything to get your business, but in reality they are just out to get your money.

Several non profit consolidation companies, like the National Consumer Council and Debt Management Foundation Services, have been caught investing in for profit companies.

Many consumers are finding themselves in more debt than they started out with, and damage to credit ratings is also a major result in doing business with these fraudulent companies.

What to watch out for

There are ways of protecting yourself when researching consolidation companies. Here are a few tips that can help make your choice a bit safer.

  1.  Be mindful of non profits and companies that hold your money for months at a time before paying paying lenders. Make sure you research these companies.
  2.  Always read all the fine print.
  3.  An honest company will supply references and have good reviews from customers who have used their services. Check them out!
  4. A good payday loan consolidation company will charge you a one time fee, and all of its intentions will be clearly listed on its contracts.
  5.  Watch out and avoid hidden fees. Ask for the complete cost.

Summary

There are good consolidation companies that will deliver on what they promise, and we are one of them. We here at Eliminate Payday Loan Debt pride ourselves on being one of the oldest and most reliable companies in the industry.

If you are in trouble with payday loan debt and need help, call us  toll free at 877-734-6700 or fill out our form  for a free no obligation quote.

We will talk to you, discuss what we think would be your best options, and help you eliminate payday loan debt!

Don’t get caught up in the scams that have infested the loan industry, and make wise choices when it comes to working with your debt. Peace of mind is right around the corner with the right company!

 

UK Charter Demands New Payday Loan Rules

Written by David Schmidt. Posted in Payday Loan Debt

Payday loans are a hotly debated subject as many people already know. In both the United States and the United Kingdom, it is difficult to reconcile the incredible interest rates that some people are paying with the service that payday lenders are providing. As The Guardian reported recently, the most recent news from the UK is that a charter has demanded lending rules to become stricter in the country. This is on the back of several local moratoriums on payday lending in public locations. It is making life for the payday lenders very difficult, but there is a possibility of compromise.

Charter to Stop the Payday Loan Rip-Off

The new UK charter is aptly named the “charter to stop the payday loan rip-off”. It is created by staunch advocates of a payday loan free country and although this group does not have the power to shut them all down instantaneously, it can sway public opinion. Indeed, public opinion is already in favor of cutting the interest rates that payday lenders are allowed to charge for their services. Most of the time, the interest rates soar above 400% or more which causes more problems for people than benefits.

Even though there are plenty of people that love or need access to the quick money, it is not helping them in the long-run and is poor for the community as a whole. Impoverished people should be looking for modes of employment rather than using a cheap source of debt to fuel their livelihood. This is one of the main reasons the charter was formed in the United Kingdom in order to get rid of the payday lending companies altogether.

Clout, Power, and Payday Loans

Unfortunately for the charter, there is no way to end the “payday loan rip-off” from the United Kingdom completely. The biggest payday loan companies in the United Kingdom are well equipped to handle the political hailstorm that seems to be coming. Most of them have done a good job of meeting and befriending the contacts that they need to stay in business. More importantly, many of the largest banks in the world are seeing the profit in payday lending so they have purchased these nationwide companies for themselves.

The legal battle will most likely be a long one as the payday loan industry maintains a tight grip on the power supply while the peoples’ demands are being ignored. There are millions of people in the country who are crying out to stop the financial abuse of the poorest citizens. Even if they do not have much power, they are large in number and can sway the elections no matter what connections payday lending companies might have.

The battle in the United States is much like the United Kingdom, but it varies from state to state. Some places in the Northeast (such as New York) have been firm with payday lenders recently, but other states have showed no intent to restrict the use of these loans for the people who are in need of money. Only time will tell how payday lending in the US and UK turns out. But we are here to help anyone who really needs assistance in getting these loans paid back in a more affordable manner.

How to Start Eliminating Payday Loan Debt

Written by David Schmidt. Posted in Payday Loan Debt

Get out of debtThose who have decided that payday loan debt is weighing them down have got to put some effort into getting rid of their problems. Nobody is going to eliminate payday loans without putting in the hard work, but this article is going to help guide to towards the ultimate goal. Those who are interested in how to start eliminating payday loan debt can use this article as a guide for them to get debt free and make a change with their life.

How to Start Eliminating Payday Loan Debt Now

There are many ways to start eliminating your debts, but taking action immediately is the first step. The thing that should come first is to speak with a payday loan consolidator if you have multiple loans to many different lenders. These types of people are looking out for your well being and can negotiate in order to reduce your total monthly bill.

The payday loan consolidating professionals will be able to get your monthly bills reduced so that you are no longer spending all of your money on this. After you have spoken to a consolidator, you can start to do some belt tightening of your own. Make sure you are living in a location that is not costing too much in monthly rent. Then you can also take a look at transportation and living expenses. Try to “trim the fat” wherever it seems possible to do so.

Often, you will notice that transportation in a car can be expensive with modern gas prices. If you get the bus transportation option, you can save a lot of money and typically the money saved can be spent on paying off your bills every month. Furthermore, food costs are high so eat food that you buy from the store more often than you go out to eat. Paying for labor at a restaurant is not a good use of your money.

Anyone who is learning how to start eliminating payday loan debt can put hard work and dedication into the project in order to see results. However, it requires diligence in order to get rid of the debt with the help of a payday loan consolidation specialist.

Caps on Payday Loans

Written by David Schmidt. Posted in Payday Loan Debt

caps on  payday loan debtsThe United Kingdom is contemplating a plan that has been devised by many experts already. The idea is to cap the payday loan interest rates in an effort to help people from excessive debt, the payday loan trap and other problems that can cripple life. Released on October 3rd, the news outlets were quick to seize on the economics of the problem. It would make sense that UK authorities want to cap the interest rates, but the method that want to do it is of contention among many experts.

Do Payday Loan Caps Work?

The biggest question that people have been asking after the news from the UK is whether or not the caps on payday loans actually work. For most people, the payday loan interest rate payments are excessively high, but still cover the risk. The cash advance lenders are unable to make money (and therefore unable to lend) if they are not able to charge as high as the market demands.

The risk that these companies take on as a result of the payday loans makes it very difficult to make money. They typically get paid back by only a small portion of the individuals that borrow money, which leads them to need a higher interest rate on those that do.

The payday loan cap has to be very well placed in order to work. Even then, it will kill some of the smaller companies that are not competitive. The cap will work to a degree for those who are trying to prevent excessive payday loan debt, but in the long run there are still many questions and concerns.

Long Run Payday Loan Debt

In the long run, there are many issues that regulators and business owners are worried about. The excessive interest rates will hurt citizens, but it is a need for many people. The politicians in the UK have obviously followed populist sentiment, which is in uproar after many payday lending companies have been shown to earn millions every day.

In any case, the people who are most worried about the payday loan cap are the companies themselves. They have a lot to lose and their competitiveness can be eroded with a move like a payday loan cap. There are many aspects of the cash advance business that are not moral, but offering money as the market demands it might help to save lives more often than most people think.

Grounded Payday Caps

There are many aspects of the cap on cash advances that people don’t like or find useful. Some even consider it highly dangerous to continue at the current pace. However, there are some grounded ways of capping loans in the UK that some governmental offices have already devised. The FCA has proposed tougher use of advertisement bans in order to help people in the country.

Such a move will not change the way that the lending companies do business, but it will change their deceptive practices that can engulf many citizens in debt. The FCA is pursuing this policy with vigor, but it is a matter of time before payday loan companies start to fight back. With the advertising ban itself there are grumbles, but a cap on interest rates will be an even bigger fight.

Western Sky Sued for High Interest Rates

Written by David Schmidt. Posted in Payday Loan Laws

The payday loan industry is well known for their exorbitant interest rates. Companies have long gotten away with charging these kinds of rates because people are in such need of money in certain emergency situations. With no other lender willing to take on such risk, the payday loan industry has been able to thrive. Some may consider them to be predatory practices, but most people just consider them to be useful for the poorest of people that need help. The government has stepped in as many times as necessary to help regulate the issuing of interest rates and payday loans, but recently they have stepped in even further. The Western Sky company has been sued for charging high interest rates that exceed 350%.

Western Sky Federal Lawsuit

As with many other payday loan lenders, the Western Sky company is based out of South Dakota and provides lending services to a wide variety of people across the country. Lately, they have been able to charge interest rates that exceeded 350%, which was too much for many federal prosecutors to handle. A lawsuit has been filed in mid August by a New York court. They consider the interest rates to be too high and often are not forgiving when it comes to these companies.

An analysis of some of the Western Sky terms and conditions has made its way to the New York prosecutors where they have been touted as one of the reasons for the lawsuit. For example, a loan of $10,000 that someone can get in a single day without any collateral can often cost up to $62,500 over the lifetime of the loan. These types of rates on such high dollar amounts can end up leaving residents with no money for decades.

What Will the Lawsuit Change?

One of the things that lawmakers and the public are hoping is that the lawsuit will change the way Western Sky and other lenders are forced to market themselves. They cannot continue to market themselves in such a deceitful way and more importantly, they cannot have fine print that ends up charging people such a high rate of interest.

The lawsuit will not be completed for many years, but the act of filing one from the New York court has serious implications for those who are involved in the payday loan industry. Many are hoping that the issue gets resolved quickly and quietly, but the general public is a little more interested in the outcome.

With so many people needing financial assistance with this terrible economy, it is no wonder that people are looking forward to hearing the result of this lawsuit. There are many reasons to be concerned about the payday loan industry, but whether the government can force them to provide a service that the market is demanding is another story. It remains to be seen whether or not it is going to be valuable for the government to make such a move on the Western Sky payday loan company in South Dakota.

Payday Loan Collectors in Hot Water

Written by David Schmidt. Posted in Payday Loan Laws

New York has been the location of much turmoil in the payday loan industry as of late. First, there were lawsuits handed to the larger payday loan companies operating out of South Dakota. The interest rates were considered to be excessive by the New York district attorney, which resulted in the pending lawsuit. While that is still being discussed in court, a new problem has arisen in the state. Some payday loan collectors in the Erie County have been ordered to pay hundreds of thousands of dollars in restitution to what the state considers victims of excess.

Payday Loan Laws in New York

Prosecutors in a state court have identified five separate payday loan companies as not following proper loaning laws. On September 30th, Erie County moved forward with punishing the five different companies by forcing them to pay upwards of $300 thousand dollars in restitution payments. Those who have been victim of high interest rates that were considered excessive by the state are receiving a portion of those funds.

It is as much a punishment as a restitution procedure. Those companies have far more money than they are forced to release with this injunction, but it is a symbolic gesture in a state that has been known for hard-nosed perseverance against the payday loan industry.

Moving Forward with Cash Advance Lending

The state of New York has brought these restitution payments on payday loan companies as a sign of the things to come. Only a month ago, the state was pursuing some of the largest tribal payday lenders in the country in order to make them stop lending in New York. The same trend is being continued and although prosecutors have come to many deals with the payday industry, it seems that public opinion is running thin.

There are millions of New Yorkers who find themselves in debt because of the payday loan industry. Most of them are poorer citizens, but in a Democratic state, it is no wonder that the cash advance industry is taking a beating. The excessive interest rates that are allowed in the 29 or so unregulated states are not welcomed in New York, which brings many problems.

Even though the poor are reliant on payday lenders in some situations, the excessive payday interest rates are causing people significant problems across the state. There is no telling whether the state will start to ban the use of payday loans outright or just place even more restrictions on them. Considering how many people utilize these loans, it would be a wonder if they did decide to stop payday lending for good.

Erie County Payday Lending

How this will impact Erie County is even harder to debate for onlookers. The state has shown significant muscle in working with payday loan companies, but they have had moments of weakness as well. It is unknown how the people of Erie County will react to this news. The restitution might make them feel justified in their ongoing use of cash advance lending.

Other people think the news and blowback might have a positive influence on their borrowing practices. If this is the case, the state of New York might be the microcosm for the rest of the country. If the laws and users band together, it is possible to reduce the profitability of the payday loan industry forever.

Western Sky Not Welcome in New York

Written by David Schmidt. Posted in Payday Loan Laws

Wetern Sky LoansNew York regulators have determined that Western Sky, along with a wide variety of associated companies, are no longer welcome in their state. One of the great things about the American federal system is that states are allowed to make such decisions and claims when they would like. Although the federal government has not brought charges against Western Sky in order to stop them from operating any longer, the state of New York is hoping to get rid of their influence over the state’s residents.

Lending in New York

According to the lawsuit filed by New York prosecutors, since the year 2010 Western Sky has managed to accumulate nearly 18,000 loans to individuals in the state. The loans for these 18,000 individuals has reached the mark of $38 million in principal. Even though this seems like a lot of money, the New York prosecutors are quick to point out that this investment will raise them nearly $185 million in outstanding loans and finance charges. This type of profit on the backs of hard working New York residents is exactly what the government is trying to go after.

It isn’t just Western Sky that is not being welcomed in New York. There are many other associated companies where the money is coming from that makes it hard for people to stomach their dealings. The CashCall Inc. and WS Funding LLC are both recognized in the lawsuit as parties within this ring. Although Cash Call is just a servicer or Western Sky’s loans.

What is the Western Sky Lawsuit Going to Do?

The Western Sky lawsuit offers an opportunity for regulators to get rid of the company in their state. It sets precedence that it is possible for state regulators to want lending practices that do not exceed a certain limit. Once the case is resolved, it will lead to a wider range of denials and prohibitions in other states as well.

Given the amount of money that the Western Sky company has loaned to New York individuals, it makes sense that they would fight this to the best of their abilities. Even with all of their lawyers and financial might, it may not be enough to stop the public opinion in New York. Most people are fed up with predatory lending in the New York area after the Mafia had such dealings with people throughout the past few decades. New York payday loan laws are clear regarding these types of cash advances.

Payday Loan Industry Fallout

The fallout from the payday loan industry is nothing new. People have been having problems with payday loans for a long time and it is no wonder that there are so many potential lawsuits about to be filed. Most of the time, it is possible for payday loan companies to get out of hot water by showing that they are providing a service with risk that nobody else is willing to take. Either way, the Western Sky lawsuit is going to be something that is talked about in legal history for a long time to come and it may not be in the best interests of the payday loan industry.

Help Pay Off Payday Loans

Written by David Schmidt. Posted in Payday Loan Debt

If you are looking for a way to get out of payday loan debt, there is a couple of simple solutions. Although they may be changing as the political tide changes, there is still the possibility that you will need to help pay off payday loans with a consolidator. These types of people can provide the kind of support that you need in order to get back on your feet and stop worrying about how exactly this type of problem will change your life. As you may well know, the economy is not getting any better and if you cannot pay off your loans then you are probably going to have a very hard time with your future.

Why Help Pay Off Payday Loans

One of the main reasons you should help pay off payday loans is because you will be seriously hassled if you do not. The companies that lend you money will be able to call you, visit you, and even though it is not legal, they will threaten you as well. These kinds of things are all very stressful and if you are in debt to several different debtors then you will find yourself in a position that you would rather not be in. Even if you can consistently avoid getting into problems with them, you will not be able to avoid the stresses that are attached.

Combating this problem is actually rather easy from the standpoint of using a consolidator to help pay off payday loans. These people have trained for years in the industry to help men and women like you get the most money left in their pocket. They will usually help pay off payday loans by speaking to representatives that they are already familiar with at the payday loan company. After they do this they will most likely have a consolidated lump sum that you can pay off in shorter amounts to a single lender over the course of many months. More importantly, the interest rates on these kind of loans are also very cheap.

If you are looking to help pay off payday loans, then you need to find a legitimate consolidator who is willing to work with you to get your debts into one set so they can be paid off in a short period of time rather than being hassled constantly by the many companies that you may still owe some money to.

How to Get Rid of a Payday Loan

Written by David Schmidt. Posted in Payday Loan Debt

Get rid of payday loan debt

Getting rid of payday loan debt is tough but if you use a real payday loan consolidation firm you can make getting out of this trap much easier

Millions of people are struggling with payday loan debt in the United States due to the terrible economy. With conditions worsening every single day, there are even more families affected by the lack of jobs. Many have turned to payday loans, which charge incredibly high interest rates and can lead to a cycle of unending debt. There are many who want to learn how to get rid of a payday loan, but do not know the steps required to do so. It is important to learn how to get rid of a payday loan very quickly if you want to save yourself from even more losses due to the interest rates. This article will give you a step-by-step guide to get rid of that payday loan debt.

How to Get Rid of a Payday Loan With a Consolidator

The first step that you need to take in order to get out of payday loan debt is call an experienced payday loan consolidator as soon as possible. These companies and individuals often have the expertise needed to negotiate on your behalf in order to get a much lower rate. Many payday loan lenders know that they may never get any of their money back if they are not more lenient about interest rates. In some cases, the interest rates on a loan can be completely slashed while only the main loan must be repaid.

For people who have multiple payday loans to different companies, this is an incredibly important feature as it will reduce the debt burden considerably. More importantly, the payday loan consolidator will usually take care of the loan in order to start the consolidation for your payment to them.

Getting Rid of a Payday Loan by Saving

The next step important step in getting rid of payday loan debt is to do some serious introspective soul searching about your own spending habits. There are a number of reasons why you may be in payday loan debt, but excessive spending is most likely a huge cause for concern. If you are eating at restaurants, no matter how cheap, you are most likely spending too much money. If you want to learn how to get rid of a payday loan, you need to first learn how to save money.

You can do this by going to the grocery store in order to fill all of your food needs. Buy only the essentials, such as bread, eggs, fruits, and vegetables, and avoid any other sodas or foods that might be harmful for your budget. Using coupons can also be another way of saving money that you can use in order to pay off the loans much quicker.

Finally, try to cut out all of the entertainment that you spend money on throughout the month. This might mean that you stop drinking alcohol, avoid movie theaters, or any other type of pleasure that is costing you money. It is time to make sacrifices in order to get your payday loan debt taken care of immediately.

Tennessee Payday Loan Laws

Written by David Schmidt. Posted in Payday Loan Laws

TN payday loan lawsStuck in the middle of the United States, Tennessee often gets forgotten. While it isn’t the deep south, New England, or the rust belt, it is a state that is unique in the country. The centers of Nashville and Memphis are some of the economic heartlands of the region and even though they lack a stereotypical geographic location, they are an important part of the country. As with most states, the Tennessee economy has been hurt by the economic recession. Many have started taking out payday loans, which is crushing families under a mountain of debt. Tennessee payday loan laws have been developed in order to directly combat this problem.

Tennessee Payday Loan Laws and Interest Rates

As far as the interest rates are concerned, Tennessee has a poor record of protecting citizens from the big companies that want to lend them into the payday loan trap. The Tennessee payday loan laws actually permit some of the highest APR rates on a $100 14- day loan than anyone else in the country. With rates of 459% it is hard for many citizens to take a small loan and pay it back quickly. For this reason it might be necessary for you to consider taking out loans some other way.

The Tennessee payday loan laws may be a function of the strong lending lobby that is in many of the states. Even though the annualized percentage rate for the loan is quite high, the industry can claim much higher if the free market allows it to. In that respect, the people of Tennessee are somewhat lucky.

Licensing and Tennessee Payday Loan Laws

Like other states, there are some penalties and restrictions when it comes to licensing services. Companies that try to lend money to people must abide by some of the registration and licensing laws that Tennessee has passed. Nonetheless, these laws are also somewhat lenient on the companies compared with the other states. The one and only state licensed lender is PayDayOne, which has a very good track record in the state and has done its job well.

If you are in the state of Tennessee and you need to borrow money as quickly as possible then maybe you have no choice. However, Tennessee payday loan laws are not exactly the easiest things to work with. Often they do not always have the best interest of the customer in mind compared with other states.

State Payday Loan Laws

Written by David Schmidt. Posted in Payday Loan Laws

payday loan laws by state

Find the latest laws regarding payday loans right here.

Like many laws in the United States of America, payday loan laws vary from state to state. Each state passes regulations and bills that help to regulate the payday loan market in a way that is beneficial to them. Some states have lenient restrictions on payday loan laws in order to encourage free market forces to work, while others prefer to rein in predatory lending with more oversight. Knowing the state payday loan laws where you life is an important way to protect yourself from falling victim to predatory lending or debt that might make your life unpleasant. Below we will offer a few tips that will help you to research state payday loan laws and links to information on your state.

General State Payday Loan Laws

There are a number of state regulations that have implications for how payday lenders work in each state, but there are a few similarities you should be aware of. Most states have a minimum and maximum level for the term of the loan. Some states offer a minimum of 5 days while others offer 10, but these rules will change the way you do business with payday lenders based on your state. Another indicator you should look for is the minimum and maximum amount that a lender can give. In some cases the payday loan lender can only give $500 to a borrower, while in other cases the laws at set at a percentage of the gross monthly income of the borrower. Each state has a different regulation. In fact, some states ban payday loans altogether.

Fees and finance charges are another commonly regulated aspect of payday loans. In order to prevent incredibly high interest rates, many states set an upper cap on the amount that payday lending companies can charge. Although lobbying in each state has made it possible to still extract over 400% ARP, this is still an upper limit that could be much worse if the free market could continue.

Licensing and Liabilities for Payday Lenders

Consumers also have to make sure that they realize which online payday loan lenders are licensed and registered with the state that they reside. Each state usually only has a few online payday lenders (with a few exceptions), so it is imperative that you determine whether or not an online company is acting illegally by lending you money. In many cases this can lead to extremely high interest rates that land you in thousands of dollars of debt for only a small loan. Do not fall victim to these types of shady practices. Instead, make sure all of the laws are being followed with your storefront or online payday lenders.

As each state is different, we have compiled a list for you to consult every time you have questions about payday lending laws in your state. Hopefully it will provide useful for you to better understand your rights and protect yourself from predatory lending that has already hurt so many individuals and families.

Alabama Payday Loan Laws

California Payday Loan Laws

Colorado Payday Loan Laws

Florida Payday Loan Laws

Illinois Payday Loan Laws

Indiana Payday Loan Laws

Massachusetts Payday Loan Laws

Nevada Payday Loan Laws

New York Payday Loan Laws

North Carolina Payday Loan Laws

Ohio Payday Loan Laws

Oklahoma Payday Loan Laws

Oregon Payday Loan Laws

Pennsylvania Payday Loan Laws

South Carolina Payday Loan Laws

Tennessee Payday Loan Laws

Texas Payday Loan Laws

Utah Payday Loan Laws

Virginia Payday Loan Laws

Alabama Payday Loan Laws – Get The Facts You Need

Written by David Schmidt. Posted in Payday Loan Laws

alabama payday lender laws

Do you have too many payday loans? Really read through our site and see how you can get real help now.

Rural communities across the southern United States have been particularly troubled with the aspects of globalization that make agriculture less lucrative. States like Alabama have long since seen the glory days of the cotton plantations fade, which means that a sizable portion of the population are in need of work and money. Payday loans have quickly become a way for citizens to fill income gaps, but these are only temporary fixes for problems that are far more serious. Some of the new Alabama payday loan laws are great for protecting citizens, but there are others that are unique and open to interpretation. You must make the decision for yourself whether or not the Alabama payday loan laws actually protect you or not.

Terms and Loans by Alabama Payday Loan Laws

As with many states, Alabama has set terms and loan amounts that lenders are allowed to offer the borrower. The laws in Alabama are about on average with the rest of the nation and is actually quite similar to the majority. The state only allows $500 payday loans to be given out to borrowers in order to reduce the impacts when they cannot pay loans. However, one difference is the minimum and maximum term difference that makes borrowing more flexible. Borrowers have between 10 – 31 days to get the loan finished, which gives a flexibility that helps both the consumer and the lender.

Still, the rate under Alabama payday loan laws is quite good compared to others. The maximum charge is 17.5% on a loan of $100, which is higher than some, but quite low compared with Tennessee and some other states nearby.

Licensing and Alabama Payday Loan Laws

Another key indicator of the protection afforded to consumers is the licensing aspect that any state requires for lenders. Online lenders are especially required to get the proper licensing information in order or else they cannot legally operate in the state. The state of Alabama has legally licensed “CashCentral,” “CheckCity,” and “ChecknGo” in order to make sure that these companies follow specific guidelines and restrictions.

If you are trying to get an online loan from another site then you must realize they are not following Alabama payday loan laws and this is therefore illegal. Make sure that you are protecting yourself from predatory lenders that are not licensed in the state that you are living so that you do not have extremely high fees.

GET YOUR FREE CONSULTATION NOW!

Payday Loan Help

We Deal with the Payday Lenders For You And Eliminate The High Interest and Fees!

Get a Free Quote Below or Call Us Now at 877-734-6700