Cash Payday Loan

Cash payday loan industry is mired in conflict. Should we continue allowing the cash payday loan lender to operate with the fee schedules and unlimited rollovers or is it time to enforce change?

Cash Payday Loan -- The Great Divide

Are you familiar with the cash payday loan? Legislators and advocacy groups have raised an inquisitive eyebrow and begun the heated debate on the need for more enforcement on the cash payday loan industry.

The cash payday loan divide

No matter what side of the equation you stand on, the simple fact that is blatantly obvious is that there needs to be more enforced regulation on this industry. Currently, cash payday loan providers get around ceilings on limits by charging fees, rather than generating interest. Through luring borrowers to continue rolling over payment, they end up paying back much more than the original amount of the loan.

Cash payday loan lenders and fees

When cash payday loan fees end up being over 20% of the amount borrowed, many loan recipients are unable to repay this cash, along with the fee on the designated repayment day. Each time this happens, the recipient must pay another renewal fee, as well as fall vulnerable to other charges. Consequentially, it is not uncommon for the borrower to pay anywhere from 300% to 1,000%. Keep this in mind when applying. Don't welch on the very important job of doing the math to figure out what percentage you are being charged.

Cash payday loan solution?

Many legislators have serious issues with the predatory cash payday loan lender, exploiting the hard-working wage-earner-to-lower-middle-class salaried employee demographic that relies on these expensive advances. If some had it their way, they'd make the entire industry obsolete. Proponents of payday loans say that forbidding these lenders to provide the service they do entirely is not the solution as many consumers are actually able to survive some harrowing financial situations - all expenses considered - through payday lenders. Finding a compromise, instead, could be a reasonable solution. Perhaps, new rules that regulate fees and placing limits on rollovers could lead to a healthy common ground between lender and borrower alike.

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