Lately there has been a lot of talk of payday advance loans in the media. Some people are for them, some against, but as always, the government is caught in the middle. Learn more today.
The Complaints about payday advance loans
Those who complain do so because they are angry about government regulations. As of now the government does not regulate how much money you can get and how much loan companies can charge for giving this money out. People only get payday advance loans when they have no other options – so supply and demand are not really relevant in this situation. If loan companies all increase the amount they charge customers per dollar they borrow customers will have no choice but continue to pay the price. This is also common with online payday loans. The service is convenient, but is mainly controlled by the lenders.
As rates appear today, customers are really losing money. Still that doesn’t stop people from taking the loans because they need the money. The so-called “no faxing payday loans” policies of many institutions make these fast cash transfers easier than ever. The government needs to install regulatory prices for these loans so that loan companies will not drive each other’s prices up. People who get payday loans are already in financial distress – we shouldn’t force them into worse debt.
Arguments for payday advance loans
Those who are payday advance loans argue that those getting them are in control of their decision to get the loan. Many think these loans have saved those in severe debt troubles. There are many editorials about the perils of instant payday loans.
“The personal loans industry has come to the rescue of mothers with sick children, people with broken down cars, teachers who are paid only once a month and customers from all walks of life who want to avoid bounced check fees, late credit card payments, late car payments and late mortgage payment charges.”
– Richard Rawle, The Desert News (UT), Opinion Editorial, July 11, 2002
Payday advance loans belief and theory
People like Rawle believe that these payday advance loans are helping all types of people. But he does not address the fact that these people are still being penalized for getting paid only once a month or having car trouble by having to pay these high fees. Though the payday advance loans help them initially, these teachers and mother he speaks of still are victims of the economics of hardship. This is important.
Still the issue of payday advance loans is a controversial one. Many urge the government to establish regulations on payday advance charges, but the process, like always, is a slow one. For now payday loans online have virtually no regulation- so if you do get one shop around for the best rates. And be careful. How can you be careful? You can research prospective cheap payday loans providers at the site of the Better Business Bureau. If there are no complaints, you may proceed. But be sure your bad credit payday loans providers answer your questions directly – especially with regard to how much you can expect the fast payday loans fee to be.