Advocacy group and payday loans

Consumers often feel that no one is looking out for them, but a consumer advocacy group belied this belief by spending more than $100,000 in the first quarter of this year to fight against what they labeled predatory payday loans and credit card fees.

The Center for Responsible Lending spent $130,000 on lobbying efforts to persuade the federal government to pass stricter regulations against the credit card and payday lending industries. The advocacy group, which is based in Durham, NC, also lobbied the federal government regarding the creation of a new consumer financial protection agency.

The advocacy group didn’t stop with Congress, either, according to the Associated Press story. The Center for Responsible Lending lobbied the U.S. Treasury Department, the Federal Reserve, and the Federal Deposit Insurance Corp.

That $130,000 seems like a lot of money spent to combat payday loans and credit card fees, but it’s actually less than the $180,000 that the group spent in the first quarter. It’s lower, too, than the $175,000 that it spend in the fourth quarter of last year.

It’s little surprise, though, that the group has spent as much as it has. Both credit card fees and payday loans receive regular criticism from consumer advocates and legislators. Critics say that payday lenders charge interest rates that can sometimes be as high as 400 percent, and that credit card companies often artfully mask their credit card fees until unwary cardholders accidentally rack them up.

Critics say that payday lenders, especially, earn their livings by preying on consumers who are desperate enough that they’re willing to overlook the high interest rates and fees that they’re paying for these short-term loans.

Of course, there’s always another side to every argument. In this case, supporters of payday loans say that they are necessary products. Some consumers need short-term infusions of cash. By taking out payday loans, they’re able to keep their lights on, their phone service active, or their car’s fuel tank filled.

The debate over both payday loans and credit card fees won’t be going away anytime soon. In fact, legislators across the country are either drafting or passing new legislation designed to curtail the interest rates and fees that payday lenders or credit card companies can charge. You can bet that for every Center for Responsible Lending, there’s an even more powerful lobbyist working for the credit card companies and payday lenders.…

The state of Kentucky tries to limit payday loans

Payday loans not only hurt families, they also hurt the economy. Payday loans might not be the cause of the current state of the economy, but they are putting more and more families further into debt. Luckily for consumers, the Kentucky state legislature is embroiled in a debate to help consumers by imposing limits to the amount of fees providers of payday loans can charge.

With the passing of House Bill 444, the state of Kentucky has taken the first steps to protecting consumers against outrageous fees and interest charges on pay day loans. The new law also establishes a moratorium on companies wanting to open new businesses that provide payday loans that will last ten years.

In some ways quick payday loans can help consumers get emergency loans, but far too often consumers ended up taking out multiple payday loans just to cover another. This cycle causes them to spiral further into debt with no hope of ever getting out, and many advocates’ groups in Kentucky estimate that consumers in the state are spending upwards of 131 million dollars a year in fees and interest on payday loans.

This debate is guaranteed to continue for some time, because the Federal Government has begun looking into the problems associated with payday loans. The U.S. Senate has begun debating a bill that would create an interest rate cap of 36% on all loans, including payday loans.

There has also been some debate as to whether there should be a federal interest rate cap on all type of loans, including credit cards. If any of the proposed federal laws make it through the house and senate, the profitability of companies that provide payday loans will come into question. Currently many providers of payday loans are collecting triple digit interest rates, and in some cases as much as 1000% on every dollar they loan to consumers stuck in a desperate situation.

Kentucky is not the only state that is actively trying to pass laws restricting how providers of payday loans can operate, nor are they the first. There are some states that do not even allow payday loans of any kind.

Regardless of the outcome of the debate, consumers should contact their state and federal representatives to help bring light to the unfair charges related to payday loans. There are two sides to every story and those that feel short term payday loans are a better option than bank charges for overdrafts should help to come up with a solution that is fair to consumers and profitable to providers of payday loans.…

You already have enough to worry about

The granite crags of Montana reaching up to the sky are enough to lift your spirit and take it soaring. As long as you don’t think about global warming and the chance of a Glacier National Park without a single glacier. It would still be a beautiful place with amazing trails and lakes. The originally suggested title of “Glaciated Lakes National Park” meant to evoke the, quite frankly, more accurate vision of the moving ice that carved it out long ago, would have to be reconsidered.

It’s also easier to be happy if you have a way to get the plumbing disaster in the basement cleaned up before the end of the week, say tomorrow. A Montana payday loan won’t change the climate, but it can solve your other problem.

The Fastest Loan In The West

Payday loans have a number of advantages, speed being the most noticeable. Due to changes in technology, it is now often possible to get your loan within 24 hours, sometimes even less. The entire process can be completed online, at any time, day or night.

The funds will be electronically disbursed to your checking, sometimes even your savings account and you can take care of what you need to. The amount you can borrow is based on your income and state regulations, but other than that, the only thing you need to qualify is proof of employment and a bank account.

However, this very convenience can get a borrower into trouble, so it is wise to be cautious. Because a payday lender is not doing an in-depth study of your finances and financial history, looking at your credit report for example they are taking a greater risk of you defaulting on the loan.

Therefore, they transfer this risk back to you by charging substantially higher interest and with a much shorter repayment period. This means that such loans should only be used in an emergency and only for an amount you know you can repay.

Other Possible Advantages

Despite these caveats, used wisely, short-term loans can be a boon. Most people applying for them do so because their credit scores are sufficiently low that they have little recourse to credit cards or other loans. While abuse of payday loans will lead to disaster, prompt and on-time repayment of the same will reflect back on your credit report and can help to begin effecting credit repair. This combined with budgeting and a general process of not getting further into debt, will lead to lower interest rates and more standard borrowing ability in the future.…