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Payday Lending Industry Under Control
Payday Lending Industry Under Control
Payday lending industry now is taken under the strict control by the state authorities. Lawmakers designed particular laws regulating payday loan companies in order to measure their activity and provide limits on interest rates and fees.
LA,
California,
United States of America
(prbd.net)
23/12/2010
A lot of people often experience particular personal finance difficulties due to current unstable economy as it's really difficult to foresee what can happen in some time. Thus, it's sometimes inevitable to look for the fast way of getting some cash for the case of emergency. Fortunately, it exists - instant payday loans. However, due to the fact that payday lenders perform really high interest rates there were a number of complaints received from dissatisfied borrowers which forced the government to create particular laws regulating payday loan industry.
The purpose of this regulation consists in measuring the activity of payday loan stores and getting rid of frauds. The new instructions mostly concern limits on interest rates and additional fees provided by payday loan lenders. Now they are set and depend on the amount of loan. Besides, the new measures also include limits as for the borrowers who are not allowed to take multiple payday lans at once. The loan amount available for borrowers is also set and is up to $700, though, it can vary in different states. It was made to prevent unnecessary troubles with payday loans which can occur if consumer get several loans with no financial ability to pay them back. Particular statistics shows that $700 is the sum that any consumer with the average level of salary can afford to repay at once.
Well, disputes over payday loans last for a long time. Some people consider all the payday loan companies frauds, others think that they are rather useful when you really need some extra cash to make ends meet till the next payday. Anyway, payday loans are still legal in most states and, besides, they are under strict control that makes them reliable and safe. Today, there is nothing to worry about applying for fast payday loans which are even available on the Internet as now every consumer is protected by the state laws.
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